Do you know what a $100 Bitcoin investment, made in 2011, would be worth, RIGHT NOW? The answer to this question is pretty incredible. In the beginning, I myself thought that the monster coin was worthless. Why did I think that? Because it WAS pretty much worthless!
Guess what! It's STILL worthless today!
At least, if you don't own any...
Today, after a bear-market (descending price) that lasted over a year, the markets are finally showing life. Price appreciation has begun, again. In 2018, I first became aware of Bitcoin. I know, I was really late! Even so, I caught up with it at the end of the last bull run when price hit over $14,000. I introduced myself to margin trading, and proceeded to make almost $1000 off of a $20 investment! It was incredible, but I didn't know what I was doing. I learned how to trade during a bull run (price increase or appreciation.) When the bull was over and the bear reared it's ugly head, I was not prepared.
Don't worry, I'm still gonna tell you what $100 worth of Bitcoin in 2011 would be worth, today. Keep reading. :)
I want to veer a little from this, for just a moment.
Some would say, that investment in crypto is a faulty idea. Smart investors usually say that it is only viable or safe to buy into something that produces an actual product. They would say that investments should only be made into things that are needed, like food, clothing, construction, ect.
In a sense, they are right. Some of these investors deem Bitcoin and other cryptocurrencies bad investments, because they say that they do not sell actual products. Complicating matters further, the U.S. government ruled cryptocurrencies as being securities because they are not backed by a central bank with a stable underlying value.
Are their thoughts well-founded?
Cryptos are relatively new in the scope of history. Very, new indeed. So, of course people are scared of them. We don't have enough data to predict them, and so some of those investors have cold feet. I want to ask you a question though. Do you mind?
Does Bitcoin offer something of real value?
Companies like Starbucks, many different hotel chains, even restaurants and many large corporations are beginning to accept them. Why?
Let's ask ourselves another question. What is money?
Back in the day, we were a bunch of dirt farmers, seamstresses, blacksmiths, maybe even orange farmers. That's right! Somebody had to farm 'dem oranges! MMMhhhmmm, yummy oranges!
Some other guy was a sheep farmer.
Before the invention of money, how did the sheep farmer get what he needed?
Let's say the sheep farmer needed some beans to make soup. He would have to go to a bean farmer. The bean farmer always needed the sheepskins that the sheep farmer had to offer, because he used them to bag up his beans. Whenever the sheep farmer needed beans, he would just take some sheep pelts to the bean farmer, and VOILA! Beans-galore!
But what if the sheep farmer, wanted oranges?
The sheep farmer takes his pelts to the orange farmer, and the orange farmer turns him away.
"I don't need your nasty pelts!" He says, to the sheep farmer, who is in need of an orange.
The sheep farmer returns to his family, orange-less. :( Poor sheep farmer.
The problem of the sheep farmer, is the problem that is solved by MONEY. This is because money, is nothing but a way of transporting value. Money, itself then becomes valuable, because of the efficiency that it brings to trade.
Is it valuable, to be able to move money across the planet for a fraction of the fees that the old fiat banking systems would charge us?
HELL YA IT IS!
Especially, on the large scale. What does it mean if large business can send money for a fraction of the cost worldwide? How could they NOT see it as an asset! Over time, the technologies that cryptocurrencies use can save them millions and in some cases billions of dollars! Like I said earlier, these big companies are starting to wise up. As more and more of them do and the value seen in the efficiency of this decentralized money-moving technology is accepted, I believe it's price should only become higher with it's appreciation. This is because NO MORE BITCOINS are ever being minted. As the demand rises, so will the price. The system is mechanically designed to increase based on the laws of SUPPLY-AND-DEMAND.
Supply-and-demand, is a well known concept. It has been studied for much longer than cryptocurrency markets, and is much easier to understand. The more demand, the more the appreciation of price. This means that the more businesses see the value in this technology, the more scarce it will become, and the more it will cost to buy it.
So, to answer the question that was asked at the beginning of this article....
...How much would $100 of Bitcoin, bought in 2011, be worth TODAY? Somewhere around $3.5 million dollars!
Starbucks sees it, car companies see it, the government sees it. The banking companies that are scrambling with offers for people to open up checking accounts see it (like Chase bank, who was offering $200 free just for opening one and another $300 for opening a savings.) Hotel chains see it, Domino's pizza saw it, all the way back at the beginning... How much evidence to we need?
Is it becoming any less efficient to move money using crypto? NO, so why would the value disappear?
My point is, the body of evidence keeps growing, and that you should do your own research. I'm excited for this next bull-run though, and I know where I will be trading. Like I said, the last bull-run that I traded in, I made $1000 off $20 bucks! Don't get me wrong, there is tons of risk in trading and especially in margin trading! KNOW THAT and know it well.
We can, however, minimize our risk, by educating ourselves.
First, learn something called Elliot Wave Theory. It is a good start. Elliot Wave Theory was developed before digital trading was an option, and has been tried and true in studies ever since. Every professional trader knows this stuff, so read up, and you could make a killing, too!
Second, when you invest, hedge your investments by investing in many different things, rather than in just one. This helps to minimize risk and maximize profitability. My favorite trading platform allows a person to trade Forex, Nasdaq, prospects (like gold and oil) and crypto all at the same time. That means we can be trading Australian dollars against Japanese Yen, at the same time as we trade Bitcoin against Ethereum if we want!
I wrote an article called Over-the-Hedge that is sort of a guide to effective margin trading. You may find it an enjoyable read, as well as educational and humorous. Please, don't be offended when I talk about your grandmother.... I mean no offense.
Anyway, I hope this information helps you, if you are interested in trading or want some information about the value of Bitcoin or if you are desiring to learn trading for profit. :)
Disclaimer: I will not be liable for the results of any actions that you may take in lieu of the information that I have presented. Investing involves risks, and it is your responsibility to know those risks before you engage in any trading. These are my honest opinions and accounts, but they are only meant to share with you, not to create action. I hope that it benefits you, but if it does not, it will not be my responsibility!