CRYPTOCURRENCY
Is it too late for you to get a piece of the cryptocurrency pie?
The price of Bitcoin in 2010 was…I can hardly believe this…
Bitcoin was only 8 cents ($.08) in 2010 and now, as of the time of this writing, the price is over 23 thousand dollars ($23,000)!
That’s wild right?
This means that if you had invested $1000 at $.08 in Bitcoin in 2010, that investment would be worth over $287 million dollars today. And that’s if you did nothing but hold the coins and did no trading whatsoever.
Let’s do the math.
$1000 / .08 = 12,500 Bitcoins
12,500 x $23,000 = $287,500,000
Mindboggling!
Sometimes seeing a visual helps to illustrate better what you’re dealing with. The trajectory of the price of Bitcoin from 2012 to 2021 has been less than $0.01 to a high of over $57,000.
As you can see, although there’s been some dips (which is characteristic of trading activity and market influence), Bitcoin has maintained consistent higher lows and higher highs over the course of 10 years.
Let’s see how a 5-year difference would have affected the same $1000 investment outcome.
The price of Bitcoin in November of 2015 was $360.
A significant difference compared to only $.08 five years prior. Your $1000 would only have bought 2.78 Bitcoins, instead of 12,500 Bitcoins.
So, a $1000 invested in Bitcoin in 2015 would be worth about $63,940 today (without any trading).
Is this discouraging?
An article on CNBC points out the findings of a 2018 Harris poll that show only about 5% of Americans owned Bitcoin in 2018.
A more recent Harris poll found that about 1 in 3 Americans are interested in and moving towards conviction regarding Bitcoin in 2020.
The cryptocurrency market, as of November 2020, has a global market capitalization of $510 billion. Additionally, mainstream conglomerates have jumped on the Bitcoin train recently.
For instance, PayPal and Square are adding Bitcoin and other cryptocurrencies to their platforms as alternatives forms of currency exchange. At least 26 million merchants in PayPal’s network accept cryptocurrencies, according to Bloomberg.
Other mainstream examples of Bitcoin’s adoption include trading and banking apps like Robinhood and Revolut, investment companies like Fidelity Investments and Ark Investment Management.
Central banks such as the European Central Bank and the Federal Reserve are exploring avenues on how to digitalize currencies and utilize the blockchain.
More major companies that accept Bitcoin are Tesla, BMW, Microsoft, Overstock, Home Depot, Starbucks, and more.
I would say the answer to this question is — no.
This is my opinion, but how could it ever be too late to invest in something that has shown consistent uptrends since it’s inception?
Citibank projections predict the price of Bitcoin to go up to $318,000 in 2021.
Wow!
So, if you had invested your $1000 in 2015, you’d be holding 2.78 Bitcoins. With an increase to $318,000 that investment would be worth $884,040.
Hey, I believe it could happen.
I’m not so sure if I believe just yet that the price of Bitcoin will actually reach $318,000 in 2021.
But I do believe that it will probably do so within the next five years, just like Bitcoin went from $.08 to $360 in five years. That’s a 4500x increase!
So, if history keeps repeating itself, the price of Bitcoin will continue to increase, particularly since it is now moving into the mainstream.
That, my friend, is for you to decide.
But, I know I definitely am and have been for a couple of years now. I don’t have as much as I would like to have but I am growing my Bitcoin collection consistently. And I’ve earned a lot more than I could have with the stock market.
If you want to learn more about Bitcoin and cryptocurrencies, then I suggest doing some self-study on Google and YouTube, where you can get all the information you need for free.
Just remember if you decide to invest, do so wisely. Investing in cryptocurrency carries some risks, as with any market investments.
Note: I am not a financial professional. This article is not to be taken as financial advice. It is based on my own personal opinions and research.
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