If you would have invested in bitcoin a few years ago, you would have gotten an immense pay off.
From cryptocurrency website CoinDesk’s sayings (its Bitcoin Price Index tracks prices from Bitcoin exchanges such as Bitfinex, Bitstamp, Coinbase and iBit), Bitcoin’s price was very unstable in 2013, especially in the last months of the year. In the month of December alone, bitcoin’s value had a high of $1000 and lows under $600.
An investment of $1000 back then when its price was $600, would have meant you owned 1,6 Bitcoins. If you bought $1000 worth of bitcoin when at $1000, you would have one bitcoin.
According to Coindesk, Bitcoin’s price was just a little over $16,500 this Thursday. Based on this, 1,6 would be now worth more than $26,400. This value does not have additional fees or transaction costs included.
That is a huge profit to get in just a few years.
If you had enough to invest in 2010, you could have been in the company of the first bitcoin billionaires – the Winklevoss twins.
As bitcoin has become more well known to the public, some of the most important names in the finance industry are weighing in. Tom Lee from Fundstrat and value investor Bill Miller have welcomed this movement.
But in spite of so many success stories resulted from bitcoin investments, experienced investors are advising people to be cautious. Billionaire Mark Cuban and Warren Buffett warn of Bitcoin’s volatility. Prominent investor and index fund mogul Jack Bogle even told the audience to avoid bitcoin like the plague at a recent Council on Foreign Relations event.
He goes on saying that bitcoin has no underlying rate of return and that bitcoin has nothing to support it, except the investor’s hope that they will sell it to someone at a higher value than it was bought.
Robins said on CNBC’s “Fast Money” that he believes that bitcoin is very iffy and has compared investing in it like going to Vegas.
Robbins has invested certain amounts of money in risky ventures, but he doesn’t count on them actually working out. He said he was just “investing for fun”, knowing that he could lose.
Be cautious if you are considering of investing into cryptocurrencies. Experts – like Robbins – recommends you think of such investment like a trip to Vegas, play just once but with money you afford to lose.