Last week, Bitcoin celebrated its seventh anniversary of its first noted time being used in a real-world transaction. Throughout these 7 years, the value of Bitcoin has significantly increased and now the value has multiplied 879,999 times. This means that five dollars spent on 2,000 Bitcoins 7 years ago would be worth $4.4 million today. If an investor had decided to spend $1,200 on 480,000, that would lead to a value of $1.1 billion today.
Bloomberg interview with Bill Gates. “Bitcoin is the answer.”
At its initial introduction, Bitcoin struggled to catch the investment of users. As businesses and governments gradually started accepting it as a payment method, the value of Bitcoin saw a steady increase. By early 2017, the name had caught on and having a decentralized currency drew in more attraction as a safe-haven asset. Since it is decentralized, meaning it does not have a central bank or government to control it, there is freedom for investors in an otherwise complicated geopolitical world. Another advantage of Bitcoin is that there is a limitation to how many Bitcoins can be created/printed. As a result, the rule of supply and demand in economy is perfectly balanced. With a limited supply and increased demand, there has been a rise in price. As a result, Bitcoin has spiked even further and gained popularity in other countries, such as Japan.
Wences Casares, a leading supporter of Bitcoin recommends investing now. He says even investing with 1% or less of what you own could lead to major profit. It is estimated that that the chances of success are greater than that of failure. If it goes downhill, there is not much of a hit. But in the chance of success, the earnings are huge. By 2030, experts predict one Bitcoin will be worth $500,000.
Casares has gotten numerous billionaires involved with Bitcoin. For example, at the annual gathering for the elite in Sun Valley, he got Bill Clinton and Reid Hoffman into Bitcoin. Bill Gates has since said, “Bitcoin is better than currency.”
As with any investment, the greatest earnings are when you are able to buy low so you can reap greater benefits in case of the value increasing over time. However, that does not mean you should stay out of the game in case you are looking to enter a bit later. Casares has seen some people buy Bitcoin at cheap prices and lose money due to trading, and others buy at higher prices later in the game but performing well due to their decision to buy and hold.