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Bitcoin the Most Profitable Asset in 2019, Chinese Real Estate Turned Loss Making

In 2019, most major investment classes have recorded positive returns. Bitcoin has increased by 107% in 2019, making it the most profitable asset of the year. While China’s real estate price index was one of the few unprofitable assets in the world in 2019.

Judging by the economic fundamentals, 2019 was not performing well. At the yearend of 2019, the World Bank cut global GDP growth to 2.5%, the OECD cut global GDP growth outlook to 2.9%, and the IMF said its latest World Economic Outlook projections show 2019 GDP growth at 3.0%, down from 3.2% in a July forecast.

While the fact is that the prices of major assets in the world have risen in resonance in 2019. Equity assets have increased significantly, both A-shares and U.S. stocks have enjoyed positive returns; Shenzhen component index rose 43.68%, the highest in the world; the Nasdaq index is up more than 35% and the Dow Jones up 24%. European equities have also done well, with the Stoxx 50 index up more than 18% for the year.

And Commodities, with crude oil, metals and agricultural commodities, have all risen over the past year. The Thomson Reuters/CoreCommodity CRB Index, a commodity futures price index, rose 10.28 percent, hitting a record high since 2013.

Among them, bitcoin was the best performer in the world, up 107% within the year (as of Dec. 31, 2019).

The original and largest cryptocurrency had a furious run in mid 2019 that peaked around $13,000 in July.

Yet only bitcoin has made some gains in 2019, with most crypto assets were still in bear markets.

It is worth noting that in 2020, state-backed digital currencies from a few countries are likely to be launched, at which point bitcoin’s role as a payment function may be significantly reduced, and other cryptocurrencies such as stable coins in the payment market might be impacted as well. The price of altcoins may get lower and lower.

But if bitcoin’s value as a safe-haven asset strengthens, a bad economy in 2020 could further support bitcoin price.

According to statistics, the only asset that was losing money was China’s real estate, which grew at fastest pace in the past few years. China’s housing market continues to slow down as Beijing talks tough.

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