But if we assume that the index is capable of producing comparable returns over the next three decades and you invest $ 500 per month in S&P 500 index funds that offer an average annual return of 10.7% on a 30-year period, you with $ 1.13 million. Earn $ 1,000 per month and you’ll have $ 2.25 million.
What makes the S&P 500 a safer investment than Bitcoin? It’s easy – it’s been around longer, and it has a long history of recovering from downturns and rewarding investors who stay the course. Because Bitcoin has only been around for a little over a decade, we don’t know what kind of stamina it has.
Additionally, the future value of Bitcoin will largely depend on the extent of demand, and for demand to remain strong, Bitcoin must become a widely accepted form of currency. But it’s too early to say whether or not that will happen, so if you’re looking for a way to build solid wealth without having to expose yourself to a world of risk, S&P 500 index funds can be a much better bet.
To be clear, that doesn’t mean you shouldn’t invest any money in Bitcoin. But it still pays to put most of your assets on the stock market, and S&P 500 index funds are a great way to invest there for the long term.
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