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Bitcoin has become famous around the world for so many reasons. Some are fascinated by its technical genius, and others are convinced it will replace all fiat currencies in a few years. Many just want to know if it can make them money. The answer is yes.
An asset that returns 20,000 times your original investment in just seven years sounds too good to be true. But, that’s exactly what Bitcoin has done for many people since 2010. If you had invested just $100 in 2010, based on the current price it would now be worth millions. That makes it one of the best investments in history.
With those numbers, you don’t need to understand Bitcoin on a technical level to see that it is something special. I intend to go through the rollercoaster ride you would have been on if you had invested in 2010, and if it’s too late to invest in Bitcoin now.
Bitcoin 2010 – Now
2010 was the year that Bitcoin really started its incredible rise in price. Before that, it was worth basically nothing, and you could mine thousands of them for free using just your laptop. The first real world Bitcoin transaction was in May, and it was for a pizza. By July the price for one bitcoin shot up to around $0.08, meaning $100 would have got you well over 1,000 bitcoins.
2011 and 2012 saw Bitcoin steadily rise in value. You would have been tempted to cash in even at this early stage, as your $100 investment would already be worth over $16,000. That’s a ridiculous return on investment by anyone’s standards.
However, if you held your nerve and didn’t sell out, 2013 is when things really started to kick off for the digital currency. Companies such as Overstock.com started announcing plans to accept Bitcoin and new exchanges like CEX.IO made trading and investing much easier. This crazy year for Bitcoin saw the price go as low as $13 and as high as $1,200. At its peak, the original $100 in 2010 would be worth around $1.5 million.
2014 saw a big drop from the record prices in 2013. After a big price bubble formed based on too much hype, there was a crash. It would have felt like you just lost over a million dollars, even though your investment would still be worth over $100,000. But, since then Bitcoin has steadily strengthened.
2016 was a great year for Bitcoin. It more than doubled its value and was the best performing currency in the world. It survived some heavy shocks, such as the hacking of bitcoin exchange Bitfinex. Also, it proved it really was a currency that couldn’t be controlled.
Uber starting using it in Argentina after the government blocked banks from transacting with the rideshare giant.
Now, in 2017, there are many exchanges to reliably buy Bitcoins, such as CEX.IO, where the price is well over $4,000 and has hit records of over $4,400. This means the $100 Bitcoin investment is now worth over $2 million. Yes, if you had bought a small amount of Bitcoin a few years ago, you would be a millionaire by now.
The very few were interested in Bitcoin in the days its price was less than one dollar. Many of those who bought these ‘disputable’ digital coins did it just for fun and without any business plan. Who could’ve think that this ‘fun’ would change their lives:
- Guy named James Howells was working in the IT sphere in 2009. That’s where he got the idea from his colleagues to try mining ‘this new digital money’ using his laptop. At that time, one PC was enough to bring you about a thousand Bitcoins per day. The mining lasted for about a week and brought James 7500 Bitcoins. His girlfriend was annoyed with the loud noise of a mining laptop, so he gave up on that idea and forgot about his Bitcoins. By the time, his Bitcoin capital was worth almost million dollars he realized that he has thrown away the hard drive that kept his Bitcoins. He was so persistent that even went to a dump site in order to find the hard drive. Unfortunately, this isn’t the happy end story and the hard drive with, for now, $30 million is somewhere in the dump of New Port. What’s interesting in this story is that if this guy didn’t give up in 2013 and would continue mining with a more advanced equipment – he would still be a wealthy man today.
- Now we move to Norway in the year 2009, that’s where one guy bought 5000 Bitcoins for less than $30. In four years he realized that by selling only one fifth of his funds he can afford an apartment in one of the wealthiest districts of the city. He is still a happy man if didn’t sell the rest of his Bitcoins the same year. It blows your mind when you understand that $30 investment eventually turned into a prestigious apartment and $15 million capital (with the current Bitcoin price of about $4000).
- If you’re selling pizza, here’s a solution on how to make its price grow by thousands of times each year – sell it in Bitcoins. In the spring of 2010, Domino’s pizza sold two of their specialities for 10,000BTC. Three years later it was worth $1 million. Now it is $40 million. This amazing story is often discussed in the internet, while the comparative price of this Italian regale continues increasing incredibly.
Bitcoin is as volatile, dangerous, and profitable as it has ever been. Every day many people make thousands of dollars trading Bitcoin, while others lose just as much. In 2017 we’ve already seen the price drop to under $1,000 and over $4,000 in the space of a few months. With these price fluctuations, that $100 investment would fluctuate hundreds of thousands of dollars in value.
Bitcoin is by no means a stable currency or investment just yet. Getting involved now is still very risky, but many think its price will go even higher.
As with all investments, many experts try to predict what will happen to the price of Bitcoin. Some think that it is overvalued, while many think that the price is likely to go even higher. Top predictions say it could hit $100,000 in the next 10 years.
Cryptocurrencies have proven valuable, and will almost certainly be a big part of the future of finance. Bitcoin will probably always be one of the main cryptocurrencies, simply because it was the first.
What is sure is that anyone investing in Bitcoin is in for a bumpy ride. Every news article, Bitcoin exchange hack, or decision by regulators has a huge effect on its price. As you can see by going through the history, having a significant amount of money invested in Bitcoin would be crazy and stressful. Only do so if you think you can handle it!