Bitcoin broke a new valuation record from October 19, 2021 to $67,000. A look back at its incredible evolution and investment prospects in this digital currency. Contents of this podcast
- Bitcoin, from record to record
- Bitcoin’s valuation history for 10 years
- Significant price changes, both upwards and downwards
- Elon Musk, Tesla and Bitcoin: Love and Dislove
- Why is the price so high?
- What can you buy with 1 Bitcoin in 2021?
- Is this the right time to invest in cryptocurrencies?
- If you’re disappointed that you didn’t invest in virtual currency a few years ago
Bitcoin, from record to record
You could have been rich. Very rich.
If you had invested the money in your savings book in Bitcoins 10 years ago, you would be a rentier today!
February 2011. The price of the main virtual currency reaches parity for the first time with the main international currency: 1 Bitcoin is then worth 1 dollar.
10 years later, February 2021: the price of virtual currency crosses the $50,000 mark.
8 months later, on October 19, 2021, the dean of cryptocurrencies still crosses a new ceiling, with a record price of $ 67,000.
A person who invested $1,000 of his savings account in 2011 would now be sitting on a treasure trove of… $67 million! Bitcoin’s valuation history for 10 years
When we analyze the evolution of Bitcoin over the past 10 years, the figures are breathtaking.
The flagship cryptocurrency thus shows an increase of:
- 120% since 1 January 2021,
- Nearly 400% since last year,
- Almost 900% over 3 years.
A progression that makes you dizzy, and that attracts many speculators.
Indeed, what other types of investments today make it possible to multiply its stake by four in just one year? Chart of Bitcoin quotes for 10 years (price as of October 20, 2021). Source: BoursoramaPortal price changes, up and down
But the evolution of the price of Bitcoin over the last 10 years has not always been a long quiet river.
Indeed, the cryptocurrency has experienced meteoric rises like vertiginous falls.
Back in 2017. The financial world is in turmoil. Tired of the low yield of traditional savings and investment products, hedge funds and individuals are starting to invest heavily in virtual currency in order to obtain better returns.
As a result, Bitcoin goes from $ 1,000 to $ 20,000 in 12 months. A superb financial operation for those who wanted to boost their portfolio!
But the soufflé falls back little by little. And the digital currency was only trading at $3,200 a year later, in December 2018.
In the following years, the currency will continue to make the yoyo, with differences of variations still significant.
But it is in 2021 that the price of Bitcoin will literally take off. Especially thanks to the impulse of a man. Elon Musk, Tesla and Bitcoin: Love and Dislove
In February 2021, Elon MUSK will propel Bitcoin to more than $63,000 when he invests $1.5 billion of Tesla’s cash in this cryptocurrency.
The prices of the virtual currency are literally soaring. Investors wishing to take advantage of the optimism of the Silicon Valley industrialist in his confidence in the evolution of this currency.
A month later, new announcement. The Californian states on Twitter that his electric cars can now be bought in Bitcoin.
You can now buy a Tesla with Bitcoin— Elon Musk (@elonmusk) March 24, 2021
Bitcoin then broke a new record, at $63,000.
To go further: Buy a Tesla in Bitcoin, marketing stunt or good opportunity?
But the trees do not rise to the sky. And two major announcements will drag crypto into a real crash and lose half of its value in 3 months.
The first comes from China, when the government announces restrictions on its use on its territory. Beijing wanted to stop this troublesome competitor, while the country was working on launching its own virtual currency.
The second comes from California and occurs on May 13, 2021. In a new tweet, Elon MUSK makes an about-face and announces the end of Bitcoin transactions for his Tesla. This is due to their strong negative impact on the environment.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP— Elon Musk (@elonmusk) May 12, 2021
Indeed, its encryption process (the “mining”) is extremely energy-intensive.
For its operation, Bitcoin consumes more electricity than a country like Norway.
For example, Facebook spends 5 Twh of electrical energy per year on all of its servers. That’s 12 Twh for Google. And 143 for Bitcoin!
An aspect that goes against the image of Tesla and its clean vehicles.
As investors might have feared, Elon Musk’s announcement plunges prices into a new low of $29,609 on July 21, 2021.
Source: StatistaWhy is the price so high?
But since September 2021, Bitcoin prices have risen sharply.
In question, the creation of an investment fund (ETF) on the New York Stock Exchange based on the price of the cryptocurrency. This fund called “ProShares Bitcoin Strategy” allows everyone to invest in this currency without owning it in a wallet.
This is an important step because, until now, holding Bitcoins has been a complex process. It was necessary to open a virtual wallet with a dedicated platform and especially never to misplace the codes of its wallet!
This is the mishap that happened to Stefan Thomas, an engineer from San Francisco, who today cannot recover his 7,002 Bitcoins since he lost his passwords.
Cost of this stunning? $220 million!
The creation of a fund that allows everyone to invest in Bitcoin easily and safely is, for investors, an important step to democratize its use. Hence its record valuation. What can you buy with 1 Bitcoin in 2021?
Imagine: if you had bought 1 Bitcoin in 2011, an amount of one dollar, you would have $67,000 in your wallet today.
You could afford to:
- A studio in Toulouse (value: 66,000 euros)
The displayed price of this apartment is 66.000 euros. It will probably be negotiated at 60,000 euros. That’s $69,000. A price similar to the current price of a Bitcoin. An announcement from a studio in Toulouse is equivalent to the price of a Bitcoin. Source: SeLoger.com
- A Tesla Model Y (value: $69,000)
In France, a Tesla Model Y starts in basic version at 59,990 euros. Price of a Tesla Model Y in France to October 22, 2021. Source: Tesla.com
- One year of study at a university in the United States
The cost of a year of study at a university in the United States is in the range of $50,000 to $60,000 (including the cost of living). Stanford campus in the United States
This capital could also have allowed you to launch your start-up 😉🚀🔝
Is this the right time to invest in cryptocurrencies?
In view of the evolution of prices over 10 years, it is tempting to buy Bitcoins today in the hope of becoming a millionaire in 5 years. But choosing to invest in this currency is not without risk.
The price of this virtual currency seems much too high at the moment to position itself (trust a former manager in Private Banking, used to managing portfolios of several million euros 🤑).
If you still want to get started, here are 3 tips:
- Expect a drop of at least 30%,
- Have a long-term goal,
- And above all, do not invest money that you would need for important projects (buy your apartment, finance your retirement, pay for your children’s education…).
If you’re disappointed that you didn’t invest in virtual currency a few years ago
I would like to reassure you: it is not your wealth that makes your value 😊
Instead, put your treasure in the right place!