If You Invested $1,000 in Bitcoin 5 Years Ago, This Is How Much You'd Have Now | The Motley Fool (2024)

Is Bitcoin's roller coaster ride worth the risk? See how it stacks up against the S&P 500's steady 5-year climb.

Index investing is a great approach, but you can do even better with specific stocks or cryptocurrencies from time to time.

Let's say you invested $1,000 in an index fund tracking the S&P 500 (^GSPC 0.86%) index 5 years ago. The SPDR S&P 500 ETF (SPY 0.83%) is one popular option with minimal management fees and a stellar history of reflecting its chosen index.

If you reinvested dividends into more shares of the exchange-traded fund (ETF) over time, you would have doubled your money by now. That's an average annual return of 15% -- well above the 10-year average at 12% or the 10% annual returns since the ETF was introduced 41 years ago.

It's easy to see why The Motley Fool recommends holding a diversified stock portfolio for a long time, in the spirit of index-fund pioneer John Bogle and master investor Warren Buffett. I mean, good luck finding a savings account with a stable 10% interest rate, not to mention the higher gains in recent years. Diversified investing is a proven strategy for building and protecting your wealth in the long run.

But what if you picked up $1,000 of Bitcoin (BTC 0.59%) tokens five years ago? The largest cryptocurrency was in the middle of another crypto winter back then, hampered by hacking scandals and regulatory crackdowns with no support to speak of from large banks and other financial institutions. The $19,345 record price of the Bitcoin boom in 2017 felt like a distant memory, melted down to $3,644 per token.

Bitcoin's rocky five-year gains

As it turns out, that was a solid buying window for investors looking to commit their funds over a five-year span. A $1,000 Bitcoin investment on Jan. 15, 2019, was worth $11,540 at the time of writing exactly five years later:

If You Invested $1,000 in Bitcoin 5 Years Ago, This Is How Much You'd Have Now | The Motley Fool (1)

Bitcoin Price data by YCharts

It hasn't been a smooth ride, but there's no denying the general upswing over five years. In this period, Bitcoin investors faced more crypto-exchange hacks, the coronavirus health crisis, a global inflation surge, and other challenges. Bitcoin prices fell more than 10% in August 2023, not to mention six single-month drops of that magnitude in 2022. The preceding chart includes all of these headwinds and crashes.

The road ahead: Bumpy but hopeful

Still, Bitcoin is back on its digital feet with more gains than losses in recent months and a robust slate of upcoming catalysts for further gains.

  • The next Bitcoin halving -- a regularly scheduled increase of the computing power required to mine new Bitcoins -- is scheduled in April 2024. These events are typically followed by a strong bull run in Bitcoin prices over the next couple of years.
  • American regulators recently approved 11 applications for ETFs based on spot-market Bitcoin prices. The approval did not result in a sharp price boost, but having easy access to Bitcoin-based investment vehicles such as the ARK 21Shares Bitcoin ETF (ARKB -1.13%) and iShares Bitcoin Trust (IBIT -1.14%) should ultimately increase trading volume and support higher Bitcoin prices.
  • The regulatory picture is starting to clear up, driven by renewed public interest in the crypto space and progress in important legal cases such as the U. S. Securities and Exchange Commission vs. Ripple (XRP -1.86%). The wheels of justice and regulatory rulemaking grind slowly, and I don't expect a complete rulebook in 2024 or 2025. Still, every step in the direction of clarity is good news, even if they're not always taken in the direction of lower taxes and greater investor access to cryptocurrency assets.

The general long-term trend tends to leave traditional stock market indices like the S&P 500 far behind. Furthermore, that bullish market tenor should continue over the next couple of years due to the technology, market, and regulation events listed above -- with the caveat that there may be dramatic price drops along the way for a myriad unforeseen reasons.

So Bitcoin isn't a magic ticket to automatic investment gains, with a significant risk of sudden downswings and long periods of stalled or negative returns. Sticking with a market tracker like the SPDR S&P 500 ETF may be a better choice if you're not ready for the volatility and technical quirks of Bitcoin investing.

Still, it's a robust digital currency with an unpredictable yet promising future, and I think a modest position in Bitcoin (or one of the Bitcoin-based ETFs) would be a healthy addition to a diversified portfolio.

Anders Bylund has positions in Bitcoin and XRP. The Motley Fool has positions in and recommends Bitcoin and XRP. The Motley Fool has a disclosure policy.

If You Invested $1,000 in Bitcoin 5 Years Ago, This Is How Much You'd Have Now | The Motley Fool (2024)


If You Invested $1,000 in Bitcoin 5 Years Ago, This Is How Much You'd Have Now | The Motley Fool? ›

But you'd be pretty happy if you'd bought five years ago and held on for dear life. A $1,000 investment in Bitcoin five years ago will have grown to over $13,000 today.

