Did you know that if you invested just $100,000 in Bitcoin (CRYPTO: BTC) 10 years ago, you’d be up more than $43 million today? Bitcoin has been soaring in popularity in recent years, proving to be one of the best investments you could have owned over the past decade. Many investors have been hesitant to invest in crypto, but for those who have and held on, the gains have been monstrous.
The big question today, however, is with Bitcoin trading at record levels, can this still be a 10-bagger investment, and can it once again turn a $100,000 investment into at least $1 million?
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If you believe the hype, there’s no question Bitcoin can be a 10-bagger
As more people and businesses around the world use and invest in crypto, that can lead to a surge in demand for Bitcoins, pushing the value of the popular currency up in the process.
Ark Invest‘s Cathie Wood thinks that even though it has hit the $100,000 milestone recently, Bitcoin still has room to go far higher. By 2030, Wood believes it could be worth as much as $1.5 million. Another crypto enthusiast, Jack Dorsey, who is the head of payments company Block and founder of Twitter (now called X), also believes that Bitcoin’s price will exceed $1 million in 2030.
If Bitcoin can indeed hit the $1 million mark, it’s easy to see how investors who buy the digital coin today could easily be sitting on a potential 10-bagger investment, if not more.
Bitcoin is hot right now, but investors should brace for a possible slowdown
The risk in the market right now is that when a stock or, in this case, digital currency, becomes hot, that excitement can take over. Investors see dollar signs and get caught up in the hype, assuming that the current trajectory is just going to continue and that the price of a soaring asset is only going to rise higher in the future.
But while Bitcoin has been an incredible investment over the past 10 years, that also includes some significant crashes along the way. In 2018, the price of the cryptocurrency fell by 71%. And just a few years ago, in 2022, when rising interest rates made investors more bearish on speculative investments, the price of Bitcoin went on to decline by 65%.
There has been an excessive amount of excitement around Bitcoin since President Donald Trump won the election in November, as investors believe he will put into place crypto-friendly policies, which can lead to heightened demand for Bitcoin. And in just the past three months, the cryptocurrency has soared close to 50%.
Investor sentiment can play a big role in how Bitcoin performs, and that makes it an incredibly risky and unpredictable investment to hang on to. There’s plenty of excitement today, but whether that will still be the case in a year or two, especially if there’s a slowdown in the markets, is a big question mark.
Can Bitcoin be a 10-bagger investment if you buy it today?
It’s certainly possible that Bitcoin can turn a $100,000 investment into $1 million, given the hype around crypto these days. But at the same time, I can also see a possibility where it turns a $100,000 investment into less than $50,000, or perhaps even less than $10,000 if there’s an even steeper sell-off.
Ultimately, it all goes back to crypto’s unpredictability and volatility. Excitement can quickly turn to despair and panic in the crypto world, and unless you’re willing to live with those kinds of wild swings and uncertainty, you may be better off looking at some quality growth stocks to invest in, rather than taking a chance on Bitcoin.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Block. The Motley Fool has a disclosure policy.
