If you think the stock markets surge has been impressive, wait until you see how Bitcoin has done.
Bitcoin’s rise has certainly been remarkable. In just 12 years, this cryptocurrency has risen from no monetary value to over $ 60,000 for a short period of time. And for investors who got in and held out in the early days, the returns have been absolutely remarkable.
We can’t go back in time, of course, but it can be fun to look at the amount of money those who are forward-thinking are making to break into the ground floor of successful investments.
So here’s how much you would have if you bought Bitcoin a decade ago, before most people had an idea of what a cryptocurrency is.
The short answer
In early May 2011, Bitcoin was trading for around $ 3.50 (that’s not a typo). So $ 1,000 would have bought roughly 286 bitcoins without the transaction costs. As of April 27, 2021, Bitcoin will trade for $ 54,680.
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That means 286 bitcoins would be valued at roughly $ 15.6 million today, assuming you kept pegging them for the past 10 years.
It’s important to note that the last sentence is a big assumption. If you had been lucky enough to dip into your savings and buy a few bitcoins at $ 3.50 each, would you have been tempted to sell when the price hit $ 100 for the first time? What about when it broke through $ 1,000 for the first time? Or the first time it dwarfed $ 10,000? Many investors who got into Bitcoin in its early years have sold at least some of their positions on the way up.
A timeline of bitcoin prices
Speaking of major milestones Bitcoin has achieved over the years, here is a brief history of its prices.
- Bitcoin’s network came into being in 2009 when the first Bitcoin block was mined on January 3rd. However, until at least 2010 there was no monetary value or market for Bitcoin. In fact, in March 2010, an early adopter attempted to auction 10,000 bitcoins for $ 50 (total) but couldn’t find a buyer.
- The first real bitcoin transaction took place in May 2010, using 10,000 bitcoins to pay for two pizzas, with each bitcoin valued at a fraction of a cent. Today the value of that amount of Bitcoin would be nearly $ 550 million.
- Bitcoin first crossed the $ 1.00 threshold in February 2011, a little over a decade ago.
- Bitcoin’s first major surge in popularity was in 2013. Prices soared as high as $ 1,242 this November before pulling back.
- The second major surge occurred in 2017. The cryptocurrency broke its previous 2013 high of $ 1,242 in March and hit as much as $ 19,783 in December of that year before pulling back.
- After 2017, interest in Bitcoin declined over a period of time. The price hit a low of $ 3,300 in December 2018 and didn’t break through its 2017 high again until November 2020.
- Bitcoin first crossed the $ 50,000 threshold in February 2021 and briefly broke through $ 60,000 in April.
Will there be $ 100,000 in Bitcoin anytime soon?
If there is one important aspect, digital currency is very unpredictable. Bitcoin has seen two big spikes without considering the current surge. And each time it has pulled back significantly, taking several years to dwarf previous highs.
It is entirely possible that in a few months or even sooner we will see $ 100,000 bitcoin. However, it’s important to know that $ 10,000 or less is very possible too. If you decide to buy Bitcoin at the current price level, you should do so keeping in mind its volatile and unpredictable nature.