If you had invested $ 1,000 in bitcoin 5 years ago, here’s how much you would have now | Zoom Fintech
Bitcoin’s value hit an all-time high of nearly $ 20,000 in December 2017. Less than a year later, however, its value has fallen to around $ 6,400, according to digital currency website CoinDesk, whose The Bitcoin price index tracks the prices of several keys. Trades.
Yet even though bitcoin is worth a lot less today than it was at its peak, if you had invested $ 1,000 five years ago, you would have made a profit.
While the value of a bitcoin hit highs of around $ 1,000 and lows of less than $ 600 in December 2013, when the cryptocurrency started to generalize, it hovered around $ 1,000 as of December 2013. Beginning of the month. A bitcoin bought at $ 1,000 would be worth around $ 6,400 Thursday, that’s over six times as much, and your total winning would be over $ 5,000.
This estimate does not include any additional charges or transaction fees.
If you bought bitcoin at its all-time high, close to $ 20,000, $ 15,000 or even $ 10,000, you would have lost money: around $ 13,600, $ 8,600 or $ 3,600, respectively.
CoinDesk: Bitcoin Price Index October 25, 2013 to October 25, 2018
Volatility is quite common for cryptocurrencies. Ethereum, once valued at nearly $ 1,300, according to the digital currency tracker’s coinmarketcap, is now hovering around $ 200. XRP and Litecoin digital currencies saw similar declines.
This is part of the reason seasoned investors say to be cautious when approaching crypto.
Billionaire entrepreneur Mark Cuban and “Oracle of Omaha” Warren Buffett, for example, have both warned that the value of bitcoin is volatile. Legendary investor and Vanguard founder Jack Bogle at a Council on Foreign Relations event told the audience, “Avoid bitcoin like the plague.”
“Bitcoin has no underlying rate of return,” he said. “You know bonds have an interest coupon, stocks have earnings and dividends, [and] gold has nothing. There is nothing to support bitcoin except the hope that you are selling it to someone for more than you paid for it.
More recently, during a congressional hearing on Capitol Hill, global economist and New York University professor Nouriel Roubini said, “Crypto is the mother or father of all scams and bubbles. He called out the “crooks” who exploited investors’ fear of missing out and took them for a ride with “crappy assets that went bankrupt and crashed – in a matter of months – like you don’t have any. never seen in any history of financial bubbles. . “
If you’re considering investing in cryptocurrency, think of it as a trip to Vegas, suggests self-made millionaire and bestselling author Tony Robbins. In his own wallet, Robbins spends a certain amount of money on risky projects, but he doesn’t rely on them to be successful. For those investments, he said, “I know it’s just for the fun of it that I’m investing, I know I might lose.