Home / Money / Personal Finance /  Apple or Bitcoin, which is better investment option? Zerodha co-founder says this

Amidst the chaos in markets due to macroeconomic backdrops, searching for the right type of portfolio has become vital to making long-term gains. When markets crash, generally, this also brings in the opportunity of buying value stocks. Currently, both the stock and cryptocurrency market is on a downturn. In a situation like this, if an investor chooses Apple shares today versus Bitcoin as an asset class, Nikhil Kamath co-founder of Zerodha on Tuesday stated with Apple, an investor will have $100 billion in real-world income per year.

Kamath who is also the founder of True Beacon, through his Twitter account said, "Beyond all the futuristic stuff crypto sells, if one has Apple shares today vs Bitcoin as an asset class, with Apple you have $100 b of real-world income per year."

On Monday, the stock trading platform co-founder guided that 9 out of 10 times, when things don't go your way, doing nothing is the best thing, adding, "in life and in markets."

He also said, "Doing nothing from a market standpoint, has to be to exit everything and then do nothing.

Both Apple and Bitcoin are leaders in their own field. Apple is currently the largest firm in the technology sector in terms of market share, while Bitcoin is leader in the global crypto markets.

Let's understand the performance of Apple and Bitcoin.

At around 12 pm ET, Apple shares are trading at $132.62 up by 0.56%. The shares have touched an intraday high and low of $133.80 and $131.48 apiece. At the current price level, Apple has a market valuation of $2.16 trillion.

On the previous day, Apple shares closed at $131.88 apiece.

Apple has touched breath-taking marks when it comes to market capitalisation. In January this year, Apple became the first company to hit $3 trillion milestone and even clocked a 52-week high of $182.94 apiece.

At present, the iPhone is the second-largest company in the world in terms of market cap, a couple of billion dollars behind Saudi Aramco whose market cap stands around $2.29 trillion.

On Tuesday, Saudi Aramco shares closed at $39.05 down by 0.89%.

Apple has given fruitful returns to investors in the past five years.

As per the historical data on Nasdaq, taking into consideration Monday's price level, Apple witnessed a weekly drop of more than 11%. While its monthly drop was a little over 9%. In six months, Apple shares have dived by a little over 24%, while year-to-date, the decline is over 27.54%.

The market has been volatile since Russia invaded Ukraine which led to massive spikes in oil and other commodities prices that led to inflationary pressures and further resulted in an interest rate hikes cycle. Stock markets are currently trading volatile and a bearish stance is expected to continue in the near term due to the worsening inflation outlook. Fear of possible recession also has added to woes.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services today said, "the majority view is that the Fed will have to hike aggressively with a couple of 75 bp rate hikes to contain inflation and establish its credibility."

US inflation has hit a fresh 40-year high of 8.6% in May which is one of the highest rates in the world.

Following the current conditions, Apple shares have also taken a beating. The company's shares have only managed to rise by marginally 1.07% in a year. The shares were at $130.48 a piece on June 14 last year.

However, Apple shares have skyrocketed by a breath-taking 263.41%. On June 14, 2017, the shares were available at merely $ 36.29 apiece, as per the Nasdaq data.

Apple's strong business portfolio, track record of significant long-term growth, its market share in the mobile industry, financial success, and simply the fact that it is a renowned star company with strong management and regulatory backups - make the tech giant a better and wise option of investment compared to crypto assets.

As per a Reuters report, J.P.Morgan said on Monday said Apple Inc's revenue from gaming and music offerings is expected to jump 36% to $8.2 billion by 2025 as the iPhone maker taps its huge user base to drive its subscription services. The two services are likely to have a combined subscriber base of about 180 million by 2025 - 110 million for music and 70 million for gaming - boosted by the rapid spread of the internet and booming gaming industry.

Coming to crypto leader Bitcoin, as per Coingecko data, the cryptocurrency is trading at $22,637.75 down by 5.8%. Its market dominance has dropped to 43.163% with a market cap of $431.64 billion.

As of today, Apple's market is five times higher than Bitcoin. Not just that, Apple's valuation is more than doubled the market cap of the entire global crypto market.

At Coingecko, 13,417 cryptocurrencies have a cumulative market cap of $999.74 billion. While at CoinMarketCap, 19,859 cryptocurrencies have a total market cap of $956 billion currently.

Data on CoinGecko showed that Bitcoin's weekly drop is about nearly 28%. While its monthly drop is a little over 25%. Annually, Bitcoin has tumbled by over 42%. In five years, Bitcoin has jumped by nearly 722%. It needs to be noted that the performance is tracked considering the current price level, and hence they ups and downs are bound to change accordingly. 

A decentralised cryptocurrency, Bitcoin was originally described in a 2008 whitepaper by an unknown person. Later in 2009, the cryptocurrency was made available for trading without any source of its management or owner. Up till this date, no one is aware of who invented this digital coin, however, many speculations and names have popped up. 'Satoshi Nakamoto' is presumed to be the pseudonymous person or persons claiming to be based in Japan, as the inventor of bitcoin. However, these speculations are still not confirmed as of date. But that hasn't stopped the frenzy in Bitcoin.

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