Bitcoin’s price has been extremely volatile over the past 14 years, testing the patience of even the most dedicated holders.
Bitcoin, launched in 2009, was an obscure digital currency with virtually no value in its early days. In 2010, Bitcoin was first traded, starting at a fraction of a rupee. Fast forward to 2024, Bitcoin is a global financial sensation, reaching $100,000 in value.
If you invest in Bitcoin in 2010 Rs. 1,000 invested, the returns would have been astronomical. Let’s break down the numbers.
Bitcoin price in 2010
In 2010, Bitcoin was trading at around $0.08 per coin, which is Rs. 3.38 (using an average dollar-rupee exchange rate of Rs. 42 in 2010) equals With Rs 1,000, you could have bought:
Rs 1,000 ÷ Rs 3.38 = 295.85 BTC
Bitcoin price today
As of November 2024, Bitcoin is trading at around $98,000 per coin. Using the current exchange rate of 84.45 rupees per dollar, the value of 1 Bitcoin is:
$98,000 × Rs 84.45 = Rs 82,76,100.
Today your 295.85 BTC will be worth: 295.85 BTC × Rs 82,76,100 ≈ Rs. 24,47,32,78,185 (Rs. 2,447 crores)
Return on investment
Your initial in Bitcoin is Rs. 1,000 investment now Rs. 2,447 crores. That’s a 244,732,78,085% return over 14 years! To put this into perspective, investing in the stock market, gold or real estate over the same period would not even come close to this figure.
Major Milestones in Bitcoin’s Journey
1. 2010: Bitcoin’s first real-world transaction saw 10,000 BTC being used to buy two pizzas, marking its first valuation in fiat currency.
2. 2017: Bitcoin hit its first major milestone during the crypto boom, surpassing $20,000 per coin.
3. 2020-2021: Institutional adoption increased with companies like Tesla and Square investing in Bitcoin.
4. 2023: The US SEC has approved Bitcoin ETFs, pushing institutional investments into the latest financial instrument.
4. 2024: Bitcoin hit a new all-time high of $98,000 after Donald Trump won in the US on expectations of crypto-friendly policies during his tenure.
What this means for investors
Bitcoin’s exponential growth highlights the potential of early investments in revolutionary technologies, although the journey has not been smooth. Bitcoin was extremely volatile during this period.
risks
1. High Risk, High Reward: Bitcoin’s growth came with extreme price swings emphasizing the importance of understanding risk tolerance.
2. Long Term Perspective: Amazing returns were possible only for those who held onto their investments for more than a decade. Price volatility in Bitcoin tested the patience of even the most dedicated holders.
3. Diversification: While Bitcoin’s returns have been phenomenal, investing all your money in one asset is risky.
4. Regulatory: In India, the regulation in India is not clear. While the RBI has called for a complete ban on it; On the other hand, the finance ministry has imposed a heavy tax on crypto. Currently, 30% tax is applicable on crypto profits, with no provision to offset any losses. 1% TDS is also applicable on crypto sales after a certain amount.
How to buy Bitcoin?
There are various platforms through which Indian investors can buy Bitcoin. These are Binance, CoinSwitch, CoinDCX and Zebpay. All these apps require KYC and charge a fee for crypto transactions.
Bitcoin Price: What is Outlook?
Global investment firm Bernstein expects Bitcoin to reach $200,000 by 2025, $500,000 by 2029, and $1 million per token by 2033. In its latest report, it stated that cryptocurrencies could be headed for the stratosphere.
According to Yahoo Finance, ArchInvest CEO Kathy Wood also expects Bitcoin to reach $1 million by 2030.