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While there’s little guarantee as to which direction Bitcoin might head in the near future, history reveals that investors who committed to the original cryptocurrency have been rewarded again and again in the past.
With recent price stresses provoking the question, we’re left to ask – what would you have made if you’d invested after three of Bitcoin’s most violent price dips?
In 2012, Bitcoin suffered its first major price retraction. From August 17th to August 19th, Bitcoin retracted from trading above the $16 USD mark and fell to $7.10 USD.
The early tumble has historically been attributed to early Bitcoin user Priateat40’s decision to cease accepting Bitcoin payments.
If you’d invested in Bitcoin that early on, you’d have stood the chance of being one of the first Bitcoin millionaires – for an investment of $1,000 USD on August 19th, you would have 125 Bitcoin – worth $779,213.8 today.
Isn’t that nauseating?
Over the course of three days in April of 2013, Bitcoin’s price suddenly crumbled from as much as $259 USD to $45 USD – an 83% collapse. Attributed to a sudden deluge of media attention, the incident marked some of the first and most prominent claims surrounding Bitcoin’s status as a volatile asset.
If you’d elected to take the plunge regardless, how much would you have made today?
For an investment of 1,000 USD on April 12th of 2013, you would have 8.55 Bitcoin which would be worth $53,279.6 today. That’s a tidy profit of +$52,279.6 USD.
The tail end of 2013 through to 2015 saw Bitcoin’s first protracted bear market, which ran for 411 days. The result of Mt Gox’s collapse, Bitcoin’s price plummeted from $1,163 USD down to $152 US.
That’s a collapse of -87%.
Though Mt Gox was the largest and most prominent cryptocurrency exchange at the time, had you elected to plunge $1,000 USD into Bitcoin, you’d have 5.61 Bitcoin today.
In total, that’d amount to $35,001.2 today – making for a profit of +$34,001.2 USD and a return on investment of 3,400.1%).