Discover Bitcoin’s fascinating journey from its inception to its latest highs and study its spectacular historic returns. Whether or not you are a seasoned investor or new to cryptocurrency, this text supplies insights into Bitcoin’s milestones and the way it stacks up towards different asset lessons.
From its humble beginnings in 2008 to at this time, Bitcoin’s historical past has been comparatively quick however very eventful. The unique protocol for this fashionable digital foreign money was created in 2008 by Satoshi Nakamoto, believed to be a pseudonym for an unknown developer or group of builders.
Nakamoto launched the Bitcoin community only a yr later and started mining the foreign money— an estimated 1 million bitcoins have been mined within the early years.
The creator(s) of this first-of-its-kind asset developed the cryptocurrency in response to the Great Recession of 2007-2009, spurred by a mistrust of the normal banking system and considerations about its stability.
Given the latest values of Bitcoin, it’s arduous to imagine the foreign money first began buying and selling on exchanges in 2010 at beneath $0.10. Since then, it’s skilled astronomical progress and a few fairly wild worth swings.
At its most up-to-date excessive, one bitcoin was price over $64,000—a far cry from buying and selling for pennies in its earliest days.
Whether or not you’re considering of investing in Bitcoin otherwise you’ve held this cryptocurrency for a number of years, it’s enjoyable to look again at this groundbreaking asset’s historical past. Learn on for insights on Bitcoin milestones, historic returns, and the way its returns evaluate to these of different belongings.
Bitcoin Efficiency Milestones
Since being created, Bitcoin has skilled a number of milestones. Right here’s a glance again at a few of the most important moments within the quick historical past of this cryptocurrency:
- In June 2011, Bitcoin noticed its first vital worth spike, climbing to a worth of $29.60 (up from simply $0.30 in January) earlier than declining once more later that yr.
- The second half of 2013 marked one other main spike—from $68 on July 4th to $1,237 on December third earlier than declining once more.
- One in every of Bitcoin’s most important will increase occurred in 2017, with its worth surging from round $1,000 initially of the yr to $19,345 by mid-December.
- The Bitcoin hype cooled in 2018, leading to vital declines—its lowest worth was round $3,232 in December of that yr.
- In 2019, Bitcoin noticed one other spike, hitting $13,813 on June twenty sixth earlier than declining.
- Bitcoin dropped by over 75% in 2022
- Bitcoin continues to hover across the $30k mark in 2023
Bitcoin Whole Return (10 Yr, 5 Yr, 3 Years, 1 Yr)
Whereas Bitcoin isn’t exempt from the volatility cryptocurrencies typically expertise, it’s delivered some spectacular returns over time. Right here’s a take a look at Bitcoin’s annual returns from 2010 to 2022:
| Bitcoin 10-Yr Return Chart | |
| Yr | Return (%) |
| 2011 | 1,473 |
| 2012 | 186 |
| 2013 | 5,507 |
| 2014 | -58 |
| 2015 | 35 |
| 2016 | 125 |
| 2017 | 1,331 |
| 2018 | -73 |
| 2019 | 95 |
| 2020 | 301 |
| 2021 | 90 |
| 2022 | -81.02 |
| 2023 |
And right here’s a take a look at month-to-month returns, if you happen to really feel like getting a deeper dive:
| Bitcoin Month-to-month Returns | ||||||||||||
| Yr | Jan. | Feb. | Mar. | April | Could | June | July | Aug. | Sept. | Oct. | Nov. | Dec. |
| 2010 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 210.99% | N/A | 44.09% |
| 2011 | 73.33% | 65.38% | -8.77% | 346.09% | 149.71% | 84.21% | -17.08% | -38.58% | -37.32% | -36.77% | -8.62% | 58.92% |
| 2012 | 16.10% | -11.31% | N/A | N/A | 4.65% | 29.15% | 39.76% | 8.66% | 22.05% | -9.68% | 12.23% | 7.48% |
| 2013 | 51.07% | 63.55% | 178.70% | 49.66% | -7.48% | -24.31% | 8.92% | 32.76% | 0.64% | 48.82% | 470.94% | -33.15% |
