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If You Had Invested $1,000 In Bitcoin At Buffett’s First Warning, Here’s How Much It Would Be Worth
It is generally a good idea to follow by Warren Buffett investment advice. There are some examples of this that are as obvious as the potential upside for any investor who chose to buy Apple (NASDAQ: AAPL) action in 2016 – the same year as the Oracle of Omaha.
Yet, every rule has an exception, and not even the legendary Warren Buffett is always right. In fact, the famous investor opined in March 2014 that traders should avoid Bitcoin (BTC).
At that time, the Oracle of Omaha stated that although the technology behind BTC is promising, it is unlikely to gain traction as currencyWhat is interesting is that the billionaire was partially right since, although Bitcoin has gained significant traction as an asset, it is still far from being a competitor to currencies such as the US dollar (USD) or the British pound (GBP).
However, due to its popularity as an investment and its perceived status as digital goldeven buying $1,000 worth of Bitcoin at the time Buffett warned to stay away from cryptocurrency it would have been extremely profitable.
In fact, in March 2014, BTC was trade at around $600, while the current price of Bitcoin is $60,282.
All-time BTC price chart. Source: Finbold
This means that a $1,000 investment in the cryptocurrency ten years ago would be worth almost exactly $100,000 today, or about 9,900% more.
$1,000 invested in BTC in 2014 could be worth $500,000 by the end of 2024
What makes this potential investment even more attractive is that, despite carrying a 9,900% rate of return, early July 2024 is shaping up to be one of the worst times of the year to measure Bitcoin profits.
In recent weeks, the cryptocurrency has taken a significant hit, falling more than 10% in the last 30 days. In fact, if the BTC purchased in March 2014 were sold in March 2024, the hypothetical investor would have turned $1,000 into more than $121,000.
However, there remains a strong possibility of even greater gains in the future, as numerous prominent institutions and experts predict that Bitcoin is far from its cycle highs.
Several months ago, Robert Kiyosaki – the author of the best-seller personal finance book “Rich Dad Poor Dad” – BTC Predicted rise to $300,000 before the year ends and the banking giant Standard Certificate Authority he clung to his BTC Price Target $150,000 for 2024, at the end of May.
If the first prediction comes true, the 2014 BTC investment would rise to $500,000 by the end of December, and even the second, more modest goal would yield profits of $249,000.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.