It's Official: Bitcoin Was The Top Performing Currency Of 2015

Tyler Durden's picture




 

For most investors, the major story of 2015 was the expectation and eventual fulfillment of a rate hike, signalling the start of tightening monetary policy in the United States. This policy is divergent to those of other major central banks, and this has translated into considerable strength and momentum for the U.S. dollar.

Using the benchmark of the U.S. Dollar Index, a comparison against a basket of major currencies, the dollar gained 8.3% throughout the year.

Despite this strength, the best performing currency in 2015 was not the dollar. In fact, the top currency of 2015 is likely to be considered the furthest thing from the greenback.

Bitcoin, a digital and decentralized cryptocurrency, staged a late comeback in 2015 to overtake the dollar by a whopping 35% by the end of the year.

Courtesy of: The Money Project

 

Bitcoin is no stranger to extremes. During the year it came into the mainstream in 2013, Bitcoin gained 5,429% to easily surpass all other currencies in gains. However, the following year it would become a dog, losing -56% of its value to become the world’s worst performing currency in 2014.

The second best performing major currency, relative to the USD, was the Israeli shekel. It gained 0.3% throughout the year, and the Japanese yen (0%) and Swiss franc (0%) were close behind, finishing on par with how they started the year.

The world’s worst performing currencies are from countries that were battered by commodities or geopolitical strife.

Ukraine’s hryvnia fell -33.8% in the aftermath of Crimea. Brazil’s real (-30.5%), the Canadian dollar (-15.9%), Russian ruble (-20.8%), and South African rand (-26.7%) all lost significant value in the purging of global commodities. Gold finished the year down -10%, and silver at -11%.

And as China devaluation accelerates, Bitcoin has been surging since the start of the year...

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Thu, 01/07/2016 - 20:12 | 7014591 demi urge
demi urge's picture

Oh wait, there they are.  Yep.  Still true.

Thu, 01/07/2016 - 20:12 | 7014590 Ms No
Ms No's picture

I am still so pissed myself that I didn't buy Bitcoin before that ramp up. My friend tried to talk me into it too. 

Thu, 01/07/2016 - 20:18 | 7014611 zipit
zipit's picture

Buy it now.  Come back in a year and tell us how it worked out.

Thu, 01/07/2016 - 22:28 | 7015232 Ms No
Ms No's picture

I have some, not a lot.

Thu, 01/07/2016 - 21:37 | 7015015 zibrus
zibrus's picture

Still time. Buy 10. It's going to break the previous high of 1000 next time it goes up. All previous bitcoin rallies have been on the order of 10 times the previous high. 1000 is the previous +/- so 10,000. At least it could buy you a vacation or two.

 

Don't know for sure of course, but there's a lot of data to back that up, not just technical analysis, but fundamentals. Also, we are in quite a politically challenged world right now.

 

There's only enough global bitcoin for each Chinese person to own .021 bitcoins, assuming the rest of the world stays out of it. Buy 10, it's one heck of a good gamble.

Thu, 01/07/2016 - 22:30 | 7015242 jzcjca00
jzcjca00's picture

What do you mean, "before the ramp up"?  We're still early in the ramp up.  Bitcoin was the best performing currency in 4 of the last 5 years, and will probably be the best performing in several of the next 5, too.  Partly that's because it's new, but mostly because governments can't destroy it by printing more!

Thu, 01/07/2016 - 20:14 | 7014594 Haole
Haole's picture

Bitcoin, BTChez

Thu, 01/07/2016 - 20:15 | 7014597 nmewn
nmewn's picture

Key word currency, not money.

Better stated, a conduit for currency.

Thu, 01/07/2016 - 20:32 | 7014689 A Lunatic
A Lunatic's picture

Well if I had to shove a few million up my ass and board a quick flight I would certainly want it to be Bit-Coin. Other than that.......

Thu, 01/07/2016 - 20:35 | 7014713 nmewn
nmewn's picture

lol...yeah well, other than that.

But I'm sure Andrew Sommer & Craig Wright are relishing the nuuuz ;-)

Thu, 01/07/2016 - 20:15 | 7014598 herkomilchen
herkomilchen's picture

Bitcoin, bitchez.  Own it like you own gold.

