Imagine you bought 1,000 shares of stock at $1 per share 10 years ago, back in 2011. And say your stock did exceedingly well, compounding at 20% per year. Result? Your $1,000 original investment would be worth more than $6000, six times what you put in. Well done!
Now imagine that instead of stock, you’d put the same $1,000 into bitcoin 10 years ago. What would that be worth today? As I write this, about $55 million.
That’s right. One bitcoin went for as little as $1 back in 2011, and as of March 17, 2021, it’s changing hands at more than $55,000. Bitcoin rose more than 200% per year, every year, for the past 10 years. Ever heard of anything like that?
Depending on who you talk to, Bitcoin is smoke and mirrors — a complete hoax — or it’s an investment that’s still in its infancy. Think today’s price is insane? There are folks who think it will one day be more than $1 million.
So, what’s an investor to do? Jump on board before the train completely leaves the station? Invest in other, less-expensive cryptocurrencies? Or, should you simply run the other way?
That’s what we’re going to attempt to determine in this week’s “Money!” podcast.
As usual, my co-hosts will be financial journalist Miranda Marquit and producer Aaron Freeman. We also have a special guest this week: Jimmy Nguyen, President of Bitcoin Association. Jimmy is one of the world’s top Bitcoin and blockchain advocates.
Sit back, relax and listen to this week’s “Money!” podcast:
Not familiar with podcasts?
A podcast is basically a radio show you can listen to anytime, either by downloading it to your smartphone or other device, or by listening online.
They’re totally free. They can be any length (ours are typically about a half-hour), feature any number of people and cover any topic you can possibly think of. You can listen at home, in the car, while jogging or, if you’re like me, when riding your bike.
If you haven’t listened to a podcast yet, give it a try, then subscribe to ours. You’ll be glad you did!
Want more information? Here’s additional reading:
- Money Talks News: Ask Stacy: Should I Buy Bitcoin?
- The New York Times: What is a Blockchain? Is It Hype?
- Business Insider: A crypto ‘fear and greed’ indicator is flashing a warning signal that shows investors are being greedy as top cryptocurrencies hit record highs
- MarketWatch: Don’t fall for the bitcoin bubble, even the Flintstones had a better system, warns economist Nouriel Roubini
- CNBC: Bitcoin and U.S. tech stocks are the biggest market bubbles right now, investors say
- Forbes: Bitcoin Crash 2021: What Next?
- Business Insider: An early bitcoin investor says the best time to buy is when nobody’s talking about it – and warns this isn’t the first crypto bubble
- University of Melbourne: Behind the Bitcoin Bubble
- U.S. News & World Report: 10 Ways to Keep Your Cryptocurrency Safe
- Subscribe to the Money Talks News newsletter
- Take our The Only Retirement Guide You’ll Ever Need course
- Take our Money Made Simple course
I founded Money Talks News in 1991. I’m a CPA, and I have also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.
Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.