Bitcoin has beaten the stock market, but you might be shocked by how much.<\/p>\n
It's been a wild ride for Bitcoin throughout its 11-year history, and that's been especially true over the past year. Not only did the COVID-19 pandemic drive Bitcoin's price lower initially, but it also seems to have helped accelerate investor interest in the leading cryptocurrency.<\/p>\n
Here's a look at how Bitcoin has performed for investors over the past year and what has driven its performance.<\/p>\n
I won't keep you in suspense. Bitcoin has increased in value by 612% over the past year, as of this writing. This means that a $1,000 investment in Bitcoin made one year ago would be worth just over $7,100 now.<\/p>\n
During the same period, the S&P 500 index, which is generally considered to be the best gauge of overall stock market performance, has delivered a 50% total return. Several stocks have doubled and tripled over the past year as the market rewarded companies that benefited from the stay-at-home economy. But there are very few stocks that have delivered returns in the same ballpark as Bitcoin. So, it's fair to say that Bitcoin has been a big success as an investment over the past year for buy-and-hold investors.<\/p>\n
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Obviously, we can't go through every positive Bitcoin news item that has happened over the past year. But there have been three big themes that seem to have driven Bitcoin higher.<\/p>\n
Here's the billion-dollar question. If Bitcoin ultimately gains mainstream adoption as a currency or ends up becoming a mainstream store of value (digital gold), there's a solid case to be made that Bitcoin could ultimately rise to $500,000 or even more. On the other hand, if the mainstream-use case doesn't pan out, or if investor interest starts to fade, it could go the other way just as easily.<\/p>\n
The bottom line is that no investment that can deliver 7x returns in a year is without significant volatility and risk. If you're looking to buy Bitcoin or other cryptocurrencies, make sure you know what you're getting into.<\/p>\n
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\nIf You Bought $1,000 Worth of Bitcoin a Year Ago, Here's How Much You'd Have Today - The Motley Fool<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"