For those that always wondered. Cryptocurrency

[Michie]

The History of Cryptocurrency: Bitcoin's Long, Strange Trip to Best-Performing Asset of the Decade​

Allow us to guide you through the history of Bitcoin, from its origins in the 1970s to its skyrocketing value today and uncertain future.

In early May 2021, a single Bitcoin is worth about $55,000. According to CNBC, if you had invested $100 in Bitcoin in its beginning over a decade ago, you would have been able to buy a thousand Bitcoins. At time of writing, those would be now worth over $55 million. Long before Bitcoin blew up, though, it was simply a theoretical concept in an academic paper, published by an anonymous person using a pseudonym. Read on for a brief history of Bitcoin, from its origins in the 1970s to the influence of the 2008 financial crisis, to the recent massive expansion of cryptocurrency and the non-fungible tokencraze taking over the internet world today. It's a tale of mystery, mistrust, risk, and reward (plus: a multi-million dollar pizza).

1

What is Bitcoin?​

Continued below.

The History of Cryptocurrency: Bitcoin's Long, Strange Trip to Best-Performing Asset of the Decade

Allow us to guide you through the history of Bitcoin, from its origins in the 1970s to its skyrocketing value today and uncertain future.

www.esquire.com

 

[timewerx]

The History of Cryptocurrency: Bitcoin's Long, Strange Trip to Best-Performing Asset of the Decade​

Allow us to guide you through the history of Bitcoin, from its origins in the 1970s to its skyrocketing value today and uncertain future.

In early May 2021, a single Bitcoin is worth about $55,000. According to CNBC, if you had invested $100 in Bitcoin in its beginning over a decade ago, you would have been able to buy a thousand Bitcoins. At time of writing, those would be now worth over $55 million. Long before Bitcoin blew up, though, it was simply a theoretical concept in an academic paper, published by an anonymous person using a pseudonym. Read on for a brief history of Bitcoin, from its origins in the 1970s to the influence of the 2008 financial crisis, to the recent massive expansion of cryptocurrency and the non-fungible tokencraze taking over the internet world today. It's a tale of mystery, mistrust, risk, and reward (plus: a multi-million dollar pizza).

1

What is Bitcoin?​

Continued below.

The History of Cryptocurrency: Bitcoin's Long, Strange Trip to Best-Performing Asset of the Decade

Allow us to guide you through the history of Bitcoin, from its origins in the 1970s to its skyrocketing value today and uncertain future.

www.esquire.com

It may not actually be $55 million due to "volatility drag".

And because Bitcoin is far more volatile than traditional stocks and because the effect of volatility drag is compounding, the return after more than 10 years is going to be substantially less than $55 million.

The $ return of the bitcoins you're holding won't be the same after several years as if you bought them yesterday.

Guide to Volatility Drag for Financial Advisors

Volatility drag can measure the rate at which your portfolio can lose value. Here’s how to calculate it an what you need to know as a financial advisor.

smartasset.com

 

[Michie]

It may not actually be $55 million due to "volatility drag".

And because Bitcoin is far more volatile than traditional stocks and because the effect of volatility drag is compounding, the return after more than 10 years is going to be substantially less than $55 million.

The $ return of the bitcoins you're holding won't be the same after several years as if you bought them yesterday.

Guide to Volatility Drag for Financial Advisors

Volatility drag can measure the rate at which your portfolio can lose value. Here’s how to calculate it an what you need to know as a financial advisor.

smartasset.com

I’m not convinced of this sort of currency. There is not a chance I’d invest in it at this point. Plus the fact that I find it all very confusing.

 

[timewerx]

I’m not convinced of this sort of currency. There is not a chance I’d invest in it at this point. Plus the fact that I find it all very confusing.

The underlying blockchain tech has important real world applications which can translate into real world value.

However, for the most part, the value of cryptocurrencies are speculative. It's similar to stocks but with extreme levels of volatility and that extreme volatility goes both directions (up or down price movement or bear or bullish seasons) which makes it far more risky than stocks.

 

[Michie]

The underlying blockchain tech has important real world applications which can translate into real world value.

However, for the most part, the value of cryptocurrencies are speculative. It's similar to stocks but with extreme levels of volatility and that extreme volatility goes both directions (up or down price movement or bear or bullish seasons) which makes it far more risky than stocks.

Yeah we do stocks. Crypto, etc. is a hard no at this point and our financial advisor agrees.

 

[timewerx]

Yeah we do stocks. Crypto, etc. is a hard no at this point and our financial advisor agrees.

If you'll be just holding crypto, it's definitely not a good time now and it's definitely not good for long term holding. It's mainly a "high risk asset" and only good for short and medium-term trading with highly experienced traders.