Investing as little as $1 every day into Bitcoin over five years would have yielded an incredible 12x return. According to James Todaro, the managing partner at Blocktown Capital, an investment of $1,858 into Bitcoin would now be worth over $22,000 even when accounting for Bitcoin’s violent price swings.
A dollar a day keeps bankruptcy away
Following its spectacular crash in December 2017, the term “long-term” and “stable” have been increasingly hard to associate with Bitcoin. While many see its violent price swings as proof that it’s nothing more than a speculative asset, Bitcoin is one of the best safe-haven assets out there.
According to Todaro, even the smallest investment in Bitcoin yield incredible returns. Todaro created a visualization of what investing $1 a day into Bitcoin over the past five years would look like, showing that even Bitcoin’s most dramatic price drops haven’t affected its ROI.
His graph showed that if you would have invested $1 a day in Bitcoin for 5 years from February 2015 to February 2020, the investment would have shown a 12x return. The investment would amount to $1,858, while its current value would be around $22,263.
XRP: better investment than BTC, ETH lags behind
The world’s second-largest cryptocurrency, ETH, proved to be a much lousier investment than Bitcoin.
According to our calculations, investing $1 per day in ETH for 4 years from Feb. 2, 2016, to Feb. 1, 2020, would cost $1461 and yield 46.96 ETH. At current ETH prices, the investment would now be worth around $9,021. While a 6x return is certainly a significant one, it pales when compared to Bitcoin’s 12x.
However, even Bitcoin’s insane return is put to shame by that of XRP. Ripple‘s native cryptocurrency hasn’t been known for its ability to hold value long-term, but rather its ability to settle transactions quickly and efficiently.
Nonetheless, $1 invested every day from Feb. 2, 2015, to Feb. 2, 2020, in XRP would amount to $1,823. The accumulated 117,640 XRP would be worth around $29,400 at current prices. That’s 16x times of the original investment.
While the twelvefold return one would see from Bitcoin is in line with the general view of the coin, XRP’s sixteen fold return will certainly come as a huge surprise to many. The liquidity-focused cryptocurrency, currently the third-largest by market capitalization, has seen its price constantly rise from the beginning of the year and could see a further rise powered by the recent market upturn.
The post What investing $1 daily in BTC, ETH, and XRP would have made you appeared first on CryptoSlate.
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