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Is It Possible To Turn $100 Into $70 Million? It Is If You Bought Bitcoin 7 Years Ago

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Is It Possible To Turn $100 Into $70 Million? It Is If You Bought Bitcoin 7 Years Ago

The price of the digital currency bitcoin hit a new all-time high on Monday of close to $2,200. As such, the lucky few (if any) who bought $100 worth of bitcoin seven years ago to the day at a cost of $0.003 cents each are now sitting on a vast fortune of more than $70 million.

According to a CNBC report, Monday marks the seven-year anniversary of what is believed to be the first ever bitcoin transaction. On May 22, 2010, a programmer named Laszlo Hanyecz traded 10,000 bitcoin in exchange for two pizzas.

For many investors, the concept of bitcoin is confusing and unfamiliar, especially the rise in its value. According to the CNBC report, there are a few factors to explain the surge in bitcoin's value over the years.

First, political uncertainty and has created demand for a digital currency that is not linked to any one central bank or government. For example, bitcoin has gained popularity in countries with capital or currency restrictions, especially in China, India and Venezuela.

More recently, Japan passed legislation that would allow companies and retailers to accept bitcoin as a legal currency. Naturally, this helped boost trading activity in the yen/bitcoin pair and now accounts for over 40 percent of all bitcoin trade.

No Stranger To Volatility

But at the end of the day many investors who are used to volatility in the stock market might be uncomfortable with the volatility seen in bitcoin. Consider the fact that bitcoin hit a prior all-time high of $1,137 in November 2013 and then traded between $200 and $400 for much of 2014 and 2015.

It wasn't until January 2017 that the price of a bitcoin eclipsed its 2013's high—only to plunge 23 percent the following day.

Related Links:

SEC To Review Decision Denying Bitcoin Market Listing

For The First Time Ever, One Bitcoin Is More Valuable Than One Ounce Of Gold?

 

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