You'd struggle to find a better-performing investment.
During the past decade, the S&P 500 and the Nasdaq Composite Index have returned 231% and 335%, respectively, including dividends (as of April 15). This shows that it has been a fantastic time to be a stock market investor.
However, Bitcoin (BTC 3.65%) has absolutely crushed those gains. If you invested $1,000 in the world's oldest and most valuable cryptocurrency in April 2013, you'd be sitting on a balance of roughly $121,000 right now. That monster 12,000% gain is truly jaw-dropping.
There might be no other asset that has performed better than Bitcoin has during the past 10 years. It's been an impressive journey for this top digital asset. Before we assess where it can go in the future, it's important to understand Bitcoin's history.
Bitcoin's past
What was once considered some fake form of internet money that only computer scientists were interested in and aware of has blossomed into a global asset with a market cap of $1.2 trillion. That valuation would make Bitcoin the world's eighth-largest company.
What I find most noteworthy about Bitcoin is that it continues to stand the test of time. There have been numerous instances in the past where its price experienced declines of 50% or more. Critics haven't hesitated to call it a fad that will eventually see its value go to zero. The broader crypto industry has had its own set of issues. And yet Bitcoin has continued marching higher.
An asset that remains relevant over a decade is one thing that caught the attention of investors. But I think education might be the key factor that has propelled Bitcoin. More and more people are learning about its decentralized properties, as well as its fixed-supply cap. These are attractive characteristics for a financial asset to have.
Bitcoin's monumental price rise has paved the way for a budding ecosystem of financial services that support it and make it easier to use. Earlier this year, the Securities and Exchange Commission (SEC) approved spot exchange-traded funds (ETFs) that have opened the capital floodgates. Bitcoin's price has soared 56% just this year (as of April 15), indicating the heightened interest in these regulated financial products and a stamp of approval that Bitcoin has arrived.
Bitcoin's future
I think it would be silly to expect that during the next 10 years, Bitcoin's price could soar another 12,000%. If this happened, the crypto would be valued at close to $150 trillion. Given that global gross domestic product totaled just over $100 trillion last year, that astronomical sum seems highly unlikely based purely on the math.
That doesn't mean this is a bad investment opportunity, though. Even as Bitcoin hovers close to its all-time highs, I still believe investors should consider adding it to their portfolios if they haven't already. The best approach, in my opinion, is to dollar-cost average a small sum of capital into Bitcoin over time. That way you can take advantage of different price points, eliminating the need to correctly time the market.
Bitcoin's fixed-supply cap is perhaps its most compelling trait. There will only ever be 21 million coins in circulation (about 19.7 now circulate). And after this month'shalving, Bitcoin's supply growth rate will be lower than gold's.
This attractive property matters in a world where inflation continues to eat away at the purchasing power of fiat currencies. Bitcoin is a hedge that people can use to store their wealth. Its track record over the past decade proves that it has done a wonderful job at raising one's purchasing power.
Bitcoin is likely to continue doing well in the future, but its future returns won't come close to resembling the past. I still believe it has a good shot at outperforming the S&P 500 and Nasdaq Composite Index over the long term.
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
FAQs
If you invested $1,000 in the world's oldest and most valuable cryptocurrency in April 2013, you'd be sitting on a balance of roughly $121,000 right now. That monster 12,000% gain is truly jaw-dropping. There might be no other asset that has performed better than Bitcoin has during the past 10 years.
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Motley Fool Stock Advisor can be worth it for investors who value the potential returns and stock picks as comprehensive investment guidance. Prospective subscribers should weigh the cost against their investment goals and the potential for portfolio growth.
How much is $1000 in Bitcoin today worth in 2030? ›
Looking at Bitcoin's price history, halvings typically precede higher highs, followed by higher lows. If Bitcoin continues this pattern into 2030, the price could peak around 2029 or 2030. If Wood is correct and Bitcoin reaches $3.8 million, if you invested $1,000 in Bitcoin now, it would be worth $54,280 in 2030.
How much was 1 Bitcoin in 2013? ›
Crypto became more accessible as a result. The price followed the increase in adoption. Opening in 2013 at $13, BTC skyrocketed to breach $1,000 by November 2013.
How much will $50 of Bitcoin be worth in 5 years? ›
After five years, the $50 investment might be worth around $67.20. If the price of Bitcoin were to climb at a rate of 25% each year, the initial investment of $50 might be worth around $129.70.
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The Motley Fool Stock Advisor stock picks are near their record with an average return since inception of 765% vs. the S&P500's 165%. That means that over the last 22 years their stock picks are beating the market by 600% so they are easily quadrupling the S&P500's return.
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How much could $100 in Bitcoin be worth in 2030? ›
Currently, BTC is 34K. By 2030, it's estimated to be around 500K-700K. Simply divide the target price with current price. So your $100 dollars will be worth 1,470.58 dollars by 2030.
What will Bitcoin be worth in 10 years? ›
Bitcoin's Price History
Notably, Cathie Wood, CEO of Ark Invest, predicted that bitcoin could reach an astounding $1.48 million by 2030. Obviously, the world's oldest cryptocurrency has come a long way since its first recorded price of less than a cent.
What is a realistic prediction for Bitcoin in 2030? ›
Wood boldly predicted that BTC could surge 5,837%, reaching a price of $3.8 million per coin, by 2030. Her bullish projection, coupled with the recent resurgence in market sentiment, is igniting excitement among crypto enthusiasts and investors.
However, Bitcoin (BTC -5.31%) has absolutely crushed those gains. If you invested $1,000 in the world's oldest and most valuable cryptocurrency in April 2013, you'd be sitting on a balance of roughly $121,000 right now. That monster 12,000% gain is truly jaw-dropping.
How much would $100 of Bitcoin in 2013 be worth today? ›
Your $100 would have a current value of $323,055. Dec. 16, 2013: This is the year that Bitcoin began its real climb. By December, it was selling for $638, which (at the time) seemed unthinkable.
How much is $1000 in Bitcoin 10 years ago? ›
14. If you had bought $1,000 worth of bitcoin 10 years ago, it would have grown by 7,644% and be worth around $77,443 as of Feb.
What if I invest $100 in Bitcoin 5 years ago? ›
If you had invested $100 in Bitcoin five years ago, you would have bought Bitcoin at the average price of $6,000 (price in mid-2018). With $100, you would have approximately 0.0167 BTC. Fast forward to today, with Bitcoin's current value at around $30,000 (June 2024), your investment would be worth approximately $500.
How much will I get if I put $1 dollar in Bitcoin? ›
1 USD equals 0.000017 BTC. The current value of 1 United States Dollar is +0.60% against the exchange rate to BTC in the last 24 hours. The current Bitcoin market cap is $1.14T. Create a free Kraken account to instantly convert USD to BTC today.
Is it still worth to buy Bitcoin? ›
For that reason, while current market conditions are favorable for anyone considering buying Bitcoin, it is an asset you should purchase only at your own risk. Because while Bitcoin may have the potential for significant returns, you may also lose most of your investment.
How legitimate is the Motley Fool? ›
Motley Fool is definitely a legit investment-advice service that helps you stay on top of trends and conquer the market and it has helped me beat the market since I subscribed. But it's very important to have an understanding of the Motley Fool before signing up.
Which is better, seeking alpha or Motley Fool? ›
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