Whether you are investing in real estate, stocks, or cryptocurrency, even the greatest investor cannot foresee how much value an asset may one day have. If you took a chance on bitcoin early on, your investments could have paid off big time. Almost a decade ago, the value of a single bitcoin was worth around a quarter-of-a-cent or .0025. Today, that single bitcoin is worth over $6000. If you invested $1,000 in bitcoin 8 years ago, here’s how much you’d have now.
Taking a Risk and Riding it Out
What if you had $1,000 dollars to invest 8 years ago and decided that bitcoin was the way to go? How much money would you have now?
In order to make this calculation as exact as possible, let’s say that you bought bitcoin in July 2010. The price of bitcoin then was $0.08 per coin. For $1,000 dollars at that time you could have purchased 12,500 bitcoins.
As of this moment, one bitcoin is worth $6,000, meaning that if you were to sell now you would have made $75M. Therefore, you would have earned a 7.5M% profit off of your initial investment. Of course, this means that you would have had to resist the urge to sell them each time bitcoin jumped in value. Or, on the flip side, resisted abandoning ship every time it dropped.
$60 Million for 2 Pizzas
What was the first transaction ever made with Bitcoin? A software programmer known as Lazlo Hanyecz offered 10,000 bitcoins for a couple of pizzas. For a least three days, no one accepted the offer, with Hanyecz writing: “So nobody wants to buy me a pizza? Is the bitcoin amount I’m offering too low?” Finally, one of the people on the forum accepted the offer and bought the pizza for Lazlo in exchange for 10,000 bitcoins.
In today’s bitcoin, Lazlo paid $60 million for his pizzas. With this transaction, the most overpriced pizza in the history of mankind was purchased in bitcoin legacy.
Seeing Potential in Investments
The above calculations and anecdote may discourage people from wanting to invest. Even though it may seem that the best time for investment has passed, bitcoin is still fluctuating constantly. Bitcoin’s first raise was towards the end of 2013 when it reached $900 per coin. That was the highest point of bitcoin until then and it remained the highest for 3 years following.
Around February 2017, the price of bitcoin rose above $1,000. This benchmark certainly was a significant historical moment. However, this moment quickly became irrelevant as 2017 held more surprises. Until the end of 2017 bitcoin recorded one of the biggest increases in value in history, reaching an all-time high of $19,700.
According to Kim Dotcom, ditch the US Dollar and buy cryptocurrencies. Maybe he was right.