Does Bitcoin Beat Inflation? Real Returns Analysis

See if Bitcoin has outperformed M2 money supply expansion, showing real returns adjusted for monetary inflation.

Key Insights

Bitcoin has returned +32,179.4% nominally since 2014, with +16,623.5% when adjusted for M2 money supply expansion. While Bitcoin has shown real value growth, approximately 48.3% of the nominal return can be attributed to monetary expansion.

Performance Summary

Nominal Return
+32,179.4%
M2 Money Supply Growth
+93.0%
M2-Adjusted Return
+16,623.5%

Period: October 6, 2014 to November 3, 2025

What This Means

Bitcoin has significantly outperformed M2 money supply expansion, indicating strong real value appreciation. This suggests the asset has generated genuine wealth beyond what can be explained by monetary expansion alone.

Adjusting stock performance for M2 money supply expansion reveals how much of price appreciation is due to monetary policy versus real value growth. This perspective helps investors understand whether an asset is generating genuine wealth or simply keeping pace with money supply growth.

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