Bitcoin's annual return rate is as high as 212%, far surpassing Facebook and Google

Analysts believe that Bitcoin has the long-term investment potential to deliver annual returns that outperform those of the world's largest technology companies, including Facebook and Google.

Bitcoin's annual return is 8 times that of Facebook

According to data released by Chris Burniske, product director at investment management firm ARK, Bitcoin's total annual return has reached 212% since Facebook's IPO (initial public offering) five years ago.

In comparison, Facebook produced a return of just 27.1%, Amazon 31%, Netflix 72.7%, and Google's 23% was dismal.

Such a high rate of return on Bitcoin is attributed to investors. More and more investors are beginning to participate in Bitcoin investment and regard it as an ideal long-term investment asset.

Writing on market analysis site Inside Futures, JustForex’s Igor Afa breaks down five factors that make cryptocurrencies “ideal long-term investments” and will “bring about extremely high demand for cryptocurrencies in the near future.”

Afa mentioned that China's demand, growing confidence in Bitcoin, price volatility, practicality and limited supply (21 million) are the key factors that make Bitcoin attractive to global investors.

Regarding market confidence, he talked about Bitcoin’s resilience after incidents such as exchange attacks. Compared with the past, Bitcoin is more resilient in the face of challenges. He wrote:

Hacker attacks and Bitcoin exchange shutdowns no longer cause panic in the market like they did a few years ago. The credibility of this digital currency has been greatly enhanced.

Expanding user base

Interestingly, the analyst predicts that Bitcoin’s user base will grow rapidly due to the increasing supply in the market.

We believe that the Bitcoin user base will increase rapidly, bringing huge market demand.

It is not just industry insiders who hold similar views. Last week, Professor Roman Beck, an academic and fintech expert at the University of Copenhagen, said in an interview with the media that Bitcoin is "extremely attractive and is an alternative to the dollar or the euro."

(Professor Roman Beck, academic and fintech expert at the University of Copenhagen)

For investors, investing in Bitcoin is an effective way to enrich their portfolios. After all, Bitcoin prices have increased by 130% in the past year. Other cryptocurrencies such as Litecoin (LTC) and Ethereum (ETH) have also begun to play a role.

Beck added that cryptocurrencies are an effective tool for protecting consumers’ wealth during times of inflation. He said the two innovations he’s most looking forward to seeing in 2017 are banks issuing their own digital currencies and blockchain creating real “benefits” for companies.

Coin price development

Last week, Babbitt reported on the price prediction of Yves Lamoureux, president and chief strategist of macroeconomic research firm Lamoureux & Co. He believes that the price of the currency will eventually reach as high as $25,000. However, if Bitcoin can rectify itself when the next "bubble" comes, the potential of the currency price will be unlimited.

In the short term, once the U.S. Securities and Exchange Commission (SEC) takes a positive view on the Winklevoss brothers’ Bitcoin ETF, it is likely to bring a price increase. It is reported that this wave of increase is likely to bring nearly $300 million in capital flow to the Bitcoin ecosystem.