In December last year, the crypto market boomed with Bitcoin almost hitting $20,000. Less than a year later, the value of the leading cryptocurrency has dropped to around $6,500 (currently priced at $6,474 at time of writing). Even though Bitcoin has dropped from its all-time high of nearly $20,000, if you invested a thousand dollars in the crypto five years ago you would have made a massive profit, obviously. During the end of 2013, the value of one Bitcoin reached heights of around $1,000 and lows of below $600. When the cryptocurrency began to go mainstream during this time, it hovered around the $1,000 mark for a while. A Bitcoin that was purchased for around $1,000 would be worth just under $6,500 in today's market and so your total profit would be around five thousand dollars.Although, it’s worth noting that this doesn’t include any additional fees or transaction costs.If you bought Bitcoin during it’s high of almost twenty thousand dollars you would have hit quite a significant loss of around fifteen thousand dollars. Volatility is quite a common thing for digital currencies. Some of you will remember a time when Ethereum was priced at around $1,300 but now it is priced around the $200 mark. Other big coins have seen a similar loss such as Litecoin and XRP. This is just one of the reasons that we always let our readers know that it’s wise to do research before investing. As said by CNBC, many notable figures have had their say on Bitcoin over the years including Jack Bogle, founder of Vanguard and a big name in the industry told the audience at a Foreign Relations event that they should avoid Bitcoin like the plague. Not to mention, Warren Buffett and Mark Cuban who are both billionaire entrepreneurs who both believe Bitcoin is unstable. Bogle also said:
"Bitcoin has no underlying rate of return. You know bonds have an interest coupon, stocks have earnings and dividends, [and] gold has nothing. There is nothing to support bitcoin, except the hope that you will sell it to someone for more than you paid for it."
In recent news, a congressional hearing saw the notorious Nouriel Roubini, global economist and New York University professor said that "Crypto is the mother or father of all scams and bubbles." He made it known that scammers, making the most of gullible investors took them for a ride with "crappy assets that went into a bust and crash — in a matter of months — like you have not seen in any history of financial bubbles."What are your thoughts? Let us know what you think down below in the comments!
Robert first came across Bitcoin in 2016 during a meetup in Belgium, and has been hooked ever since. With a background in Economics, you can find Robert frequently looking at the Twitter feed of the SEC for any regulatory updates relating to Bitcoin and Crypto in general.
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