Despite the asset’s high level of volatility, long-term holders have made great profits. For instance, because bitcoin had no value at the time of its original debut in 2009, your profits may have been in the millions or billions.
Read CRYPTONEWSLAND onDaniel Polotsky, CEO of CoinFlip, one of the biggest bitcoin ATM firms in the U.S., declared that it was unquestionably the best-performing asset of the last ten years. Cryptocurrencies have essentially operated like a high-beta version of the stock market for the entirety of 2022: when equities rise, crypto rises much more, and vice versa.
Imagine you started playing the game in October 2010 when one bitcoin was worth 10 cents. About 1,000 bitcoins might have been purchased with $100 in investment.
Those 1,000 bitcoins, assuming you bought and kept the item the entire time, would have been valued at more than $48 million at its all-time high on Thursday.
The number of people who both bought bitcoin so early and have generally kept onto their investments is minimal, according to Polotsky, as that is a long period to retain a very volatile asset.
And although there are numerous accounts of people who invested in cryptocurrencies making extremely large profits, there are also many accounts of those who lost just as much money by purchasing and selling the incorrect asset at the wrong moment.
Technical difficulties have made it difficult for investors who have held onto bitcoin for that long to actually cash out their incredible gains; some have forgotten the passwords to their digital wallets, meaning they have a limited number of attempts to access the money before being locked out permanently.
However, the trajectory of bitcoin has been extraordinary and has surpassed that of conventional assets. After quadrupling in value in 2020, the cryptocurrency has increased by more than 63% only in 2021.
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