faang stocks chart

How Do Bitcoin And Ethereum Compare To Big Tech’s FAANG Companies?

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

The term “FAANG” stands for “Facebook, Amazon, Apple, Netflix, and Google,” and it refers to the stocks of five major American technological companies: Facebook, Amazon, Apple, Netflix, and Google. Apple was added to the acronym in 2017, leading it to be recast as “FAANG.” FANG stocks are well-known for their rapid growth in recent years, with each member more than tripling in value over the last five years.

What Is Ethereum

Ethereum, an open-source blockchain technology, uses Ether as its native currency. Ethereum was established in 2013 by Vitalik Buterin, a Russian-Canadian programmer, and a group of other crypto entrepreneurs. Many of the folks behind Ethereum have previously worked in the bitcoin community.

It’s based on blockchain technology, which is essentially a distributed computer network that keeps track of all cryptocurrency transactions, just like bitcoin. People can create apps on top of Ethereum, unlike bitcoin.

Smart contracts — collections of code that carry out a set of instructions and operate on the blockchain — are hosted on the Ethereum network. Decentralized applications, or apps, are comparable to smartphone apps that operate on Google’s Android or Apple’s iOS operating systems, but they aren’t controlled by a single business or authority.

What Is Bitcoin

Bitcoin, often known as a cryptocurrency, digital currency, or virtual currency, is a totally virtual form of money. It’s similar to money in electric form. It is possible to purchase products and services with it, although few shops accept it, and some countries have outright banned it. However, some businesses are beginning to see its rising power.

Each Bitcoin is essentially a computer file that is saved on a smartphone or computer in a “digital wallet” software. Bitcoins or even portions of Bitcoins can possible be sent to your e-wallet, and you can use it to make purchases. Send Bitcoins to other people. The blockchain keeps track of every transaction., which is a public ledger. Individuals may now trace the history of Bitcoin transactions, prohibiting them from erasing, duplicating, or spending coins they don’t own.

Some individuals like Bitcoin because it is not regulated by the government or banks. Bitcoins may also be spent in a fairly private manner by individuals who own them. . Despite the fact that all transactions are accounted for, Unless you told them, no one would know which ‘account number’ belonged to you.

FAANG Companies

If you follow financial or business news, you’ve probably heard or seen the term FAANG. It’s not a misspelling of a tooth from an animal. It’s an abbreviation for five major high-tech corporations — some may argue “the major corporations” — in the United States.

FAANG meaning: Facebook, Amazon, Apple, Netflix, and Google. These companies, all of which are based in the United States but have a global presence, are not just household brands but also financial behemoths.

Their aggregate market capitalisation is in the billions of dollars. The blue-chip stocks in the technology sector account for 15% of the Standard & Poor’s 500 index. As a result, they constitute not only one of the most important sectors in the United States, but also a substantial portion of the US stock market.

The FAANG Stocks

They don’t require any introduction: FAANG’s five stocks are all well-known companies whose products and services pervade our everyday lives. They’re also American corporate success stories, with each company’s stock rising by triple digits since 2015, and year over year.

  • Facebook – Instagram, WhatsApp, and its namesake website are all owned by Facebook. It has recovered over 41% from October 28, 2019 to October 28, 2020, and over 162 percent from October 28, 2015.
  • Apple – From October 28, 2019, to October 28, 2020, the group’s only product maker has returned more than 82 percent, and more than 272 percent from October 28, 2015.
  • Amazon – From October 28, 2019, to October 28, 2020, the world’s largest e-store has returned more than 79 percent, and more than 405 percent since October 28, 2015.
  • Netflix – From October 28, 2019, to October 28, 2020, this streaming superpower has returned 72 percent, and 348 percent since October 28, 2015.
  • Google – Alphabet (GOOG, GOOGL) is the parent corporation, and its name is synonymous with online searches and services. From October 28, 2019, to October 28, 2020, its GOOG shares have grown by more than 20%, and by more than 113 percent from October 28, 2015.

To put these figures in perspective, the S&P 500 has increased by 57% in the previous five years. As a result, FAANG stocks have been at the vanguard of the longest bull market in US history, beating the broader market by a substantial margin.

How Are Ethereum and Bitcoin Different From FANG Companies?

Stocks are more tangible, since they are pieces of paper that declare your ownership of a firm and a guaranteed part of its future revenues. They also give you a say in how the firm makes choices in the future.

It serves a greater purpose, and there are more methods to benefit from stocks, such as via the use of options and (time-based bets on the price), as well as through the use of voting rights to push for decisions that are more beneficial for you.

Cryptocurrencies are less tangible than traditional financial products, making them more volatile. It is just a decentralized type of currency that millions of users agree to use in their transactions, and this is what gives it its value. Cryptocurrency is fickle, which is why it may increase in value by a thousand-fold in response to major events, but its daily growth is also erratic, with only a small gain.

In comparison to FAANG business equities, which offer a guaranteed annual income. So yet, there are just two primary methods to make money with cryptocurrency. The first is to mine the cryptocurrency and then sell it or purchase market items, or to buy and sell the cryptocurrencies themselves, exactly like stocks. When the market price is low, purchase it, and when the market price is high, sell it. The key is to use the right indicators to know when to buy and when to sell.

Refund Reason