So, a common question that arises with bitcoin investors today is if they had invested $5000 in bitcoin seven years ago, how much would the investment be worth today? We’ll go through the math for you here in a few moments, but the bottom line is at the notional price of bitcoin today, the value of the coins would be just over a billion dollars USD! I don’t know about you, but most of us could do a fair amount of good in the world (after paying off all of your debt and taking care of your family) with this much money. Of course, we all had the opportunity to become a Bitcoin billionaire or millionaire if you were cheap 😊 But how many of us took advantage of the opportunity.
So What Would $5K in Bitcoin Bought in 2010 be Worth Today?
SO, on December 8th, 2010, bitcoin was only worth $0.08 per coin. So, for our math, if you bought $5,000 USD in bitcoin, you would have collected 62,500 bitcoins. Now, fast forward to today. Bitcoin has been up and down, but if we fair out the price to an even $16,000 per coin on January 8th, 2017, then the total value of our investment from seven years ago would be worth: 62,500 * 16,000 = 1,000,000,000.00 . That’s right at a billion dollars USD!
Ok, So What about the Bad?
So, a number of investors who put their $5,000 of bitcoin in the leading Bitcoin clearing house of the time, Mt. Gox, would have likely lost their money from an inside job. The clearinghouse ceased to exist in 2014 after filing for bankruptcy after having a large mount of bitcoin stolen from the company. At the time, they were handling more than 70% of all bitcoin transactions on the marketplace who did not deposit their coins in a locally held wallet. That is one of the advantages that Coinbase provides customers today compared to some of the cheaper exchanges to use. If the theft is due to a breach in their company security, then you are covered. If it is due to a breach in your personal device or computer security, then you incur the risk.
Ok, So Now I’m Ready to Buy Some Bitcoin!
If you live in the United States (or one of the many other supported countries by the exchange), the easiest way to get started with buying bitcoin, is to signup for a free account at Coinbase here. If you buy or sell $100 or more of digital currency then you will get $10 free of bitcoin (and we will too!) until the company discontinues their offer, Enjoy!