What would $1,000 in Bitcoins in 2010 be worth today?
What's the story
Lately, there has been a lot of buzz surrounding the world's oldest and biggest cryptocurrency, Bitcoin; its value has been growing at a rapid pace.
Seven years ago, one Bitcoin was worth only $0.003; it has now reached a new high yesterday (26 November), when it crossed the $9000-mark.
Here's how rich you would be today if you'd invested $1,000 in Bitcoins in 2010!
Details
Bitcoin: The most popular virtual currency in circulation
Bitcoin, the world's first cryptocurrency, was invented by an unknown person under the pseudonym Satoshi Nakamoto in 2009.
Cryptocurrencies use cryptography for security, regulation, and generation of currency units.
They are created and transacted electronically and are difficult to counterfeit.
As central authorities don't issue them, all cryptocurrencies are "immune" to government interference. There are no middle men, not even banks!
Rise
Bitcoin price: Current value vs. 2010 price
In 2010, one Bitcoin was worth a mere $0.003, meaning if you had $1, you could buy about 333 Bitcoins.
If you had invested that $1 in Bitcoin, seven years ago, you would now be sitting on about $3,196,800, which means $1000 invested in Bitcoins in 2010 would now be worth nearly $3.2bn (at a price of $9,600 per Bitcoin as on 27 November).
First transaction
This man paid 10,000 Bitcoins for two "expensive" pizzas!
On 22 May 2010, a programmer named Laszlo Hanyecz spent 10,000 Bitcoins to buy two Papa John's pizzas worth $30 (Bitcoin = $0.003).
He asked another Bitcoin enthusiast to accept 10,000 Bitcoins for the pizzas. 10,000 Bitcoins today are worth nearly $97 million!
This is believed to be the first real-world Bitcoin transaction. 22 May is celebrated as "Bitcoin Pizza Day" by Bitcoiners.
Comparison
$1000 invested a decade ago in top companies
Let's compare how rich you would be now (31 Oct'17) if you invested $1,000 in the biggest companies ten years ago.
$1000 invested in 2007 in Netflix is now worth $51,966, Amazon is $12,398, Apple is $6,228, Starbucks is $4,687, Nike is $3,319, Alphabet (Google's parent) is $2,922, McDonald's is $2,793, and Microsoft is $2,260.
$1,000-worth Bitcoins in 2010 are now worth $3.2bn.
Do you know?
Bitcoin investment would've made you wealthier than Anil Ambani
Closer home, had you invested $1,000 in Bitcoins seven years ago, to buy about 333,000 Bitcoins, you would now have at least $3.2 billion. This means you would be richer than Anil Ambani, whose estimated net worth is $2.7 billion, according to Bloomberg's Billionaires Index.
Reasons
Why is Bitcoin price on the rise?
The trading of Bitcoin has increased globally due to the rapid appreciation and also because of the cryptocurrency's "disruption potential"; Bitcoin investors see very high returns.
One of the significant reasons behind Bitcoin's growth is the security it offers and also the lack of regulation or control by external bodies and banks.
Lower returns delivered by other, traditional investments are also driving the rally.
Reasons-2
Other reasons behind Bitcoin growth
Some say the recent legislation passed in Japan that made Bitcoin as a legal currency, allowing retailers to accept the virtual currency has strengthened the Yen, which now accounts for more than 40% of the global Bitcoin trade.
Also, the political uncertainty across the globe is partly responsible for the Bitcoin demand, as investors see it as a safe investment option.