Why bitcoin could lose its edge to AI stocks over the next 5 years

Bitcoin has been a major disappointment for investors over the last five years, especially when compared with the strong performance of technology stocks during the artificial intelligence boom. Bitcoin has gained only about 40% over the past five years. By comparison, the S&P 500 has gained around 74% over the same period.

This shows that Bitcoin has not been able to keep up with the broader U.S. stock market, even though it is often viewed as an asset with the potential for very high returns. Bitcoin could still rise over the next five years, but investors may have to deal with more uncertainty and weaker returns, according to The Motley Fool.

A recession could give Bitcoin another boost

One possible reason for Bitcoin to rise in the coming years is a U.S. recession or another period of major economic uncertainty. During difficult economic periods, some investors may look for alternative assets to protect their money.

Bitcoin could benefit if investors start treating it as a safe-haven or alternative store of value during financial instability. There is already some evidence that Bitcoin can rise during periods of financial stress. Research from Charles Schwab found that Bitcoin's value increased during some periods of financial instability.