If You Had Bought Bitcoin In 2010, Would You Be A Billionaire Today?

By on December 31, 2017 in ArticlesEntertainment

There are an awful lot of people who seem to have just clued in to the existence of Bitcoin and as a result, are convinced that had they gotten in at the start of the crypto currency, they would be a billionaire today. After all, way back in 2010, Bitcoin cost just $0.003. If you had just invested $1,000 then you would have 333,333 Bitcoins. As of December 12, 2017, Bitcoin was trading at $17,106,58. Those 333,333 Bitcoins are worth $5,702,187,631.14. If only you'd had the foresight to invest more than seven years ago…

This is flawed thinking. If you had bought $1,000 worth of Bitcoins in 2010, it is unlikely that you would still own them today. When Bitcoin's price hit 10 cents, that original investment would be worth $33,000. You might have sold it. If you hadn't, when it hit $1 and your original $1,000 was worth $333,000, chances are great that's when you would have sold.

Let's say you're a very patient investor who doesn't sell at the first rise in value. Bitcoin has also been through a number of crashes. In fact, its value has double-digit declines monthly.

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Realistically, the current fervor over the value of Bitcoin and the regret of not getting in earlier can be compared to skyrocketing tech stocks like Google or Amazon. If you'd gotten in on any of those stocks before their IPO, you'd be sitting pretty. Google IPO'd at $85. Today, it trades at more than $1,000. Amazon IPO'd at $18 and today trades for nearly $1,200 a share.

There have always been – and there always will be – investments that have made great gains over a short period of time. Bitcoin is an extreme example of this, but it is not the only one. Obsessing over missed opportunities can only lead to poor investing choices going forward. As they say FOMO (fear of missing out) is real.

Still think you'd be a billionaire today if you'd just bought Bitcoin back in the spring of 2010?

Can you find one person who invested a decent amount of money in Bitcoin back in 2010 at $0.003 who still owns it today? 

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