Thu, 01/07/2016 - 20:50 | 7014794 TheEndIsNear
TheEndIsNear's picture

How much does a bitcoin weight?

Thu, 01/07/2016 - 22:16 | 7015177 CPL
CPL's picture

About the same as all the gold they say is stored in their vaults.

Thu, 01/07/2016 - 20:51 | 7014795 Kirk2NCC1701
Kirk2NCC1701's picture

Got both.  Both are under water.  Significantly.

So this "Best performing" is relative to POE (Point of Entry).

 

Note to Self:  Never, fucking ever listen to Bulls, Bears or shills.  Diversify, using basic time-proven principles.  Keep the Dragon of Greed chained, avoid KoolAid, and sleep well at night.

Thu, 01/07/2016 - 22:29 | 7015234 Temporalist
Fri, 01/08/2016 - 00:51 | 7015660 Bay of Pigs
Bay of Pigs's picture

Why don't you quit complaining, blaming others and grow a set of balls pal?

You're a such pussy Kirk.

 

Thu, 01/07/2016 - 20:16 | 7014599 the 300000000th...
the 300000000th percent's picture

Some will never get what Bitcoin is all about. Or maybe they wont let themselves find out because they are so married to other ideas, idk. In any case what a shame. Lots of tech in there that will be in the future at some level. Bitcoin, who knows, but cryto-currencies will survive.

Thu, 01/07/2016 - 20:17 | 7014600 zipit
zipit's picture

The B in Bitcoin stands for Binary.  As in Zero or Moon.  Buckle up, Bitchez!

Thu, 01/07/2016 - 20:18 | 7014615 Oldballplayer
Oldballplayer's picture

What, a Bitcoin story has been posted for 17 minutes and no one mentions EMP, the grid going down, and survival in the post apocalyptic world.

You guys are slipping.

Thu, 01/07/2016 - 20:21 | 7014629 zipit
zipit's picture

They are busy reloading shells, cornholing rations, and generally prepping to blast sheeple that venture their way during the zombie apocolapyse.  

Thu, 01/07/2016 - 20:27 | 7014659 A Lunatic
A Lunatic's picture

Anyone corn-holing their rations needs to be shot. I believe the term you are looking for is rat-holing, lol.....

Fri, 01/08/2016 - 04:31 | 7015863 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

No actually more busy on chasing Muslims it's the new thing right now... In a few months it will be Russian or Chinese...

Thu, 01/07/2016 - 21:31 | 7015003 SuperRay
SuperRay's picture

When you're hiding out from government spooks how ya gonna buy anything when they can track you through bitcoin?  There, gave you a new one at no charge. :-)

Fri, 01/08/2016 - 11:35 | 7017349 RedDwarf
RedDwarf's picture

LOL.  And how gold and silver will be the new currency (as opposed to labor, food, and such) in said post-apocalyptic world, even though there will be no travel or trade to speak of except of a immediate and local nature.

Thu, 01/07/2016 - 20:19 | 7014616 Consuelo
Consuelo's picture

 

 

I want to believe.   I'd like to believe.   Unfortunately, anything that involves a. Independence  b. Untraceability  c. Growing popularity   Will be co-opted by the State.   And if co-opting proves unsuccessful, a demonization campaign ginned up over ties to 'terrorist activities' is all it will take.   It isn't that the concept is flawed, it's an underestimation of the lengths the State will go to in order to maintain absolute control.

Thu, 01/07/2016 - 20:33 | 7014693 Condition 1SQ
Condition 1SQ's picture

Give this man a cigar.  China stomped on Bitcoin two years ago and will likely do the same thing again.  Every BTC transaction has to be reported to the IRS, as well.  Currency my ass.  And 35%?  I can find a multitude of investments that did better than 35% last year and call them a "currency" because I can trade them.

Thu, 01/07/2016 - 21:48 | 7015057 zibrus
zibrus's picture

Only BTC sales into USD has to be reported to the IRS. Direct BTC-to-BTC doesn't have to be reported. Plus, it's a structural nightmare for the dumb IRS to track it all down.

