Bitcoin Rate of Return (BRR) Redefining Investment Performance Metrics in an Era of Currency Debasement

Description

This dataset supports the study “Bitcoin Rate of Return (BRR): Redefining Investment Performance Metrics in an Era of Currency Debasement.” It provides comparative time-series and indexed data evaluating the performance of the S&P 500 and other traditional investment assets in both U.S. dollar (USD) and Bitcoin (BTC) terms. The data is designed to illustrate how conventional investment metrics—such as Internal Rate of Return (IRR), Return on Investment (ROI), and Compound Annual Growth Rate (CAGR)—can diverge significantly from real performance when measured against a non-inflationary benchmark like Bitcoin. The dataset contains indexed values, percentage changes, and compound annual growth rates (CAGR) for the S&P 500 across different time periods (2016–2025 and 2020–2025). Each table contrasts nominal performance (USD terms) with real performance (BTC terms) to highlight the effects of monetary debasement on asset valuation.

Steps to reproduce

Step 1: Data Sources 1. S&P 500 Index Data o Source: Yahoo Finance, FRED Economic Data, or S&P Global. o Dataset: ^GSPC (S&P 500 Index). o Frequency: Monthly or yearly close values from 2016 to 2025. 2. Bitcoin Price Data Source: CoinMarketCap, CoinGecko, or Yahoo Finance BTC-USD. o Dataset: Historical daily or monthly BTC/USD exchange rate from 2016 to 2025. o Convert daily data to annual averages or year-end values for consistency with S&P 500 data. Step 2: Data Preparation 1. Create a Yearly Table containing the following columns: o Year o S&P 500 Closing Value (USD) o BTC Price (USD) o S&P 500 Value in BTC = S&P 500 (USD) ÷ BTC Price (USD) 2. Index Both Series o Set the base year (2016 or 2020) = 1 for USD terms. o For BTC terms, set the corresponding base value = S&P 500 in BTC for that same year. o Example:  In 2020: S&P 500 = 1 (Indexed), BTC equivalent = 0.12 BTC.  In 2025: S&P 500 = 2 (Indexed), BTC equivalent = 0.03 BTC. Step 3: Calculate Performance Metrics 1. Absolute Change 2. Compound Annual Growth Rate (CAGR) 3. Bitcoin Rate of Return (BRR) • Defined as the relative change in asset value measured in BTC terms. Step 4: Construct Summary Tables Create summary tables with the following structure (as provided in your dataset) Metric USD Terms BTC Terms Initial Value (Base Year) 1 (Indexed) BTC Equivalent Final Value (End Year) Indexed Final BTC Final Absolute Change % Change % Change CAGR / % Change CAGR % BRR % Save as Excel (.xlsx) files for each study period: • SP500_USD_vs_BTC_2020_2025.xlsx • SP500_USD_vs_BTC_2016_2025.xlsx Step 5: Validation • Re-check BTC/USD exchange rates for consistency across sources. • Confirm CAGR and BRR calculations with independent financial calculators or Python/R scripts. • Ensure that data rounding and indexing are consistent between the USD and BTC columns.

Institutions

• Jomo Kenyatta University of Agriculture and Technology College of Agriculture & Natural Resources

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