Digital Currency: Global Outperformance

Digital currency has outperformed all other major asset classes by many times multiples on an annualised basis since its inception back in 2009. Our analysis shows this trend continuing in coming years as we move toward regulation and see these assets move into mainstream awareness.

We see the current market as a wholesale revaluation of the entire digital ecosystem as real world application of the underlying technology and related digital assets begins to take hold. After a strong period of growth over the next five years, we expect that returns will fall more in line with traditional asset classes.

Asset classes performance summary – Gross performance to 30 June 2019

Asset Class1 Year (%)3 Years (% pa)5 Years (% pa)7 Years (% pa)
Australian Shares11%13%9%12%
International Shares (Hedged)7%12%8%12%
International Shares (Unhedged)12%14%13%17%
Private Equity13%14%13%17%
Australian Listed Property19%8%14%15%
Global Listed Property 8%5%8%
10%
Unlisted Property7%9%10%10%
Global Listed Infrastructure
(Hedged)
15%10%10%13%
Unlisted Infrastructure11%12%12%12%
Australian Bonds10%4%5%5%
International Bonds (Hedged)7%3%5%
5%
Cash2%2%2%
2%
Gold13%2%1%
-2%
Return on Bitcoin81%161%80%
190%
Market Cap CryptoCurrencies29%197%108%
241%

You will notice from the table above that the cryptocurrency space has not only outperformed every other asset class but there is blue sky between it and its nearest rival. We believe this presents a current and significant opportunity for astute and forward thinking investors.

Past performance is not a reliable indicator of future performance. Cloudbreak makes no representation in this regard to the future performance of the Fund.

References

“Asset sector performance: Returns over 1 to 15 financial years (to June 2019)”. SuperGuide, July 18, 2019. 
https://www.superguide.com.au/boost-your-superannuation/asset-classes-investment-financial-year
“EOFY Price History | ABC Bullion.” Accessed August 8, 2019.
https://www.abcbullion.com.au/products-pricing/eofy-price-history
“Global Charts | CoinMarketCap.” Accessed August 8, 2019. 
https://coinmarketcap.com/charts/
“Bitcoin Market Capitalization Chart.” BitInfoCharts. Accessed August 8, 2019.
https://bitinfocharts.com/comparison/bitcoin-marketcap.html
“Bitcoin Price in USD Chart.” BitInfoCharts. Accessed August 8, 2019.
https://bitinfocharts.com/comparison/bitcoin-price.html