CryptoCurrency: Global Outperformance

Cryptocurrency 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 move higher as a full revaluation of the entire crypto ecosystem as real world application of the underlying technology (and the transactional currency) starts to take hold. After this period of growth, expected returns will fall more in line with traditional asset classes.

Asset classes performance summary – Gross performance to 30 June 2018

Asset Class1 Year (%)3 Years (% pa)5 Years (% pa)7 Years (% pa)
Australian Shares13%9%10%9%
International Shares (Hedged)11%9%11%11%
International Shares15%10%15%15%
Private Equity18%13%16%13%
Australian Listed Property (REITs)13%10%12%14%
Global Listed Property (REITs)6%7%9%
10%
Unlisted Property10%11%11%10%
Global Listed Infrastructure
(Hedged)
4%9%12%13%
Unlisted Infrastructure13%15%13%12%
Australian Bonds3%3%4%5%
International Bonds (Hedged)2%4%5%
6%
Cash2%2%3%
3%
Gold1%2%0%
-3%
Return on Bitcoin153%283%195%
203%
Market Cap CryptoCurrencies154%190%135%
134%

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 Classes: Naming the Investment Winners for the 2017/2018 Financial Year (and Previous Years).”
SuperGuide, July 24, 2018. https://www.superguide.com.au/boost-your-superannuation/asset-classes-investment-financial-year.
“Bitcoin Market Capitalization Chart.” BitInfoCharts. Accessed September 25, 2018.
https://bitinfocharts.com/comparison/bitcoin-marketcap.html.
“Bitcoin Price in USD Chart.” BitInfoCharts. Accessed September 25, 2018.
https://bitinfocharts.com/comparison/bitcoin-price.html.
“EOFY Price History | ABC Bullion.” Accessed September 25, 2018.
https://www.abcbullion.com.au/products-pricing/eofy-price-history.
“Global Charts | CoinMarketCap.” Accessed September 25, 2018. https://coinmarketcap.com/charts/.