Check two posts ago where I talk about the #1 mistake beginners make - that's where I talked about it. However, many people still had a question along your lines because I mentioned 'destroying value' in the video if you're up against USD, but down against BTC so will clarify here.
Probably the easiest way to understand it is to imagine that you hired someone else to manage your investments into cryptocurrencies. This person invests in Ark and doubles your USD. But had you just bought Bitcoin, you would have quadrupled your money. You likely wouldn't be too happy with the person you hired to manage your investments would you? You could have just bought Bitcoin and got double the return! You might even go as far as to fire the person. This is the dilemma wealth managers face in the real world when comparing against the S&P 500.
However, if that wealth manager can illustrate that they took on less risk during that time frame, or illustrate to you in a meaningful way that their bet will pay off in the long-term and the market is being irrational in the short-term, then you may decide to keep them around. Imagine yourself as that wealth manager. If you're underperforming Bitcoin, then you must justify that underperformance with logic otherwise you are just destroying value for your client: Yourself.
Hope that makes some sense.