 

I did say bitcoin is traceable, what I did not say in a while is that it is sufficiently complex and difficult to trace, that it makes it unprofitable for the IRS to try and track it down. We the people can use free time to track down black ops money through the bitcoin network (think bounties). The IRS doesn't have the resources to pay employees to go through and track down serfs like you and me. The'll go after silk road, but that's about it.

 

My motto, make them (IRS) spend their energy, audit me, and come and get it. It's kind of like fighting a war of attrition, they'll starve first.

Fri, 01/08/2016 - 04:54 | 7015881 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

Bitcoin will allow the use of reusable payment code protocole (BIP47 if I remind correctly) who will allow anonymous transaction !

Thu, 01/07/2016 - 20:50 | 7014793 herkomilchen
herkomilchen's picture

Vs what?  Using the dollar?  Using physical gold coins you can only trade with someone face to face?

The state is scared of bitcoin exactly because it threatens its hegemony.  Show me a currency that does not scare the state and I'll show you a currency it controls, tracks, manages, and prints top to bottom, i.e. the dollar.

Unless you intend to be nothing but a good sheep for the rest of your life, you need to get used to using alternatives that your masters don't approve of.

Thu, 01/07/2016 - 21:23 | 7014900 BadLibertarian
BadLibertarian's picture

Amazing that you would have to make this point to a ZH poster, but well said.

Thu, 01/07/2016 - 21:46 | 7015060 Pickleton
Pickleton's picture

"Using physical gold coins you can only trade with someone face to face?"

"The state is scared of bitcoin".

"you need to get used to using alternatives that your masters don't approve of."

 

THIS!!!!   THIS HERE PEOPLE IS GENIUS!!!!

What does the State to do to things is doesn't approve of?  It tries to KILL that thing.  THIS genius denigrates that which a govt CANNOT control, acknowledges that the State doesn't like that which it most certainly CAN control - Bitcoin, immediately ignores that notion, and then tells you YOU'RE dumb if you don't get into it.  THAT is some guuud thinkin.

 

 

 

 

 

 

Thu, 01/07/2016 - 21:51 | 7015085 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

LOL the State is not scared of bitcoin. I've said this from DAY ONE. Of course TPTB are going for this, they are going to use bitcoin or something like it for global currency. They at first, pretended to not like it, to get people to think it's good becuase they "State" is scared of it. Thus fooling al lthe sheeple. This is the reason I hate it. I will not go to electronic satanic mark of the beast. 

Fri, 01/08/2016 - 00:04 | 7015529 moyyewhon
moyyewhon's picture

the mark of the beast is 666.. bring up a pure gold bar... there is your 666 turned backwards..

going back to the gold standard is satan's rule

Fri, 01/08/2016 - 11:47 | 7017405 BadLibertarian
Thu, 01/07/2016 - 21:01 | 7014855 Sanity Bear
Sanity Bear's picture

Meh, this is a win-by-default in the context of central bankers deliberately destroying the value of their currencies and suppressing the price of gold and silver.

Thu, 01/07/2016 - 21:22 | 7014951 yellensNIRPles
yellensNIRPles's picture

Ding ding ding! You are correct. The CBs of the world will either take it over completely, or they will put their boot on your fucking throat before they let it nuke their existing system.

I'm so fucking tired of people saying those who don't approve of BC 'don't understand it'. I'm also tired of them using some fucking retarded argument like 'not understading BC is equivalent to people not getting the 'motorcar or airplane' before their time, etc.

The motorcar and airplane were invented, manufactured and sold to gain wealth and create legacies for men who were operating within the realm of their existing financial institutions of their time. Empires, companies and the products they created were built for profit and not for any other reason. Those things have NOTHING to do with overthrowing the global financial system using crypto-currencies and somehow creating fairy dust that eliminates global corruption. The argument is invalid and childish.

Another point that so many people miss is that at this point and time, BC is no different than cash under the table as it already exists in black markets and in public around the world.

