How Much Would I Have Earned if I’d Invested $100 in Bitcoin? (2024 Edition)
Bitcoin is a digital currency that’s gained significant popularity over the past decade, becoming almost synonymous with cryptocurrency. It’s often seen as a good store of value and remains the most valuable cryptocurrency in the market.
Since its introduction in 2009, Bitcoin’s price has experienced a hair-raising rollercoaster. Bitcoin’s price started at $0, but by 2011 it had pushed past $1, and exceeded $100 by mid-2013. After some alternating highs and lows, it hit its first milestone of nearly $20,000 in 2017. However, Bitcoin’s subsequent crash in December of the same year sent its price dipping briefly below $11,000.
The 2019 pandemic had an impact on Bitcoin, pushing its price below $6,000 in March 2020. Then, in a stirring comeback, BTC’s value jumped to an all-time high of around $69,000 in November 2021.
However, the 2022 crash set in motion by Luna’s downfall and further devastation resulting from FTX’s solvency caused Bitcoin’s price to bottom out at around $15,000 in November 2022. Bitcoin began its gradual recovery in 2023, with a significant boost in late November due to speculation about potential approval of a Bitcoin spot ETF. The subsequent approval of several Bitcoin spot ETFs in early January 2024 led to a roaring rally as BTC peaked at over $46,000.
Despite the wild ride, many investors in the crypto market remain interested in Bitcoin investments, with many wondering what would have happened if they’d invested $100 in a single Bitcoin at different points in its history.
In this article, we’ll explore the outcome of such an investment and discuss whether or not 2024 is still a good time to invest in Bitcoin.
Key Takeaways:
Despite the recent SEC approval of Bitcoin spot ETFs, Bitcoin remains a volatile investment asset with no guaranteed increase in value over time.
To mitigate the impact of market volatility, consider implementing a dollar-cost averaging (DCA) strategy to spread investments over multiple time points.
Bitcoin's price may potentially stabilize in the long run, influenced by factors such as increased regulation and adoption.
What if I’d Invested $100 in Bitcoin in 2022?
The value of Bitcoin in 2022 saw significant fluctuations, peaking at $46,285 in February and dropping to a low of $15,742 by November. The value of your investment would have varied significantly, depending upon when you made your purchase.
If you’d invested $100 in BTC at its peak price in 2022, your investment would have fallen by more than half at its low to $34.01. But if you’d chosen not to sell your BTC and held it till today (Feb 6, 2024), with Bitcoin’s price at $42,712.72, your $100 would be worth $92.28.
Meanwhile, if you’d chosen to invest $100 during Bitcoin’s dip to $15,742, your investment would be worth $272.33 today — meaning you’d have earned $172.33.
What if I’d Invested $100 in Bitcoin in 2023?
2023 is the year when Bitcoin started to recover from the 2022 crash. It began with a slightly higher price than 2022’s low of $15,742, at around $16,674. In just a month, investor confidence grew, and BTC’s price rose to $24,284 by February. April saw another peak at $30,405. From then on, Bitcoin’s price fluctuated between $25,000 and $30,000 for several months until October. The rally started in October, as Bitcoin’s price skyrocketed to $44,202 in December.
If you’d invested $100 in Bitcoin at the start of 2023, in just one month, your $100 would have grown by over $40 to $145.63, and by April it would have reached $182.35. When Bitcoin hit its December high of $44,202, your $100 would be worth $265.10. And if you’d continued to HODL your Bitcoin investment until today, you’d have earned a total profit of $156.19.
Investing $100 in Bitcoin in February would have earned you $25.21 by April and $82.02 in December. Today, your $100 would be worth $175.89, making your total earnings $75.89.
If you were late into the investment game, and joined in December when BTC hit its highest price for that year at $43,042, you would have made a slight loss of around $0.75 today.
What if I Invest $100 in Bitcoin Today?
Whether Bitcoin's price skyrockets is subject to the economy’s macro and micro factors, such as market supply and demand, regulatory developments, hype, investor sentiment and technological advances.
While Bitcoin may have had a strong start this year, thanks to the Bitcoin spot ETF approvals in early January, it’s still impossible to predict whether 2024 will truly be an excellent year for crypto investments. However, most analysts foresee value growth, mainly from the expected deflationary effect of the next Bitcoin halving, which will occur in April 2024.
