One of the aspects that attract people to cryptocurrencies is their returns in thousands of percent in the relatively short-term period. Other elements as a technology that is behind it, the so-called blockchain, anonymity, the speed of payments and low-cost payments attract people to cryptocurrencies. Not a lot of people know, but the first value of Bitcoin was 1309 Bitcoins for $1 in October 2009 and this rate was derived from the cost of electricity used by a computer to “mine” the currency, but at that time there was no exchange to trade Bitcoin at.
source: https://www.fool.com/investing/2017/12/15/think-2017-is-bitcoins-best-year-think-again.aspx
First bitcoin exchange opened in March 2010 and the first cash value of bitcoin on that exchange is reported to have been $0.003. Later in May 2010, there was a pizza delivery made which cost $25 and they paid 10 000 Bitcoins which makes it around $0.0025 per coin. At the end of the year 2010, the price of Bitcoin was already $0.29 which makes the return of 9 567%.
The year 2010 was the most rewarding for holders of Bitcoin as it was the year with highest percentage return. The second most rewarding year by percentage growth was 2013, where Bitcoin grew by almost 6000% to $817.12. Then there is the year 2017, which is the third highest growth that Bitcoin made in a year since its inception, but year 2017 was the best performing year in terms of dollars, as it added roughly $16 000. The only losing year Bitcoin have ever had was 2014, where it ended that year with a loss of value about -63%. With a current price of the Bitcoin, it is millions of percent returns and this cycle of the market going up, down and up over again is repeating itself for almost 10 years, meaning from the creation of Bitcoin.
For example, buying $100 worth of Bitcoin on July 28, 2010, would be worth in December 2017 around $28 341 266. Investment of $100 at the end of 2011 would be worth approximately $533 065 in December 2017. Investment in yearly 2017 with $48 000 would be worth $1 000 000 at the end of the year. That means buying 49.78 Bitcoins at then price of $963, meaning a total investment of about $47 938. When the cryptocurrency peaked at price on December 17 and was worth about $20 089, the 49.78 Bitcoins would have been worth $1 000 000, but this story continues. If bitcoins were not sold in December 2017, worth of that investment would be just over $400 000 At the beginning of February 2018. Still a good return, but a virtual loss of $600 000 in less than two months. This blog is not about whether this is going to last forever or not, but to point out that Bitcoin and other cryptocurrencies are from the short-term view (few years) the best performing assets that ever existed.
Source: https://99bitcoins.com/price-chart-history/
This is the chart of Bitcoin and its way from 1309 Bitcoins for $1 to $20 000 for 1 Bitcoin. Some people agree on the fact that Bitcoin is the best store of value ever created. No asset was able to make returns of millions of percent in one decade ever in human history. Bitcoin is one of the most intriguing assets and blockchain the fastest growing industry in the world.