BC is created using fiat currency to purchase computers and energy for running servers to mine BC. That fiat currency finds it's way back into the CBs existing system which allows fractional reserve banking to continue at breakneck pace. Any BC created after the fiat finds its way into the bank accounts of electric companies and computer manufacturers is currently of little consequence to CBs because the people who are using it have not threatened the CB by removing any money from the system. What they create and sell is tantamount to creating a quilt after buying needle and yarn and the central bank does not care other than to tax it.

But the day that crypto currencies threaten to unseat the dollar or gold, there will be fucking hell to pay.

Failure to follow the path of fiat and failure to realize why BC is not currently a threat to CBs is a risk only to those desperate enough to buy into the idea that they can get rich quick through BC. And why, oh why doesn't anyone keep pointing out that all of the BC proponets want you to BUY IT so the value of theirs goes UP? PONZI anyone? Hello?

I say again. Good luck.

Thu, 01/07/2016 - 21:48 | 7015025 BadLibertarian
BadLibertarian's picture

A few things:

First, the CBs are already doing a fine job of 'nuking' the existing system all on their own. The biggest threat to CBs are CBs. Banks are investing in blockchain tech because they can see the writing on the wall - but they're still trying to figure out a way to have their cake and eat it too. Get the efficiencies of crypto, while still clinging to fiat. It won't work, but it's fun to watch.

Second, cars won out over horses because they solved the transporation problem with superior ease of use, efficiency, and utility (and a lot less horse shit). The same is true of any new invention which replaces a legacy technology. Bitcoin is like money - only better, just like mp3's are like CD's - only better, just like CCD's are like cameras - only better, just like cars are like horses - only better, etc., etc.

Bitcoin will succeed to the degree that it continues to fulfill that promise (being better money) or fail if it doesn't, and so-far, so-good. A side effect of that might be to help accelerate the collapse of a system that's mathematically doomed to failure anyway, but it's not the prime reason why people will switch to using it.

Re: your Ponzi claims - I guess anyone can claim anything they'd like, but I think the fact that bitcoin prices seem to bounce back after every bubble (and there have been several) makes that seem unlikely. As for me, I'm certainly a proponent of Bitcoin, but I have a lot more interest in seeing how it can help people in developing nations who have no financial services, or only very exploitative ones - like Western Union. If I were going to recommend bitcoin to anyone, it would be someone in that kind of situation long before I'd ever think about recommending it to someone in the developed world.

I'd prefer to see Bitcoin take over from the bottom up, rather than from the top down. I'd like to see most of those 21 million coins in the hands of the exploited first, and let the exploiters buy in (and drive up the price) afterwards - once they all finally realize what the end-game for debt-based currency really looks like.

That would shake things up a bit, don't you think?

Thu, 01/07/2016 - 21:59 | 7015122 zibrus
zibrus's picture

BadLib, another great point. Mobile phone/computing/networking technology is getting dirt cheap and affordable for the 6 billion that are in bad shape on this planet. With cheap phones, networked, and bitcoin, they can now trade among themselves, store their bitcoin in wallets (private banking), etc. All without the predatory bankster system. (as you say like western union).

Thu, 01/07/2016 - 22:40 | 7015261 BadLibertarian
BadLibertarian's picture

And with d-apps coming online to allow small businesses to transact with their bitcoin remittance receiving customers without having to resort to use of the crappy local fiat (and with an easy way to avoid the taxes imposed by their corrupt and ineffective governments), plus providing features like inventory control, point of sale, etc. - for free, I think it's pretty easy to see how the ecosystem will bootstrap itself in the third world.

Some people in the developed world *want* Bitcoin - and that's nice. But the real action happens first, imo, where people *need* Bitcoin.

Thu, 01/07/2016 - 22:55 | 7015326 zibrus
zibrus's picture

Bitcoin is, truly, of the people, for the people. There are those of us that are willing to fight for humanity (yes programming is a type of fight). And willing to fight for free. This world is going to either go extinct (mad max), which i don't believe, or suffer severe withdrawal symptoms of being under one form of tyranny or another for 10,000  years.

 

I vote for the human species. All of them... though I could stand much lower or non-existent psychopathic personalities.