Additionally, Bitcoin's recent technological advancements, which have created Ordinals and BRC-20 tokens, might lead to increased demand as Bitcoin evolves from a mere store of value to a payment method. As its utility expands and overall adoption increases, Bitcoin’s price will likely rise.
Not all industry watchers are bullish about Bitcoin, however. Some predict its value may fall as low as $10,000, due to concerns about its environmental impact, which have led to the proposal of a digital asset mining energy (DAME) excise tax in the United States in 2024 at a rate of 10%, which could rise to 30% by 2026.
While the introduction of Ordinals on the Bitcoin blockchain may help generate sustainable fees in the long run, some experts assert that Ordinal inscriptions will only cause congestion on Bitcoin’s network.
The wildly opposing views of experts demonstrate that Bitcoin still remains a highly speculative investment, despite the trend toward increasing regulation. While there are Bitcoin evangelists who strongly believe in its potential, there are also those who are skeptical of or opposed to Bitcoin and its adoption. Diversifying your investment assets may not be a bad idea if you have excess cash reserves overall.
What Will $100 in Bitcoin Be Worth in 2030?
ARK Invest CEO Cathie Wood is incredibly bullish on Bitcoin’s future, following the SEC's approval of Bitcoin spot ETFs. She has predicted Bitcoin (BTC) will hit a price of $1,500,000 by 2030 in a bullish setting, and still exceed its current all-time high price to reach $258,500 in a bear market.
Nevertheless, most other financial experts are more conservative on the future of Bitcoin’s price growth. Digital Coin Price anticipates Bitcoin will hit a minimum of $288,457.07 and a maximum of $320,603.40 by 2030. Price Prediction is more bullish, expecting Bitcoin to reach a high of $590,158.57 and a low of $477,127.53.
Is Investing $100 in Bitcoin Sufficient to Profit in the Long Term?
It’s difficult to predict with certainty whether or not investing $100 in Bitcoin will yield a profit over the long run. The king of cryptocurrencies has proven notoriously volatile, and isn’t guaranteed to increase in value over time. Potential investors must be aware of the risks associated with investing in Bitcoin and approach doing so cautiously.
However, using a dollar-cost-averaging (DCA) investing strategy potentially allows investors to profit from their Bitcoin investments over the long term. This is because DCA softens the impact of market volatility and enables you to buy more BTC when prices are lower, which can reduce the average cost of your investment.
Will Bitcoin's Price Stabilize?
As mentioned before, many factors influence the price of Bitcoin. Still, some experts believe that as adoption increases and its infrastructure improves to fit the users’ criteria, Bitcoin’s price will likely stabilize. Here are some reasons that could contribute to the price stabilization of Bitcoin over time:
Increased adoption and use: As Bitcoin becomes a mainstream currency, it means a higher demand for the asset to be used as a medium for transactions.
Improved market infrastructure: A more robust and efficient crypto market infrastructure, such as cryptocurrency exchanges and payment systems for users to on-ramp and off-ramp Bitcoin, can help reduce price volatility.
Increased regulation: Government regulations can provide greater clarity and stability to markets, and help reduce price volatility.
Increased market liquidity: An increase in the number of buyers and sellers participating in the market can increase liquidity, which can in turn help to stabilize prices.
Economic and market conditions: Stabilization of economic and market conditions can contribute to price stability, thereby reducing uncertainty and risk for investors.
Tips for Investing in Bitcoin
If you’re considering investing in Bitcoin in 2023, there are a few things to keep in mind in order to better increase the return on your initial investment.
How to Choose a Reliable Crypto Exchange
One of the most important considerations when investing in Bitcoin is choosing a reliable cryptocurrency exchange. Historically, this became even more pertinent following the disastrous collapse of Mt. Gox and, more recently, FTX. Devastated investors saw their life savings vanish overnight in 2014 as over 800,000 Bitcoins were stolen from the Mt. Gox exchange in the now infamous hack.
FTX, another major exchange, collapsed in November 2022 after CoinDesk reported alleged malpractice, raising doubts over the exchange's solvency.
These catastrophic incidents highlight the importance of choosing the right place to invest and store your Bitcoin.