How much is $1000 dollars in Bitcoin 5 years ago? ›

If you had invested $1,000 into bitcoin five years ago, the investment would have grown by 1,352% and be worth around $14,524 as of Feb. 14. If you had bought $1,000 worth of bitcoin 10 years ago, it would have grown by 7,644% and be worth around $77,443 as of Feb. 14.

What will $1000 of Bitcoin be worth in 2030? ›

If Bitcoin continues this pattern into 2030, the price could peak around 2029 or 2030. If Wood is correct and Bitcoin reaches $3.8 million, if you invested $1,000 in Bitcoin now, it would be worth $54,280 in 2030. This would result in a compounded annual growth rate (CAGR) of nearly 95%.

How much will $1 Bitcoin be worth in 2030? ›

Bitcoin's Price History

Notably, Cathie Wood, CEO of Ark Invest, predicted that bitcoin could reach an astounding $1.48 million by 2030. Obviously, the world's oldest cryptocurrency has come a long way since its first recorded price of less than a cent.

Will Bitcoin be worth anything in 10 years? ›

In its 2023 Big Ideas report, Ark Invest laid out several price targets for Bitcoin. The report sees Bitcoin hitting price targets in 2030 of $257,500 in the bearish forecast, $682,000 in an average market and $1.48 million in a bullish market.

Is it worth buying $1000 of Bitcoin? ›

Bitcoin by 2030

If we go by Wood's predictions of Bitcoin hitting $1 million in 2030, that would represent a 1,288% price increase from today's price. In turn, $1,000 in Bitcoin bought today would produce a return of $12,880 return in six years.

What if I bought $1,000 Bitcoin in 2013? ›

On July 1, 2013, Bitcoin traded for around $90.80. A $1,000 investment in Bitcoin could have purchased 11.0132 BTC at the time. Based on a price of $34,055.98 at the time of writing, the $1,000 investment would be worth $375,065.32 today. This represents a hypothetical return of 37,406.5% over the last 10 years.

Which coin will reach $1 in 2024? ›

Exploring the potential cryptocurrencies like Pikamoon, Dogecoin, Book of Meme, Rosewifhat, and Zilliqa as contenders to hit the $1 milestone. Key factors like utility, viral potential, and clear roadmaps suggest their potential amidst market sentiment and unique tokenomics.

How high will Bitcoin go in 2025? ›

A 50% gain this year would boost Bitcoin's price to $65,800 by Jan. 1, 2025, while another 50% gain would drive its price to $98,700 by Jan. 1, 2026. So if Bitcoin merely replicates its average annual growth rate from the past decade, its price could approach $100,000 by the end of 2025.

Is Bitcoin going to skyrocket? ›

A recent report predicts that Bitcoin will reach a new all-time high in 2024. Bitcoin (BTC) is expected to reach a new record of $88,000 (€82,000) throughout the year, before it settles around $77,000 at the end of 2024, according to a new report. The cryptocurrency's current price sits at around $43,000.

How much will 1 Bitcoin be worth in 2050? ›

Bitcoin price prediction for 2050

According to the calculation, Bitcoin's price could increase to $5,411,000 by 2050 and grow by more than +10,980% over the next 27 years. Bitcoin could become a multi-million dollar asset by 2050.

Is it smart to invest in Bitcoin? ›

Sarathy concurs that there are risks involved with investing in these cryptocurrencies, including price volatility, cybersecurity concerns and a lack of regulations compared to traditional currency. Ultimately, it's up to each individual user how much risk they want to take.

What year was Bitcoin worth $1? ›

According to historical data at Investing.com, Bitcoin's price never broke above $0.40 per bitcoin in 2010 but did manage to hit that level in early 2011. Then in February, it crossed $1. Just a few months later, in May, it briefly exceeded $8 – a stunning 8-bagger in mere months!

How much will I get if I put $1 dollar in Bitcoin? ›

1 USD equals 0.000016 BTC. The current value of 1 United States Dollar is -0.37% against the exchange rate to BTC in the last 24 hours. ​ The current Bitcoin market cap is $1.20T. ​Create a free Kraken account to instantly convert USD to BTC today.

What will Bitcoin be worth in 2040? ›

Fidelity Predicts: $1B per 1 BTC by 2038 — 2040

Jurrien Timmer, Director of Global Macro at Fidelity Investments, predicts a staggering future for Bitcoin, suggesting that the value of a single Bitcoin could soar to $1 billion by 2038 to 2040. Timmer's demand model is rooted in Metcalfe's Law.


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