Billionaire investor Warren Buffett has long praised the S&P 500 as the ultimate benchmark for long-term investors — but when measured against Bitcoin, the traditional stock index looks like it’s been left far behind.

According to new data shared on Oct. 5 by Phil Rosen, co-founder of the market newsletter Opening Bell Daily, while the S&P 500 has more than doubled in U.S. dollar terms since 2020, its value has plunged by roughly 88% when denominated in Bitcoin. In other words, Bitcoin’s performance has vastly outpaced America’s top stock index over the past five years.

Related reporting: US Debt Nears $38 Trillion as Bitcoin and Gold Emerge as the “Debasement Trade”

The Standard & Poor’s 500 (S&P 500), which tracks 500 leading U.S. companies, has long been hailed by Buffett as the best investment vehicle for ordinary investors. Since 1957, the index has delivered an annual inflation-adjusted return of about 6.68%, typically beating inflation and serving as a stable long-term wealth builder. Buffett’s famous “90/10 strategy” — allocating 90% of one’s portfolio to an S&P 500 index fund and 10% to short-term Treasury bills — underscores his faith in steady compounding over speculation.

The S&P 500 has had an 88% drop in nominal BTC value since 2020. Source: Phil Rosen

However, Bitcoin’s meteoric rise has rewritten the rules of wealth generation in the digital era. Despite its volatility, Bitcoin’s limited supply and global adoption have positioned it as a new-age alternative to traditional investment vehicles — one that’s leaving legacy assets in the dust.

S&P 500 hits records, but Bitcoin soars higher

The S&P 500 is currently hovering near an all-time high of $6,715.79, up roughly 14.4% since the start of 2025. Meanwhile, Bitcoin has surged 32% year-to-date, reaching a new record of $125,000 over the weekend.

To put this into perspective: an investor who put $100 into the S&P 500 at the start of 2020 would now have about $210, while the same amount invested in Bitcoin would be worth over $1,470, according to data from OfficialData.org.

Increase on a $100 S&P 500 investment since 2020. Source: OfficialData.Org

Comparing apples and digital gold

While the performance gap is dramatic, analysts caution that comparing the S&P 500 to Bitcoin isn’t entirely fair. The S&P represents a diversified basket of the largest U.S. companies, offering stability and steady growth, while Bitcoin is a single, highly volatile asset that operates on entirely different principles.

Bitcoin’s appeal lies in its decentralized nature and programmed scarcity, capped at 21 million coins, making it a hedge against inflation and fiat debasement. The S&P 500, by contrast, reflects corporate earnings and economic growth — factors rooted in traditional finance.

Still, the comparison underscores a growing narrative shift: Bitcoin is no longer seen solely as a speculative asset, but as a legitimate store of value competing with stocks, gold, and even fiat currencies.

As the U.S. national debt soars toward $38 trillion and fiat currencies lose purchasing power, Bitcoin’s long-term case as a hard asset continues to strengthen — even if Buffett himself remains unconvinced.