Last year was a true coming-out party for virtual currencies. In just one year’s time, the combined market cap of all digital coins rocketed higher by nearly $600 billion, which works out to more than a 3,300% increase on a percentage basis.
It’s perhaps the greatest single-year performance we may ever witness for any asset class. Leading that charge was the world’s most popular cryptocurrency, bitcoin.
Even though bitcoin “only” rose in value by 1,364% last year, which would appear subpar relative to its peers, it’s risen from less than $0.01 in March 2010 to a current value of more than $8,500 per coin. That’s not too shabby of a return in just a shade over eight years!
In fact, a $1,000 investment in March 2010, assuming you found someone willing to part with that many bitcoin back then, would have been worth billions of dollars today. A good number of cryptocurrency investors view bitcoin and its underlying blockchain technology — the digital, distributed, and decentralized ledger responsible for recording transactions in a transparent and unchanging manner — as revolutionary.
After all, bitcoin was the very first digital currency to become investable back in 2010, and its blockchain offered a means of moving money from one party to another without using traditional banking networks. Bitcoin also derives value from the perception that it’s scarce. Read more from fool.com…
thumbnail courtesy of fool.com