Since its inception in 2009, Bitcoin has seen some extreme ups and downs. As in much of the cryptocurrency market, Bitcoin is a volatile asset. But if you are lucky enough to time your purchase right, it’s possible to enjoy some big returns from Bitcoin.
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Explore how much you would have now if you bought a Bitcoin in the past. Plus, some other ways to build wealth if you are starting now.
How Much Would You Have If You Bought A Bitcoin
Bitcoin burst onto the scene in 2009. Between 2010 and 2020, the value of a Bitcoin soared by 9,000,000% according to CoinDesk. Although many of us hadn’t heard about Bitcoin back then, some investors were already building a crypto portfolio for the long term. Below is a look at how much you would have if you bought a Bitcoin at various points throughout the crypto’s history.
1 Year Ago
As of November 21, 2024, a single Bitcoin is worth $98,191.94. One year ago, a Bitcoin was worth $35,787.93.
If you bought a Bitcoin one year ago, your investment would have grown by $62,404.01 in a single year.
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5 Years Ago
On November 24, 2019, Bitcoin was worth $3,899.06. If you purchased a Bitcoin back then, your investment would have grown by $94,292.88. That represents a growth of over 2,300%.
Of course, the catch is that you needed to have stayed the course through the highs and lows of the Bitcoin market. After peaking at a value of around $60,000 in 2021, prices fell back to around $16,000 in 2022 before ultimately climbing back to the current high. Many investors wouldn’t feel comfortable hanging onto the current during such dramatic volatility. But some did, and they are reaping the rewards of hanging on for the long haul.
10 Years Ago
Back in November 2014, a Bitcoin was worth $378.05. If you bought a Bitcoin a decade ago, your investment would have grown by over $97,000!
Again, hanging onto the currency for that decade would be a wild ride. But if you could stomach the ups and downs, you’ve seen eye-watering investment returns.
15 Years Ago
If you bought Bitcoin when it first came out in 2009, you would find a price of $0.00099 per coin. Essentially, if you bought back then and held on until now, you’d have seen your investment grow to $98,000+.
Although this astronomic rise would require a lot of lucky timing, that kind of investment could completely transform your life.
Other Ways To Build Wealth
It’s impossible to turn back the clock and purchase a Bitcoin several years ago. But it is possible to start building wealth today. As you build out an investment portfolio, adding cryptocurrency could be a part of your overall plan. However, it’s not the only asset most experts advise investing in. In fact, many financial experts recommend keeping crypto as a relatively small percentage of your overall portfolio due to the extremely volatile nature of the asset.
Below are some other assets to consider as you build out an investment portfolio:
- Index funds. Index funds allow you to invest in a large swath of the stock market with a single fund. If you are looking for a way to build wealth over the long term, index funds might be the right fit.
- Individual stocks. An individual stock might fit into your portfolio, especially if you believe in what the company has to offer. If possible, avoid going all in on a particular stock. After all, you might not want to put all of your eggs into one basket.
- Real estate. Real estate investing allows you to tap into tax advantages and the competitive housing market. If you aren’t interested in becoming a landlord, consider investing in real estate through REITs.
- Other cryptos. Bitcoin is the original cryptocurrency. However, it’s no longer the only cryptocurrency on the market. For investors who can’t stomach the price of Bitcoin, consider other cryptos, like Ethereum.
Many experts agree that the correct asset allocation is a critical component to the success of your investment portfolio. If your investment portfolio is too heavily weighted in one asset class, the lack of balance could put your financial life into a tailspin during certain market fluctuations. Take the time to learn about asset allocation and build out a portfolio that aligns with your goals. That may or may not mean including Bitcoin in your portfolio going forward.
Takeaway
Bitcoin has seen incredible increases in value over time. If you were lucky and brave enough to buy Bitcoin early, you may have seen your investment pay off in a big way. But for those who missed the beginning of Bitcoin, it’s not too late to build out a blossoming investment portfolio.
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This article originally appeared on GOBankingRates.com: What You’d Have Made Off A Single Bitcoin If You Invested 5 Years Ago
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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