If you’d invested in bitcoin a couple of years ago, you’d get a huge pay back.
The Bitcoin Price Index monitors price from Bitcoin exchange like Bitfinex, Bitstamp, Coinbase and iBit, the price of Bitcoin was very unpredictable in 2013, particularly in the last months of the year. Bitcoin’s value had a high of $1000 in the month of December alone, and lows below $600.
A $1000 investment back then, when its price was $600, would have meant that you owned 1.6 Bitcoins. You’d have one bitcoin if you purchased $1000 worth of bitcoin at $1000.
The price of Bitcoin once was just over $16,500. On that basis, 1.6 now would be worth more than $26,400. This benefit doesn’t include additional fees or transaction costs.
In just a few years, that is a huge profit to get.
If you had enough to invest in 2010, you might have been in the company of the first Bitcoin billionaires-the Winklevoss twins.
As bitcoin has become more popular with the public, some of the finance industry’s most important names are weighing in. Fundstrat’s Tom Lee and value investor Bill Miller welcomed the move.
Yet with so many success stories resulting from bitcoin investments, experienced investors warn people to be careful. Billionaire Mark Cuban and Warren Buffett warn of the instability of Bitcoin. In a recent Council on Foreign Relations case, influential investor and index fund mogul Jack Bogle also told audiences to avoid bitcoin like the plague.
He goes on to say that Bitcoin has no intrinsic return rate and that Bitcoin has nothing to help it, except the expectations of the buyer that they will sell it to someone at a higher value than it was purchased.
While the biggest names in the finance world have taken one hand, others, including “Money: Master the Game” bestseller, Tony Robbins, have not taken a definitive stance.
On CNBC’s “Fast Money,” Robins said that he thinks Bitcoin is very iffy and has compared investing in it like going to Vegas.
Robbins has spent some money in risky ventures but he doesn’t really rely on them to work out. He said that he was merely “investing for fun,” meaning he might lose.
Be cautious if considering investing in cryptocurrencies. Experts like Robbins suggest that you think of such investment as a trip to Las Vegas, only play once, but with money you’re losing.
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