See More

Nikkei Index Finally Recovers to 1990 Levels, Points to Bitcoin

2 mins
Updated by Max Moeller
Join our Trading Community on Telegram
Investors who bought Japanese stocks in 1990 are 1% away from breaking even, 29 years later. The staggering statistic was reported via Twitter. Does Bitcoin represent a safer investment?
https://twitter.com/DavidInglesTV/status/1218013578210336768 The Nikkei Index has seen substantial growth over the past four years to close above 24,000. The increase is more than double the lowest levels during the early 2010s. The rise is reflective of the overall economic strength of the global market generally.

Equity Collapse

While this number is alarming, investors who bought into the index just two years prior are even further from being whole. The Nikkei saw staggering declines at the end of the Reagan administration. The high at that time – close to 40,000 – is nowhere in sight. This event spurred the government to push liquidity into the market. Similar to current quantitative easing efforts in the US, the Japanese government owned nearly 45% of all outstanding debt. Of course, some would argue that timing is everything. Investors who bought in 2008 – close to when Bitcoin came to be – and later have seen dramatic returns. Nevertheless, the collapse of the market left a ‘lost generation’ behind. Bitcoin Nikkei

Bitcoin as a Hedge?

The statistics shed some light on the current all-time highs in the US stock market. While market euphoria remains, a similar decline could leave a generation of investors behind. Bitcoin followed a similar trajectory, rising briefly to $20,000, only to fall to less than half. Still, many would argue that the first cryptocurrency is a better risk than equities overall. In spite of its volatility, Bitcoin can be considered a hedge investment against just this type of equity loss. Inflation plays a role in the value of an investment over time. While the Yen has lost value over the past 30 years, Bitcoin is protected from inflation. Even with new coins being minted every day as block generation continues, the coin will forever keep its 21 million hard cap.
Top crypto platforms in the US | March 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Jon_Buck_userpic_basic.jpg
With a background in science and writing, Jon's cryptophile days started in 2011 when he first heard about Bitcoin. Since then he's been learning, investing, and writing about cryptocurrencies and blockchain technology for some of the biggest publications and ICOs in the industry. After a brief stint in India, he and his family live in southern CA.
READ FULL BIO
Sponsored
Sponsored