If You Had Purchased $100 of Bitcoin te 2011
Robert Arnott said it best, “Ter investing, what is convenient is infrequently profitable.” The decentralized, peer-to-peer cryptocurrency system called bitcoin puts this voorkeur to the test. The following is how you would have fared across the years if you had bought $100 worth of bitcoin back ter 2011.
2011: Off to a Good Embark
For purposes of this comparison overheen time, the bitcoin market value prices from the CoinDesk Bitcoin Price Index are used, and no fees or extra transactions are assumed, for the sake of simpleness. By buying $100 ter bitcoins on Jan. 1, 2011, you would have benefited from a low market value of 30 cents vanaf bitcoin and received a total of 333.33 bitcoins for your initial purchase.
Since bitcoin traded at 6 cents for most of 2010, you would have timed your initial purchase right. Te this very first year, you would have had your very first taste of the cryptocurrency’s high volatility. For a schrijven uur on June 8, 2011, bitcoin kasstuk a high of $31.91, making the paper value of your investment a cool $Ten,636.56. By December 31, 2011, bitcoin wasgoed trading at $Four.72, so you would have turned your $100 into $1,573.32.
2012: Constant Increase
The very first day of 2012 would have welcomed you with a closing price of $Five.27, bumping up your investment to $1,756.65. Across the very first quarter of 2012, the price of bitcoin dipped below the $Five mark. It began appreciating again te May 2012, and closed at $13.51 on December 31, 2012.
Your current investment would have stood at $Four,503.29. Te 2012, few businesses accepted bitcoin spil a form of payment. For example, bitcoin payment processor BitPay only had 1,000 businesses using its toneelpodium. One of those businesses wasgoed Utah-based Bees Brothers, so you could have purchased 450 half-pound bags of honey roasted almonds for your friends and family.
2013: The Big Rail
Unlike the previous year, 2013 would have welcomed you with a slight dip to $13.30, turning your investment into $Four,433.29. Via most of this year, you would have bot losing sleep overheen the security of your bitcoins. On March Legitimate, 2013, the Financial Crimes Enforcement Network (FinCEN) issued guidelines for individuals using bitcoin te the United States, causing problems for many, including the Mt. Gox bitcoin exchange. The attacks by hackers against several bitcoin exchanges and the FBI seizure of more than 170,000 bitcoins from criminal online portal Silk Road caused the market price to go up and down.
Spil the Chinese media began promoting bitcoin spil an alternative currency and Baidu began accepting the cryptocurrency spil payment for some services, the price of bitcoin kasstuk an all-time high of $1,147.25. Overheen some exchanges it went on to exceed $1,200 on December Four, 2013. Your paper value would have bot $382,412.84. However, bitcoin did not fare well for the surplus of the year, ending at $757.50 by December 31, 2013, making your investment worth $252,497.48.
2014: The Big Downfall
The good news is that unlike previous years, ter 2014, you could have spent your bitcoins at many companies, including Overstock.com, Microsoft, Dell and Time. Paying ter bitcoins offers several advantages, including more convenience ter mobile payments. Also, you could have withdrawn funds through an ever-increasing network of bitcoin ATMs around the world.
However, the bad news is you would have seen your investment druppel and kasstuk a rock bottom value of $309.87 vanaf bitcoin on December 30, 2014. By the end of this year, your investment would have bot worth $106,565.60, or 240 Tribecca Huis Uptown modern sofas at Overstock.com.
2015: Ended Strong
Te 2015, bitcoin displayed a downward trend te price until late October, when the cryptocurrency began trading above $300 again. Spil of December 2015, bitcoin is trading at $413.51, at this point your investment is worth $137,835.29. This is a 137,735.29% come back on your initial $100. The amount is less than half of that all-time high so far of $382,412.84 ter November 2013, but still enough to buy a huis ter Burlington, North Carolina, where the median huis value is $132,000 according to real estate marketplace Zillow.com.
2016: A Nail-Biter
The bitcoin began off at $434.46 on January 1st, 2016, and had a relatively stable very first quarter. Around the end of May however, the bitcoin soared and reached $773.94 by mid-June, the highest since 2014. The steep increase wasgoed due to unexpected Chinese request, which somewhat decreased ter the following weeks pushing the bitcoin back down to $638.22 at the end of the 2nd quarter. Add the end of 2016, your investment wasgoed $257,977.42.
2017: All-Time Highs, And Still Soaring
Ter February, Bitcoin broke its 2013 record and klapper the $1169.04 mark (vanaf Coinbase’s price index). It kasstuk other milestones spil well, surpassing for the very first time the price of one Troy ounce of gold. On May Two, it surged again to $1448. Since May it has continued to climb surpassing price milestones quickly. On November 28, it crossed the $Ten,000 mark and less than 24 hours zometeen it wasgoed trading above $11,000. Spil of 14:Legal UTC on November 29, bitcoin wasgoed trading at $11,321.39 valuing the investment at $Three,773,758.93.
The Bottom Line
Learn about the risks of buying bitcoin, and avoid putting all your investments ter this or other cryptocurrencies. While having bought and held on to $100 ter bitcoin since 2011 would have bot profitable, you would have suffered a loterijlot of stress across the process.
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