A Radical Variance Of Crypto Asset ROI For Bitcoin Investors Over The Years
Bitcoin has been on a roller coaster since it was launched. Its prices have soared to unprecedented levels in the past. Unfortunately, they are also currently tumbling at an unprecedented pace. Unsurprisingly, most Bitcoin investors are in disarray.
So, where do investors currently stand, and where would you stand had you invested $1,000 in Bitcoin? Here are the precise figures.
It Depends on Timing
Bitcoin broke through the $100 mark in 2013. This marked the beginning of its rise to the headlines. Prices rose to more than $20,000 in December 2017 and have always been marked by unmatched volatility. However, Bitcoin prices have been on a downward trend since the beginning of 2018, and this has pulled the entire cryptocurrency market into a bear run.
Bitcoin is currently trading at unprecedented lows with prices ranging at $4,000 – its volatility has also seen prices dip below the $3,500 mark. This is worrying considering that support was set at $6,000. It also doesn’t help that notable analysts are predicting even tougher times ahead with some suggesting that the bear market may last well to 2020 with prices dipping to lows of $2,000.
Considering the variance of volatility over the past years, investors’ ROIs would depend on when they invested. Those who invested at least $1,000 back in 2011 are millionaires now. However, those who bought in about 10 months ago are grappling with heavy losses.
Unprecedented Volatility Levels
Bitcoin is perhaps the most volatile security in the overall financial markets. Its prices have risen by about 428,000% since January 2011 – prices have risen from less than a dollar to over $20,000. Unsurprisingly, prices have been falling just as fast with Bitcoin’s value dropping by about 68% since the beginning of the year – this is equivalent to a 4,000 drop in points in the Dow Jones Industrial Average!
Volatility is always good as any smart investor will attest. However, it may prove too risky for Bitcoin investors.
BTC is still changing hands in spite of the ongoing bear market. Those who bought it for $20,000 back in 2017 are regretting their decisions now – many have even given up on the crypto markets. However, some have seen this as the perfect opportunity to invest in the cryptocurrency.
Ric Edelman, the Founder the Executive Chairman of Edelman Financial Services, has a two-edged message for those currently buying into Bitcoin – keep an open mind. As mentioned earlier, there are worries that the bear market may last well into 2020. To this end, those investing in the crypto at the moment should be prepared to hold their coins for several years before getting a good ROI – they should also be prepared to lose their money. Those who stand to profit the most from Bitcoin are early investors.
Bitcoin is having its worst time in many years as it is the biggest casualty of the current cryptocurrency bear market. Investors are counting either profits or losses depending on their time of investment. What’s more, those taking advantage of the bear market to invest are looking at an uncertain future.