Bitcoin and other cryptocurrencies make up the new dazzling asset class in the markets. The cryptocurrency bull run has indeed caught the attention of millions of people who previously had never considered digital currencies like Bitcoin to be an alternative asset. Mohan Naik, an avid cryptocurrency investor says, “I had never expected Bitcoin to cross the 25,000 mark this soon. But when it began rapidly rising, crossing the mark of 50,000-60,000 was an easy task. I couldn’t believe that my portfolio included such gigantic returns from investments made in Bitcoin and cryptocurrencies.”
Investors around the world have been reported of being entitled to extremely high profits of even around more than 1,000 per cent over a number of years simply through investments made in cryptocurrencies. Let us consider that you jumped into the game at a very early stage when it had just been launched in 2009. At that time since the initial value of the asset was around USD 0, by now investors like you would have earned around millions or billions in returns, making it the best-performing asset of the last decade in your portfolio.
Nevertheless, even if an investor realised the growing excitement in Bitcoin a bit late and invested around USD 100 in October 2010 for 1,000 Bitcoins, when one Bitcoin was for 10 cents, the asset’s current value in an investor’s portfolio would surely be more than USD 40 million. Those investors who missed the opportunity to benefit from the increasing gains from Bitcoin weren’t left disappointed when the pandemic shook the world in 2020. Amid signs of broad investor interest, Bitcoin and other cryptocurrencies returned to prominence over the past year. Bitcoin has gained by more than 90 per cent in 2021, after quadrupling in value in 2020.
This story is from the March 29, 2021 edition of Dalal Street Investment Journal.
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This story is from the March 29, 2021 edition of Dalal Street Investment Journal.
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