Bitcoin has been called the best performing investment in the past decade. A $ 1 investment at the beginning of the decade would have made a whopping $ 90,000 return if it had been sold today.
Bitcoin – better than any other asset
The Bitcoin network was launched on January 3, 2009. On January 1, 2010, it existed for a little less than a year.
At that point, Bitcoin had no monetary value because there were no exchanges for it and there were no real purchases with the digital asset to define its price.
That changed in 2010. The first Bitcoin exchange went into operation in March of the year. In May Laszlo Hanyecz then bought the now famous Bitcoin pizzas for 10,000 BTC. This made history and proved that BTC is a reliable means of payment.
Since then, the bitcoin price has mostly gone up.
According to 99Bitcoins’ expanded pricing chart, which starts in mid-2010, Bitcoin surpassed a dollar in February 2011. This initiated the first parabolic price run, in which the price reached nearly $ 30 by June of the same year. Similar waves of speculative madness also occurred in 2013 and 2017.
For comparison: the S&P 500 achieved a return of around 185 percent – and Netflix, the stock with the best performance of the decade, 3,726 percent. The numbers were provided by CNBC.
Without a time machine, the news that Bitcoin has outperformed any other investment in the past ten years is of course rather irrelevant. The real question for investors is: What will happen until December 2029?
It is impossible to say whether Bitcoin will repeat its excellent performance in the future. But many of the loudest Bitcoin proponents believe a bright future for the asset. The controversial computer scientist and presidential candidate John McAfee, for example, suspects that Bitcoin will be worth $ 1 million per coin as early as next year.
A big jump in prices
More conscientious approaches also attribute an enormous increase in value to Bitcoin. After the next halving, Bitcoin rises above $ 55,000, for example, an analyst believes.
Plan B argues: The restriction of Bitcoin supply will cause the price to jump up about every four years. Some time after halving in 2024, the price will rise to over $ 1 million. After halving in 2028, the methodology is forecasting a colossal price between $ 5 and $ 10 million.
Of course, this model depends on Bitcoin demand remaining constant over the next 10 years. Although demand has increased over the past decade (spurred on by capital controls, hyperinflationary economies and sheer speculation), this is not always the case.
Bitcoin continues to be a game of chance. Global regulators could be tough on the digital currency, some technological advances could make the protocol out of date, or a fatal network bug could be discovered that would not repair without significant damage to the asset’s value proposition can be.
Finally, the central banks could decide to completely revise their proven business model and thus significantly reduce the attractiveness of Bitcoin. Of course, given the constant rate cuts in recent years and inflation rampant in many parts of the world, we are not holding our breath for it.