Bitcoin, the world’s first decentralized digital currency, has gained immense popularity over the last decade. Since its inception in 2009, the value of bitcoin has skyrocketed, making a few early investors very rich. But how much did people really make off bitcoin?
To answer this question, we need to understand the history of bitcoin’s value. In the early days, bitcoin was worth almost nothing. It was only in 2010 when the first bitcoin transaction took place, and the value of one bitcoin was set at $0.003. From there, the value of bitcoin started to grow, with its first major surge occurring in 2013, when the price hit $1,000 per bitcoin.
The real boom, however, came in late 2017, when the price of bitcoin reached its all-time high of almost $20,000. This sudden increase in value made many early investors millionaires. For example, the Winklevoss twins, who famously sued Mark Zuckerberg over the creation of Facebook, invested $11 million in bitcoin in 2013, when the price was around $120 per bitcoin. By the end of 2017, their investment was worth over $1 billion.
But the Winklevoss twins were not the only ones to profit from bitcoin. There are numerous stories of ordinary people who invested a small amount of money in bitcoin and became millionaires. For example, Erik Finman, who was just 12 years old when he invested $1,000 in bitcoin in 2011, became a millionaire by the age of 18. Another example is Kristoffer Koch, who purchased 5,000 bitcoins for $27 in 2009, and then forgot about them for several years. When he remembered his investment in 2013, the value of his bitcoins had increased to almost $900,000.
However, not everyone who invested in bitcoin made a fortune. Many people lost money, especially those who invested in bitcoin during its peak in late 2017. When the price of bitcoin crashed in 2018, many investors lost a significant amount of money. For example, if someone had invested $10,000 in bitcoin when the price was at its peak, their investment would have been worth less than $2,000 by the end of 2018.
Despite the risks involved, many people continue to invest in bitcoin. The value of bitcoin has been on the rise again in recent months, and some experts predict that it could reach new heights in the coming years. However, it is important to remember that investing in bitcoin is still a risky venture. The value of bitcoin is highly volatile and can fluctuate wildly in a short period of time. It is also unregulated, meaning that investors have no legal protection if something goes wrong.
In conclusion, the amount of money people made off bitcoin varies greatly. Some early investors became billionaires, while others lost their life savings. Investing in bitcoin is still a risky venture, and it is important to approach it with caution. If you are considering investing in bitcoin, it is important to do your research and only invest money that you can afford to lose.