Thu, 01/07/2016 - 23:56 | 7015481 BadLibertarian
BadLibertarian's picture

Agreed. The way I look at it is that how we have behaved for the 10,000 years since agriculture and urbanization started has been awful for billions of people, but a lot of how that went down was written into *our* mental blockchain due to the competitive circumstances of our evolutionary history. Misery creates psychopathy and psychopathy creates misery - it's an amplifying feedback loop that was coded into our behavior by evolutionary necessity - nature red in tooth and claw.

These driving op_codes, for power, for sex, for control are way down deep close to the brain stem - written into our 'firmware,' if you will, so they are very powerful. And not so coincidentally, those drives also show up pretty low on Maslow's hierarchy, so they are needs we tend to pay a lot of attention to.

However, the one thing that distinguishes human animals from other animals is our talent for abstract thought and the use of reason and logic. Those capabilities spring from our 'software' platform - the neocortex, which encodes models of the world in the form of memes. A human brain with the right set of memes 'running' in the neocortex can override or redirect the more primitive programming.

And the great thing is that unlike firmware, software is much easier to change. I'm not saying that most people are good at challenging and editing their guiding memes, but some people are, and I believe it's a skill anyone can learn - debugging your own mind.

One of the definitions of AI that I've always liked is that a system can be said to be 'aware' or 'conscious' when it's able to overcome the limitations of its original programming. I think the same can be said of our species.

And my hope is that as a species, we meet that definition before we create a machine that does. Because if we haven't managed it by then, then the future will look more like "Terminator" than "Star Trek."

The good news is that I think we have all of the tools we need to get there. We just need to keep working on them. It's really an amazing time to be alive, and I'm grateful that I'm lucky enough to be here at this time, to watch the change that is already happening.

Fri, 01/08/2016 - 01:28 | 7015723 zibrus
zibrus's picture

I concur.

Thu, 01/07/2016 - 22:10 | 7015136 The Saint
The Saint's picture

i have been using Bitcoin to make a dollar profit for about a year now.  However, I have never held as much as 1 BC for more than 2 hours.  I liquidate almost immediately after acquiring the BC.  The reason is two fold.  1) The government can declare Bitcoin an illegal currency at any moment with it's use subject to jail time.  Only the government has Constitutional authority to print (physically or electronically) currency. 2) At some point people holding Bitcoins will come to this realization prior to the government making that declaration.  That will be the end of the Bitcoin in America and eventually elsewhere also.

Thu, 01/07/2016 - 22:35 | 7015256 zibrus
zibrus's picture

The day all countries come together and hold hands... All the world has to unify against bitcoin. It's soooo much bigger than just the United States of Slavery.

Thu, 01/07/2016 - 22:45 | 7015286 BadLibertarian
BadLibertarian's picture

Everything you just claimed the government can do to Bitcoin, it already once did to gold and could again at any time (or to silver, or to anything else). The biggest difference being that it's a lot easier to move or hide bitcoin than it is to move or hide gold or other physical assets.

Thu, 01/07/2016 - 23:07 | 7015371 Curiously_Crazy
Curiously_Crazy's picture

. "Only the government has Constitutional authority to print (physically or electronically) currency..."

Tell that to the Federal Reserve.

 


Fri, 01/08/2016 - 05:23 | 7015909 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

Only the government has Constitutional authority to print (physically or electronically) currency.

 

What is statist shit do here in ZH ?

 

Seriously ZH is more and more down these days...

Fri, 01/08/2016 - 08:48 | 7016353 Repet
Repet's picture

Just like outlawing drugs was the end of drugs, right?

Fri, 01/08/2016 - 11:59 | 7017463 BadLibertarian
BadLibertarian's picture

Prohibition doesn't even work inside of a literal prison. So I'd love to see some drug war expert try to explain why spending the vast sums we do on prohibition outside of prison is anything other than fraudulent and wasteful misuse of taxpayer resources.

Harm-reduction, imo, is a much better policy goal than prohibition - in just about every way I can think of.

Thu, 01/07/2016 - 22:12 | 7015162 Duc888
Duc888's picture

 

 

It's all fun and games unto quantum computing comes into play... and then hacking those.

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