Cryptocurrencies like Bitcoin are ‘apolitical’ says financial expert
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Bitcoin has gathered momentum and increased in value considerably since its invention over a decade ago. Buying into the digital currency in the past ten years could have meant huge returns for investors.
Historical figures show just how much profit could have been made from a $1,000 (£719.77) investment in Bitcoin, if the investor had held on to their currency until now.
A purchase worth $1,000 (£719.77) on July 26, 2020 at a price of $10,990.87 (£7,900) per coin would have been valued at $3,525.65 (£2,537.67) on July 26, 2021.
Going back five years to 2016, $1,000 (£719.77) would have bought 1.52 bitcoin at a price of $656.17 (£472) per coin. Last Monday, the value of that investment would have been $58,900 (£42,400), which would mean a growth of 5,805 percent.
A decade ago in 2011, Bitcoin was valued at just $13.91 (£9), meaning an investor could have purchased 71.89 Bitcoin with $1,000 (£719.77). That would now be worth $2,785,737.50 (£2,005,104.21) today.
Investing in Bitcoin could have netted you big returns (Image: GETTY)
That eye-watering figure represents a growth of 278,476.56 percent.
Bitcoin is the world’s biggest cryptocurrency, with a market cap of almost $750 billion (£540 million).
However, it is not the only digital currency available for investment, with Ethereum, Tether and Binance Coin also popular choices.
It was invented in 2008 by a person or an unknown group of people known as Satoshi Nakamoto.
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Cryptocurrencies are famous for their volatility, with prices soaring and plummeting regularly.
In the case of Bitcoin, this is partly due to the fact that there is a limited supply of the currency and there is no central bank controlling that supply.
The fact that Bitcoin is so scarce is what makes it valuable, but it also contributes to these fluctuations.
The scale of Bitcoin’s growth in value since its invention is truly remarkable.
The cryptocurrency was valued at just one cent in May 2010, before gaining parity with the US dollar in 2011.
By November of 2013, its value was $1,242 (£894), and it continued to grow exponentially in the following years, breaking the $5,000 dollar mark in September 2017.
Just over three months later, Bitcoin’s value shot up to over $19,700 (£14,100), which at the time was an all-time high.
Between 2017 and 2021, the cryptocurrency experienced a fall, all the way down to $3,300 (£2,400), before rebounding and reaching another all-time high of a whopping $60,000 (£43,000) in April of this year.
Playing a part in the 2021 price surge was Elon Musk and Tesla’s announcement that they would be investing in Bitcoin and accepting it as payment.
However, just a month after reaching a $60,000 valuation, the currency’s value was cut in half, down to $30,000.
Bitcoin holdings, as well as new regulations from the Chinese Government cracking down on crypto.
These drastic changes in the value of Bitcoin over the years demonstrate the danger of investing heavily in cryptocurrency.