| 2014 | 16.49% | -38.87% | -22.53% | 0.22% | 10.90% | 1.15% | -7.18% | -18.28% | -19.43% | -12.96% | 10.97 | -15.12% |
| 2015 | -31.34% | 16.27% | -3.90% | -3.43% | -2.52% | 14.91% | 7.42% | -19.12% | 2.82% | 31.92% | 21.44% | 13.75% |
| 2016 | -13.98% | 17.95% | -4.71% | 7.91% | 17.92% | 26.68% | -7.19% | -7.72% | 5.97% | 14.89% | 6.27% | 29.75% |
| 2017 | 0.22% | 23.18% | -9.26% | 25.28% | 70.38% | 7.70% | 16.23% | 64.23% | -7.91% | 47.94% | 54.18% | 39.25% |
| 2018 | -25.88% | 0.67% | -32.86% | 33.25% | -18.85% | -14.71% | 20.79% | -9% | -5.67% | -4.06% | -36.54% | -8.18% |
| 2019 | -7.34% | 11.04% | 7.49% | 29.70% | 60.85% | 36.41% | -6.81% | -4.84% | -13.65% | 10.48% | -17.55% | -4.64% |
| 2020 | 29.91% | -8.62% | -24.94% | 34.56% | 9.57% | -3.38% | 24.06% | 2.74% | -7.46% | 28.04% | 42.77% | 46.97% |
| 2021 | 14.37% | 36.41% | 30.11% | -1.78% | -35.38% | -6.09% | 18.63% | 13.42% | -7.02% | 39.90% | -7.22% | -18.75% |
| 2022 | -16.70% | 12.18% | 5.41% | -17.3% | -15.56% | -37.32% | 16.95% | -13.99% | -3.1% | 5.53% | -16.26% | -0.86% |
| 2023 | 39.83% | 0.02% | 23.1% | 2.73% | -6.96% | 11.97% | -4.07% | -11.29% | 3.91% | 28.52% | 8.81% | |
| 2024 |
Whereas Bitcoin has skilled some wild month-to-month worth swings and a few years the place its worth has declined, you’ll be able to see that its declines have been eclipsed by some unimaginable positive aspects. Now let’s discover how Bitcoin’s worth has modified over 10, 5, 3, and 1 years.
Bitcoin 10-Yr Return
Let’s say to procure one bitcoin on August, third 2013, for $1,106.75, its worth on the time. When you held that one bitcoin till August third, 2023, it could’ve been price $29,310.44, and your complete ROI for the ten years can be 2,546.8%.
Bitcoin 5-Yr Return
We’ll additionally assume you bought one Bitcoin for this instance. A single bitcoin was valued at $965.31 on August, third, 2018, and its worth climbed to $29,310.44 by August 2023. Utilizing our calculation above, your complete ROI for these 5 years can be 294.1%.
Bitcoin 3-Yr Return
A single bitcoin was valued at $11,246.20 in August 2020, and its worth climbed to $29,310.44 on the finish of 2021. Your complete ROI for these three years can be 160.6%.
Bitcoin 1-Yr return
When you bought a single bitcoin in August 2022, you’ll’ve paid round $22,626.83. In a single yr, that worth would’ve elevated to $29,310.44. Your complete returns for that yr can be 29.54%.
Bitcoin Multi-Yr Returns In contrast
| Preliminary worth | Closing worth | ROI (%) | |
| 15 years (2008-2023) | $0.000764 | $29,310.44 | 3,839,387,524,500% |
| 10 years (2013-2023) | $1,106.75 | $29,310.44 | 2,546.8% |
| 5 years (2018-2023) | $7,438.67 | $29,310.44 | 294.1% |
| 3 years (2020-2023) | $11,246.20 | $29,310.44 | 160.6% |
| 1 yr (2022-2023) | $22,626.83 | $29,310.44 | 29.54% |
How A lot You’d Have If You Invested $1,000 in Bitcoin 10, 5, 3, or 1 Yr In the past
As a substitute of shopping for one bitcoin, let’s say you determined to invest $1,000 into Bitcoin. Right here’s a take a look at how this $1,000 funding would’ve carried out if you happen to purchased and held your Bitcoin for 10, 5, 3, and 1 years.
| Preliminary Worth | Variety of Bitcoins bought | Closing Worth | |
| 10 years (2013-2023) | $13.30 | 75.19 | $2,203,358.14 |
| 5 years (2018-2023) | $13,880 | 0.072 | $2,110.35 |
| 3 years (2020-2023) | $7,200 | 0.139 | $4,073.15 |
| 1 yr (2022-2023) | $16,605.10 | 0.0602 | $1,765.11 |
Whereas Bitcoin’s earliest buyers would have benefitted probably the most from shopping for and holding their Bitcoin, those that’ve invested lately additionally fared properly.
How Does Bitcoin Evaluate to Different Asset Lessons?
When you’re curious how Bitcoin returns evaluate to these of different asset lessons, right here’s how its annual and complete returns evaluate to gold, actual property, and the S&P 500.
(Spoiler alert: Bitcoin outperformed all three belongings by an infinite margin.)
