Investing $100 in Bitcoin in 2010 Would Have Led to $75 Million in Profit

Bitcoin bull run

Earlier this week, Tai Lopez, the highly regarded investor and philanthropist, revealed that a $100 investment in bitcoin in 2010 would have led to a $75 million profit.

Within eight years, bitcoin has evolved into the most valuable and secure decentralized financial network in history, achieving a $72 billion market cap. No other decentralized technology has ever secured such a large market cap.

Factors Behind the Exponential Growth of Bitcoin

In general, the demand for bitcoin and cryptocurrencies is increasing at a rapid rate. Particularly, casual, professional, and institutional investors are beginning to adopt bitcoin as a safe haven asset, digital currency, and a store of value. Because it is decentralized, governments and authorities are limited in what they can restrict and regulate.

As prominent venture capitalist and NBA’s Golden State Warriors owner Chamath Palihapitiya stated:

“Absolutely not [bitcoin is not a fraud]. It cannot be a fraud. What countries can constrain today is how it [bitcoin] is effectively traded but it cannot be controlled. It is a fundamentally distributed system that exists peer to peer. And so to the extent that you can basically eliminate the will and the actions of every single person in the world, you can eliminate it. But in the absence of that, the genie is fundamentally out of the bottle.”

Outside the realm of early-stage investors in bitcoin such as Tim Draper and Palihapitiya, investors who were previously skeptical toward bitcoin and condemned the digital currency have started to acknowledge the growing demand for bitcoin and cryptocurrencies.

Most recently, Mark Cuban confirmed that he has purchased several bitcoins through a bitcoin exchange-traded note (ETN) in the Swedish stock market. XBT Provider, one of the few bitcoin ETN providers, has been operating in the Swedish Nordic Nasdaq, providing liquidity to professional traders and institutional investors.

“It is interesting because there are a lot of assets which their value is just based on supply and demand. Most stocks, there is no intrinsic value because you have no true ownership rights and no voting rights. You just have the ability to buy and sell those stocks. Bitcoin is the same thing. Its value is based on supply demand. I have bought some through an ETN based on a Swedish exchange,” said Cuban at the Vanity Fair New Establishment Summit in Los Angeles.

Many analysts, traders, investors, developers, and entrepreneurs remain certain that as bitcoin continues to evolve as the leading decentralized financial network, its market cap would surpass the $1 trillion mark and challenge existing financial systems such as fiat money, reserve currencies, and assets such as gold.

Earlier this year, Dennis Porto, a bitcoin investor and Harvard academic, told Business Insider that the bitcoin price can very likely reach $100,000 if it follows the Moore’s law.

“Moore’s law specifically applied to the number of transistors on a circuit but can be applied to any digital technology … Any technology that is growing exponentially (i.e., ‘following Moore’s law’) has a doubling time,” noted Porto.

Based on bitcoin’s maximum supply of 21 million, the price of $100,000 per bitcoin would lead to a $2.1 trillion market cap for bitcoin.

Trading volumes are rising but volatility is decreasing. Positive indicator of long-term growth.

Kay Van-Petersen, a senior analyst at Saxo Bank, who accurately predicted the bitcoin price surge in early 2017 when the bitcoin price surpassed $2,000, also stated that there is a strong case for bitcoin reaching a value of $100,000.

“Volumes are going up, volatility is going down. A lot of people talk about the volatility, but if you are in Zimbabwe or Venezuela, this volatility is nothing. This is the interesting thing to me. I think in the West, a lot of people view it is as speculative, but emerging markets will get it, their needs will be different,” Van-Petersen explained.

Acknowledging that bitcoin is still at its early stage in development, adoption, and scalability, newly emerging investors in the cryptocurrency market are not late in investing in bitcoin and understanding the technology behind the cryptocurrency.

Joseph Young is a finance and tech journalist based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.