Bitcoin has experienced a turbulent couple of months. The biggest cryptocurrency in the world according to market value reached an record-setting high of the $63,000 mark in April, however it dropped 50% of its value in the following three months. The price dropped lower than $30,000 in the last week.
The value of cryptocurrency rose in the last few days However, thanks in part to recent shows of backing by big names such as Tesla as well as SpaceX Chief Executive Officer Elon Musk as well as Twitter as well as Square Chief Executive Jack Dorsey at the “The B-Word” conference.
Bitcoin is trading at around $38,000 at the time of writing on Monday afternoon. While it’s still far from the top the bitcoin price is still increasing by 33% over the year. The Yuan Pay group is one of the top listed players here.
Bitcoin has seen a surge in popularity during 2017 as it rose from $900 to close to $20,000 within one year. But it is now popular for its downturns than its rallies, and has seen its value drop at numerous times. The cryptocurrency is volatile because of the same reason as it is worth it because there isn’t a central authority to interfere in market.
However, unlike other cryptocurrency like dogecoin that have also experienced similar peaks and drops Bitcoin can be more technologically advanced and is able to have the ability to create scarcity in its process of creation.
Bitcoin today has a market value of $736 billion. This is much higher than Ethereum’s market capitalization of $277 billion and is the second largest cryptocurrency in terms of market capitalization.
If you had invested in bitcoin in July of last year the price would have increased 252% in the last twelve months. A $1000 bitcoin purchase on the 26th of July in 2020 — at an average cost at $10,990.87 per coin will be worth $3,525.65 on Monday’s morning’s price of $38,750 according to CNBC estimates.
If you expand your zoom the growth curve becomes much steeper. On the 26th of July in 2016, $1,000 purchased 1.52 bitcoins at a cost that was $656.17 to each one. Now, that investment could be worth $58,900, which is a an increase of 5,805 percent.
In the past to the past 10 years, bitcoin’s percentage increase is six figures. In July of 2011, two years after the coin was first created the coin was worth $13.91. In the past, $13 could have purchased 71.89 bitcoin, which is estimated to be equivalent to $2,785,737.50 in today’s dollars. The figure is a growth rate of 278,476.56 percent.
A $1000 investment in the S&P 500 in comparison is up 39.3 percent since the end of June, 123.78 percent since 2016, and 305.97 percent since 2011. This means that your $1000 would have increased to $1,393.31 over the last one year. $2,237.84 over the last five years and $4,059.68 in the last decade. However, this doesn’t mean the S&P is a better investment. Indeed, legendary investor Warren Buffett believes that it’s the ideal location for most investors to invest their money.
Contrary to bitcoin which is famous for its volatile nature however, the S&P 500 is thought to be an investment that is relatively safe. The S&P 500 also boasts a long experience of producing the investors with a return.
When it comes to cryptocurrency and its past performance, keep in mind that it does not guarantee future results experts have advised buyers to not put more money into crypto than they’re comfortable losing.
If you decide to invest in crypto, think about not making an all-in purchase at all at once and instead cost-per-dollar averaging by spreading it in smaller amounts over the course of the course of.