Bitcoin: A Crumby Way to Save For Later

For investors seeking positive future returns, Bitcoin offers little reliable reason to expect them. But could it make sense for investors seeking a store of value?

My three-year-old likes to put goldfish crackers in his pocket to "save them for later." He is often disappointed later when he pulls out a fistful of crumbs. If you want to save something for later, the thing you store it in needs to be reliable. We learn from experience that pockets may not be a reliable store for crackers, just like Bitcoin may not be a reliable store for wealth.

Over the past decade, Bitcoin's annualized volatility has been nearly five times higher than that of the Russell 3000 Index—76.9% compared to 15.8%.¹ Since its first recorded market price in August 2010, investors on this volatile ride have experienced 27 peak-to-trough declines exceeding 10%, 10 declines exceeding 30%, and five declines exceeding 70%.

This data suggests Bitcoin is not a reliable way to store value. It is a way to speculate on it. And it could leave investors HODL'ing² a fistful of crumbs.

1. Based on monthly Bitcoin and Russell 3000 Index returns for the 10-year period ending December 31, 2024. Russell data in USD.
2. HODL refers to "Hold On for Dear Life," a commonly used phrase within the crypto community.

This article originally appeared June 5, 2025, in the DFA's "Above the Fray" series. Writen by Kristi Higgins, Investment Strategist and Vice President of DFA. It is republished here with permission of Dimensional Fund Advisors LP. No further republication or redistribution is permitted without the consent of Dimensional Fund Advisors LP.

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All expressions of opinion are subject to change. This information is not meant to constitute investment advice, a recommendation of any securities product or investment strategy (including account type), or an offer of any services or products for sale, nor is it intended to provide a sufficient basis on which to make an investment decision. Investors should consult with a financial professional regarding their individual circumstances before making investment decisions. Diversification neither assures a profit nor guarantees against loss in a declining market.

Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.

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