Bitcoin (CRYPTO: BTC) is trading today (April 25) between $27,000 and $28,000, showing impressive appreciation since its inception in 2009. For those who caught the Bitcoin wave early, the returns have been nothing short of astronomical.
In this article, Benzinga takes a trip down memory lane to examine how much you would have now if you had invested $1 in Bitcoin in 2012.
In 2012, Bitcoin was still in its infancy, having only been launched three years prior by the mysterious and still unidentified Satoshi Nakamoto.
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At the time, digital currency was relatively unknown and considered by many to be an obscure experiment. Despite its shaky beginnings, Bitcoin's value has grown exponentially over the past decade, providing investors who had the foresight to invest early with massive returns.
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How much is $1 worth of Bitcoin in 2012 in 2023: To assess the value of a $1 investment in Bitcoin in 2012, we will use an average price for that year.
In 2012, the price of a single Bitcoin fluctuated between $4.72 and $13.51, with an average price of $8.90. So, a $1 investment in Bitcoin would have bought around 0.1124 BTC.
Fast forward to 2023 with Bitcoin trading most steadily today at around $27,700 and that initial investment of 0.1124 BTC would now be worth $3,113.98. J
This represents a return on investment (ROI) of more than 311,000% in just 11 years.
To put that into perspective, the S&P 500, a popular benchmark for overall US stock market performance, has had an average annual return of around 10% over the past century. Compared to Bitcoin's returns, traditional investments seem almost quaint.
What if a person invested more? If we extrapolate the returns from our initial $1 investment example, the results for a $100 investment and a $1,000 investment in Bitcoin in 2012 are equally mind-boggling.
With an investment of $100 at the average price of $8.90 per Bitcoin, you would have bought around 11.24 BTC. Today, that investment would be worth an incredible $311,398.
If you had invested $1,000 in Bitcoin in 2012, you would have bought around 112.4 BTC. Fast forward to today's Bitcoin price of $27,700, and that $1,000 investment would now be worth a jaw-dropping $3,113,980.
These returns demonstrate Bitcoin's enormous potential as an investment over the past decade.
It is essential to keep in mind that past performance is not necessarily indicative of future results and that investing in cryptocurrencies always involves inherent risks and volatility.
See also: 'How stupid was I?': Legendary investor Peter Lynch failed Apple, Nvidia - Is Crypto his next mistake
This illustration of "Satoshi Nakamoto" was generated using artificial intelligence via MidJourney, the content was partially edited using AI tools, and was reviewed and published by Benzinga editors.
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