Choosing a reputable cryptocurrency exchange involves looking for one that has an associated physical address, offers unparalleled security and complies with relevant regulations. One such trustworthy exchange is Bybit, a Dubai-based exchange committed to user security through its multiple security measures, such as triple-layer asset protection and real-time risk monitoring.
One tip to remember when searching for a reliable exchange: Always research extensively and read other users' reviews before choosing an exchange to partner with.
Transaction Fees
Another critical factor to consider when selecting an exchange for your Bitcoin investment is the transaction fees, which can vary significantly from one exchange to another and can be based on transaction size or activity level. Transaction fees add up over time, and can have a significant impact on your investment profitability. Therefore, it’s essential to compare the fees charged by different exchanges and their fee structures before deciding where you want to invest.
Investing in Bitcoin: CEX or DEX?
A centralized cryptocurrency exchange (CEX) is operated by a central authority. It allows users to trade cryptocurrencies within the exchange, which acts as an intermediary between buyers and sellers. On the other hand, a decentralized exchange (DEX) operates without a central authority and allows users to trade cryptocurrencies directly with each other, securely and trustlessly.
Let’s look at the pros and cons of both CEXs and DEXes.
Centralized Exchange (CEX)
Pros:
Most CEXs are regulated, which can provide a higher level of security for users.
They often have more advanced trading features and tools, such as margin trading and stop-loss orders.
CEXs can be easier to use, especially for beginners.
They generally provide reliable customer support to answer any inquiries you may have.
Cons:
Because CEXs are centralized, they can be vulnerable to hacks.
You don’t have complete control over your assets with a CEX, because the exchange stores them for you.
CEXs may charge higher fees than DEXs.
Decentralized Exchange (DEX)
Pros:
DEXs are decentralized, meaning a single entity doest cn’ontrol them. This makes them more secure, as there’s no central point of failure.
A user has complete control over their assets, which are stored in a cryptocurrency wallet that the user controls.
DEXs may have lower fees than CEXs.
Cons:
DEXs may have limited trading options and tools as compared to CEXs.
They can be more complex to use, especially for beginners.
Some DEXs may not be as well-regulated as CEXs, which can increase the risk of fraud or hacks.
Ultimately, deciding whether to use a CEX or DEX depends upon your individual needs and goals. If you’re a beginner or are looking for a more user-friendly platform with advanced trading features, a CEX might be a good choice. However, a DEX might be a better option if you value control over your assets and privacy, and are willing to trade off some convenience and features.
How to Store Your Bitcoin
You need to safely and securely store your Bitcoin once you’ve purchased it. Proper storage will protect your investment, and give you peace of mind. Each storage option has its pros and cons, so you’ll want to consider the tradeoff between security and convenience before carefully deciding which option is best for you.
Here are several ways to store Bitcoin:
Bitcoin/crypto exchanges: Many crypto exchanges offer services for storing Bitcoin on their platforms. While convenient, however, exchanges can be vulnerable to hacking.
Bitcoin wallets: As software programs, crypto wallets help you store your Bitcoin and allow you to send and receive Bitcoin with transactions. These wallet choices include desktop wallets, mobile wallets and web wallets.
Hardware wallets: These are physical devices that store your Bitcoin offline. They boast a level of security that no other wallet type offers, making it more difficult for hackers to access an investor's Bitcoin.
Paper wallets: These are printouts of your public and private keys. They can be used to store Bitcoin offline. Always keep your paper wallets in a secure location, as they can easily be lost or stolen.
Regardless of which storage option you choose, it’s important to keep your Bitcoin secure and make sure to follow best practices for storing and protecting it.
How to Buy Bitcoin With Bybit
If you have spare cash in your bank account, consider investing in Bitcoin to diversify your portfolio. Bybit offers an intuitive interface that allows users to buy and sell Bitcoin and other digital assets via their local fiat currencies.
Follow these simple steps to buy Bitcoin with Bybit:
Register for an account with Bybit, or log in to your existing account.
Go to the menu and click on One-Click Buy.
Select the preferred fiat currency from the drop-down menu, and enter the sum you’re going to spend or the amount of BTC you’re going to buy.
Select your preferred funding method. Note that based on your location, some options may not be available.
Proceed with your payment.
Verify your account through the KYC process to complete your purchase.
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