Monday, May 15, 2017

Bitcoin has emerged as one of greatest investments of all time over seven year period if investors got in early

There is a reason why the equity markets are known as the 'risk trade', because no one truly knows if a particular stock or company will succeed or fail before these stocks become spoken of regularly in the mainstream.  In fact one of the key indicators of a stock's success is often whether it gets picked up by mutual fund managers as part of their clients investment or retirement portfolios.

Yet outside of bonds and real estate, virtually any investment can be labeled as a risk trade, especially in this era where fundamentals and technicals no longer play a significant role in their future price.

And unfortunately for the average Joe investor, they rarely receive the proper guidance or advice about potential life-changing investments from their broker unless that professional has a personal stake in a particularly risky investment scheme.  And because of this, the majority of individuals missed out on perhaps one of the best investments of all time when the price was sitting at approximately .09 back in 2010.

And what was that investment opportunity that has seen its price rise from just .09 to just under $1800 per?  The answer of course is Bitcoin.

On May 13, StockTwits, the world’s largest financial communications platform for the investing community, revealed one of its users’ growth chart comparing various currencies, bonds and assets. In it, a StockTwits user by the name of Charlie Bilello noted that a $10,000 investment in Bitcoin made in July 2010 would have earned investors a $200 mln return. 
To be exact, a Bitcoin investor who purchased $10,000 worth of Bitcoin in 2010 would have earned $201.56 mln. - Coin Telegraph
Assuming an individual had invested $10,000 back in 2010, they would have been able to purchase approximately 114,793 Bitcoins.  And with today's current price at around $1754, that would equate to an estimated value of $201,560,000, or 20,156x roi (return on investment).

Now compare this to what is considered to be the top all-time ROI of 1300x when John Grey invested $10,500 into the fledgling Ford Motor Company in 1903 and you can see this example pales in return to what someone who invested a similar amount in Bitcoin today would have earned.

In the end it is nice to dream about the what ifs when it comes to missing out on a diamond in the rough, but the fact of the matter is very few actually saw the potential of Bitcoin during the first few years of its existence.  But for those who did, and who did not sell a few years back when it had its first big jump to just over $1100 per bitcoin, it has become a lucrative and life changing investment with an even greater potential now of succeeding into the future.

Yet at $1745 per Bitcoin today, who has the stomach or the available cash to invest in it now that it is once again near its all-time high?  Thus it remains as it was back in 2010... a risk trade with great potential for massive gains, or massive losses.

0 comments:

Post a Comment