The Best Performing Investment of the Last 5 Years. Can you name it? Stocks? Bonds? Netflix? Behind the answer lies a somewhat rogue investment, that is gaining mainstream popularity and media coverage. It has gained an astonishing 1000 fold or 100,000% from it’s price on October 27, 2010 of $0.29 USD. It had actually skyrocketed to more than a 400,000% gain and a price of $1242.00 at one point. The price as it stands today is $295.00 USD give or take, but who’s counting?
Actually some big investors have gotten involved. The Winklevoss twin brothers, whom had a dispute and subsequent settlement from Facebook, as portrated in The Social Network for example. They reportedly purchased about a 10% stake in the investment in the $11.00 range. This game changer investment has had over a billion dollars in venture capital pumped into startups surrounding it’s technology.
If you still don’t know what it is, I won’t leave you in anymore suspense.
Ready for it?
Many still don’t know what it is. It’s a virtual currency that relies on a network and not a central authority. 97% of all American dollars are already virtual and not in print. USD are also under banking and government control, which results in inflation/devaluation and fees. Bitcoin is capped in how many will ever exist, so it’s the opposite, deflationary. It has only been around since 2009 and as you can see it has grown exponentially. It has had large upswings and downswings, but has always ended up much higher than it’s prior resting places.
Bitcoin will either fail or become the most revolutionary technology since the advent of the internet itself. There are currently 14.77 million bitcoins in existence. There will only ever be 21 million. The creation of new units stops around 2040.
Here’s the math on how there is still lots of room to make bank on bitcoin.
- The current value of the 14.7 million bitcoins is $4.4 billion
- The currency market (Forex) is the largest market in the world estimated at $70 Trillion
- The Forex market trades over $5 Trillion per day
- If Bitcoin were to capture only 1% of this market it would have a value of $700 Billion
- Even at 21 million Bitcoins (the max amount) it would give you a price of…..
$33,333.00 USD/ Bitcoin
And that is only 1%, if it were to follow a curve similar to internet growth, which it has thus far, you can imagine where this could go. We would be using microbitcoins or bits, which is 1 millionth of a bitcoin as a unit instead. As with any investment, don’t invest what you can’t afford to lose, or keep it under 10% of your portfolio.
It will certainly be fun to watch how this plays out.
You can watch the price of Bitcoin Here