Investing in cryptocurrencies has been a popular trend in recent years, with 2024 being a particularly profitable year. As someone who dabbles in this market with a small amount of “play money,” I can attest to its potential for great returns.
However, I often share the story of how I missed out on investing in Bitcoin when it was worth less than $1,000 per coin. Despite my efforts, I couldn’t complete the transfer to a cryptocurrency exchange and eventually gave up. As Bitcoin’s value soared in the following years, I couldn’t help but regret my decision.
This leads to the question: What if you had invested in Ethereum during its early days? How much would your initial investment be worth now?
In July 2014, Ethereum held an initial coin offering (ICO) where investors could purchase Ether (ETH) coins with Bitcoin. A year later, the coins started trading at $0.31 each. As of mid-April 2024, the value of ETH has skyrocketed to $3,157 per coin, marking a 10,000% increase in value.
If you had invested $1,000 at the initial price of $0.31 per coin, you would now have 3,225.81 ETH coins, worth a staggering $10,183,871. And that’s not even the peak value of ETH. On November 9, 2021, it reached a high of $4,815 per coin, which would have made your investment worth $15,532,258.
One reason for the increase in value of cryptocurrencies is the concept of “halving,” where the supply of new coins is limited over time. This is done through complex processes, such as fee burning, staking, and token issuance rate reduction. While Bitcoin has a set schedule for halving, Ethereum’s process is ongoing and more intricate.
However, it’s important to note that investing in cryptocurrencies is not the same as investing in traditional assets. Unlike stocks or real estate, cryptocurrencies do not have any intrinsic value or produce revenue. Their worth is solely based on what others are willing to pay for them, making it a speculative investment.
So while it can be tempting to put a significant amount of money into cryptocurrencies, it’s important to be cautious and not risk more than you can afford to lose. As with any investment, it’s crucial to do your research and understand the risks involved.
