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Bitcoin’s price remained highly volatile in the past 14 years, testing the patience of even most dedicated holders.
Currently, the price of one Bitcoin stands at nearly $98,000.
Bitcoin, launched in 2009, was an obscure digital currency with virtually no value in its early days. In 2010, Bitcoin was traded for the first time, with its price starting at fractions of a rupee. Fast forward to 2024, Bitcoin is a global financial sensation, with its price scaling to $100,000.
Had you invested Rs 1,000 in Bitcoin in 2010, the returns would have been astronomical. Let’s break down the numbers.
Bitcoin Price in 2010
In 2010, Bitcoin traded for about $0.08 per coin, which equates to Rs 3.38 per coin (using the average dollar-rupee exchange rate of Rs 42 in 2010). With Rs 1,000, you could have purchased:
Rs 1,000 ÷ Rs 3.38 = 295.85 BTC
Bitcoin’s Price Today
As of November 2024, Bitcoin is trading at around $98,000 per coin. Using the current exchange rate of Rs 84.45 per dollar, the price of 1 Bitcoin is:
$98,000 × Rs 84.45 = Rs 82,76,100.
The value of your 295.85 BTC today would be: 295.85 BTC × Rs 82,76,100 ≈ Rs 24,47,32,78,185 (Rs 2,447 crore)
Return on Investment
Your initial Rs 1,000 investment in Bitcoin would now be worth a whopping Rs 2,447 crore. That’s a jaw-dropping 244,732,78,085% return over 14 years! To put this in perspective, an investment in the stock market, gold, or real estate during the same period wouldn’t even come close to these figures.
Key Milestones in Bitcoin’s Journey
1. 2010: Bitcoin’s first real-world transaction saw 10,000 BTC used to buy two pizzas, marking its first valuation in fiat currency.
2. 2017: Bitcoin hit its first major milestone, crossing $20,000 per coin during the crypto boom.
3. 2020-2021: Institutional adoption grew, with companies like Tesla and Square investing in Bitcoin.
4. 2023: The US SEC allowed the Bitcoin ETFs, which push institutional investments into the latest financial instrument.
4. 2024: Bitcoin reached a new all-time high of $98,000, following Donald Trump’s victory in the US in expectations of crypto-friendly policies during his tenure.
What This Means for Investors
Though the exponential growth of Bitcoin highlights the potential of early investments in revolutionary technologies, the journey wasn’t smooth. Bitcoin was extremely volatile during the period.
Risks
1. High Risk, High Reward: Bitcoin’s growth came with extreme price swings, emphasising the importance of understanding risk tolerance.
2. Long-Term Perspective: The staggering returns were only possible for those who held onto their investment for over a decade. The price volatility in Bitcoin tested the patience of even most dedicated holders.
3. Diversification: While Bitcoin’s returns were extraordinary, investing all your money in one asset is risky.
4. Regulatory: In India, the regulation is not clear in India. While the RBI has called for a complete ban on it; the finance ministry, on the other hand, has imposed a hefty tax on the crypto. Currently, a 30 tax is applicable on crypto profits, with no provision of offsetting any loss. A 1% TDS is also applicable on crypto sell 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 app requires KYC and charges fees for crypto transactions.
Bitcoin Price: What Is The Outlook?
Global investment firm Bernstein expects Bitcoin to touch $200,000 by 2025, $500,000 by 2029, and $1 million per token by 2033. In its latest report, it said the cryptocurrency could be headed for the stratosphere.
According to Yahoo Finance, Ark Invest CEO Cathie Wood also expects Bitcoin to hit $1 million by 2030.
