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Bitcoin is back to him. On Thursday, the cryptocurrency rose to a new level, exceeding the $ 48,000 level, according to CoinDesk data.
Even though the asset was extremely volatile, its long-term holders made incredible gains.
For example, if you invested in bitcoin when it was first launched in 2009, your returns could be endless because the initial value of the asset was $ 0.
“Theoretically, you could get unlimited bitcoin and then have infinite dollars,” said Daniel Polotsky, CEO of CoinFlip, one of the largest ATMs in the United States.
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“It’s certainly the best performing asset of the last decade,” he said.
If you bought bitcoin a little later and kept the asset going up and down, you would still see remarkable benefits from the initial investment.
Millions of earnings
Say you came into play when a bitcoin was 10 cents, around October 2010. If you had invested $ 100, you could have bought about 1,000 Bitcoin.
At its all-time high on Thursday, the 1,000 Bitcoin would have been worth more than $ 48 million, not counting the composition and assuming you bought and owned the asset all the time.
To be sure, it is a long time to hold an extremely volatile asset, which means that the group of people who invested so early in bitcoin and largely kept their investments is small, Polotsky said.
And while there are many stories of extreme earnings from those invested in cryptocurrencies, there are many who have lost just as much money by buying and selling the turbulent asset at the wrong time.
In addition, investors who have held bitcoin for so long have had trouble earning incredible earnings due to technical issues – some have forgotten their digital wallet passwords, meaning they have only a few attempts to access the funds before to be blocked. out forever.
However, Bitcoin has gone through an incredible trajectory that has surpassed other investments. So far, in 2021 alone, the cryptocurrency has grown by more than 63%, after quadrupling in value in 2020.
Which determines these returns
Most recently, the price of bitcoin has been determined by high quality support. On Thursday, Bank of New York Mellon said it would provide custody services for digital assets, citing growing customer demand.
Earlier this week, Mastercard also said it would start offering cryptocurrency support on its network this year. And on Monday, Tesla announced that it had bought $ 1.5 billion bitcoin and would soon begin accepting the currency as payment.
And, even though the cryptocurrency has shown its brand volatility in recent weeks, long-term bitcoin bulls see even more returns in the future of the asset.
Mike Novogratz, CEO of Galaxy Digital and a well-known cryptocurrency bull, said in November that he sees bitcoin rising to $ 55,000 or $ 60,000 by the end of 2021 as it continues to replace gold. Tyler Winklevoss, another bitcoin bull and crypto-exchange co-founder Gemini, said he could see the asset reach $ 500,000 a day.
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Disclosure: NBCUniversal and Comcast Ventures are investors in acorns.