Bitcoin vs. Gold
When you evaluate Bitcoin’s returns to gold’s returns, you’ll discover a stark distinction. Bitcoin has a mean annual return of 1,576% and a complete return of 18,912% from 2010 to 2022, whereas SPDR Gold Shares had a mean annual return of simply 5.14% and a complete return of 61.67% over the identical interval.
| Yr | Bitcoin Return (%) |
SPDR Gold Shares (GLD) Return (%) |
| 2005 | – | 17.76 |
| 2006 | – | 22.55 |
| 2007 | – | 30.45 |
| 2008 | – | 4.92 |
| 2009 | – | 24.03 |
| 2010 | 9,900 | 29.27 |
| 2011 | 1,473 | 9.57 |
| 2012 | 186 | 6.6 |
| 2013 | 5,507 | -28.33 |
| 2014 | -58 | -2.19 |
| 2015 | 35 | -10.67 |
| 2016 | 125 | 8.03 |
| 2017 | 1,331 | 12.81 |
| 2018 | -73 | -1.94 |
| 2019 | 95 | 17.86 |
| 2020 | 301 | 24.81 |
| 2021 | 90 | -4.15 |
| 2022 | -81.02 | -0.77 |
| 2023 | 156.15 | 12.69 |
Bitcoin vs. Actual Property
Let’s see if actual property fared any higher in comparison with Bitcoin. The cryptocurrency delivered a whopping 1,576% common annual return and an 18,912% complete return from 2010 to 2021, whereas the Vanguard Real Estate ETF had a mean annual return of 13.49% and a complete return of 161.91% over the identical interval.
So, actual property noticed barely increased returns than gold, however it nonetheless didn’t come near Bitcoin’s returns.
| Yr | Bitcoin Return (%) |
Vanguard Actual Property ETF Return (%) |
| 2005 | – | 12 |
| 2006 | – | 35.2 |
| 2007 | – | -16.38 |
| 2008 | – | -36.98 |
| 2009 | – | 29.76 |
| 2010 | 9,900 | 28.44 |
| 2011 | 1,473 | 8.62 |
| 2012 | 186 | 17.67 |
| 2013 | 5,507 | 2.42 |
| 2014 | -58 | 30.29 |
| 2015 | 35 | 2.37 |
| 2016 | 125 | 8.53 |
| 2017 | 1,331 | 4.95 |
| 2018 | -73 | -5.95 |
| 2019 | 95 | 28.91 |
| 2020 | 301 | -4.72 |
| 2021 | 90 | 40.38 |
| 2022 | -81.02 | -26.21 |
| 2023 | 156.15 | 11.79% |
Bitcoin vs. S&P 500 (Inventory Market)
The S&P 500 didn’t fare too a lot better in its head-to-head with Bitcoin. From 2011 to 2023, the Vanguard S&P 500 ETF delivered a mean annual return of 15.74% and a complete return of 173.14%. Whereas these numbers aren’t too shabby, Bitcoin’s common annual return for a similar interval was a whopping 819%, and its complete return was 9,012%.
| Yr | Bitcoin Return (%) |
VOO, Vanguard SP500 ETF Return (%) |
| 2011 | 1,473 | 2.09 |
| 2012 | 186 | 15.98 |
| 2013 | 5,507 | 32.33 |
| 2014 | -58 | 13.63 |
| 2015 | 35 | 1.35 |
| 2016 | 125 | 11.93 |
| 2017 | 1,331 | 21.78 |
| 2018 | -73 | -4.42 |
| 2019 | 95 | 31.46 |
| 2020 | 301 | 18.35 |
| 2021 | 90 | 28.66 |
| 2022 | -81.02 | -18.15 |
| 2023 | 156.15 | 26.33% |
How Does Bitcoin Evaluate to The Greatest Performing Shares?
We’ve analyzed how Bitcoin compares to gold, actual property, and the inventory market, however how does it stack up towards a few of the best-performing shares? Right here’s how this fashionable cryptocurrency stacks up towards main firms like Amazon, Apple, Berkshire Hathaway, JP Morgan, Microsoft, Visa, and Walmart.
We seemed on the common annual and complete returns for every asset. This knowledge assumes to procure the asset in 2010 and held it till 2023.
| Asset | Common annual return (%) | Whole return (%) |
| Bitcoin | 1,576% | 18,912% |
| Amazon | 35.54% | 426.48% |
| Apple | 33.22% | 398.61% |
| Berkshire Hathaway | 14.31% | 171.76% |
| JP Morgan | 13.53% | 162.40% |
| Microsoft | 23.92% | 287.04% |
| Visa | 23.10% | 277.37% |
| Walmart | 10.08% | 120.94% |
The Backside Line – Bitcoin Historic Returns
Whereas some buyers could also be skeptical about cryptocurrency, citing considerations over market volatility and a excessive danger of loss, Bitcoin’s efficiency over time paints a rosy image. With its longevity and astronomically excessive returns, Bitcoin has been definitely worth the danger for a lot of buyers—particularly early adopters.
After all, historic efficiency doesn’t assure future returns. So if you happen to’re contemplating investing in cryptocurrency, solely make investments what you’ll be able to afford to lose.
