If you like see-saws, you might like investing in Bitcoin as well. Bitcoin investing does need the courage of your convictions but the rewards can be unparalleled. A glance at Bitcoin rates starting in 2010 will tell us that the currency has been through many ups and downs. While the peak was reached between 2013 and 2014, by 2015 Bitcoin had fallen again to US $200 levels and has been steadily inching its way towards $1000 levels again.
However, even in the short term Bitcoin has been volatile, while on May 24, 2016 Bitcoin prices reached US $775, by June 23, 2016 they had again fallen to US$ 560. At the time of writing of this article one Bitcoin was worth US$ 673 and most of the recent rise in Bitcoin price was due to the uncertainties caused by ‘Brexit’ or Britain’s withdrawal from the European Union. – Source: Coindesk.com Bitcoin beats every other investment
Compound Annual Growth Rate (CAGR) is a way of measuring return on investments over a given period of time. In order to calculate CAGR we need a beginning value, an ending value and a given time period.
In short the formula for CAGR = (Ending Value/Beginning Value) (1/No. Of Years) – 1
CAGR gives us an idea of how much an investment grew at an annual rate for the period of time we are looking at. If we compare CAGR of various investments in the last 3 years, we get a picture that Bitcoin has far outperformed traditional investment products. As is clear from this table, Bitcoin is leaps and bounds ahead of most major assets when it comes to returns, be they stocks, commodities or real estate. Should you be in Bitcoin?
Well, it really depends on who you are and how much of a risk […]
