Hodl Bitcoin: From £100 to £1.3 Million
Discover how holding £100 worth of bitcoin for 12 years can lead to massive gains, now valued at £1.3 million. Learn why hodling your bitcoin is a smart investment strategy.
12/9/20241 min read
The Importance of Holding Your Cryptocurrency: Lessons from Bitcoin’s History
Investing in cryptocurrency is not just about timing the market but also about time in the market. Historical data from Bitcoin shows how patience pays off for long-term holders.
Why Holding Matters
Cryptocurrency markets are known for their volatility. Short-term traders might make quick profits, but the real winners are those who HODL (Hold On for Dear Life). Let’s break down how holding Bitcoin over the years could have turned a modest investment into a significant return:
1. Four Years Ago (2019):
• December 2019 Price: Around £5,700.
• December 2023 Price: Over £26,000.
• If you had invested £100 in Bitcoin in late 2019, your investment would now be worth more than £450 .
2. Eight Years Ago (2015):
• December 2015 Price: About £300.
• December 2023 Price: Over £26,000.
• A £100 investment would have grown to over £8,600 .
3. Twelve Years Ago (2011):
• December 2011 Price: Around £2.
• December 2023 Price: Over £26,000.
• Your £100 investment would now be worth an astonishing £1.3 million .
Key Takeaways
• Compounding Returns: The power of holding comes from the exponential growth of the crypto market.
• Market Cycles: Cryptocurrencies typically go through cycles of boom and bust. Holding through downturns allows investors to reap rewards in the next bull market.
• Avoiding FOMO and Panic Selling: Many investors lose out by selling during dips and buying back during peaks. A holding strategy reduces emotional decision-making.
Conclusion
The lesson from Bitcoin’s history is clear: Patience is key. Cryptocurrencies are a long-term investment, and those who can weather the ups and downs are often the ones who see life-changing returns.