It’s safe to say that the rise of Bitcoin has been phenomenal. In just a little over a decade, the cryptocurrency has gone from having no monetary value whatsoever to hitting the $60,000 mark for a short time.
Sure, the value of Bitcoin has fallen since then and took a hit when Elon Musk stopped accepting it as payment for Tesla but those who had invested in Bitcoin in its early days are still in the green by a very long mile and will see a spectacular return on their investment.
Watch: Early Coinbase investor explains why crypto selloffs are ‘quite common’
How much was Bitcoin trading in its early days?
Even though Bitcoin came into existence back in 2009, it didn’t have any value whatsoever until 2010. It was around this time that someone who held 10,000 Bitcoins tried to sell them off for a measly $50 but was unsuccessful. 10,000 Bitcoins for $50: we’ll give you a moment for you to recover from that audible gasp.
A couple of months later, someone actually managed to complete a real-life transaction using Bitcoin. We’re not sure if it was the same chap trying to offload his 10,000 Bitcoins but it was the exact number that was paid in exchange for two pizzas. At today’s value those many units of Bitcoin would be worth nearly $350 million.
It wasn’t until February 2011 that the cryptocurrency crossed the $1 threshold. Which is to say at that time 1 Bitcoin was worth $1. Cut to 2013 when the value of one Bitcoin surged beyond $1200 before crashing back to the $300-odd level. In fact for the next four years or so, Bitcoin didn’t see the kind of sharp spikes and dips that we’re so used to seeing these days and hovered around the three-digit mark.
If you had invested Rs 25,000 in Bitcoin in 2015 how rich would you be?
In 2015, Bitcoin continued to hover between the $300 and $480 range. For a short while it dipped to $170 but soon recovered and ended the year at a solid $465 as several people within the community had predicted. So, your ROI would depend a lot on when you would’ve invested in the cryptocurrency that year. For the sake of calculations, let’s assume you picked it up at $400, which is somewhere in the middle of the range in which Bitcoin was hovering that year.
Taking an average INR-USD conversion rate in that year at $64, Rs 25,000 would’ve been a little more than $390 in 2015. Which is to say you would’ve been able to buy one Bitcoin for Rs 25,000. Of course, if you were lucky enough to pick up around the time when it had hit a low of $170 you’d have been able to buy a couple and then some. But let’s just say you bought it at a relatively higher price of $390 and landed with just one Bitcoin. How much would that be worth right now?
If you had invested just Rs 25,000 in Bitcoin in 2015, you would have made more than Rs 25,86,000 right now. This means your return on investment would be more than 1,000%.
Of course this assumes you would’ve held on to that for all these years. If you’d sold it at its peak, which it hit in March this year, you would’ve had more than Rs 43 lakh. This assumption is important because several people have sold off their Bitcoins when it was on its way up. Even the early investors who had mined or bought it when it was worth less than a dollar or so, sold off their share when Bitcoin first hit $100. Others sold when it hit $1,000 and even others followed suit when it crossed the $10,000 mark. This isn’t unusual if you were an early investor. In 2015, even though Bitcoin was very much in public view, it was still early years and you, like several other investors would’ve been tempted to sell your position.
No doubt, this is all conjecture. If you had indeed invested Rs 25,000 in Bitcoin in 2015 and had held on to it, chances are you’d know all of this (and perhaps a little more that we don’t).