Investing €100 in Bitcoin does not make you rich but allows you to obtain interesting profits over time with an investment accessible to all. Here’s how much you would have earned over time.
The world of cryptocurrencies is constantly evolving and Bitcoin continues to be the most popular and talked about cryptocurrency on the market, but not everyone is willing to invest large sums of money initially. This is why many wonder if it is possible to invest only 100 euros in Bitcoin and how much one could earn with such a sum. For example, if you had invested 100 euros in Bitcoin at the beginning of 2021, the return would have been very high, as the value of Bitcoin has skyrocketed during this period. However, the turbulence seen in 2022, from the crash of Terra Luna to the failure of the cryptocurrency platform FTX, has however shown that cryptocurrencies are risky investments and their value can fluctuate greatly in a short period of time: a drop of 30% of the price of Bitcoin in a single day is not all that out of the ordinary.
For those only looking to invest a small amount of money, Bitcoin remains the obvious choice. But what can you expect if you invest $100 in Bitcoin today? In this guide, we’ll explore what could happen to an investment over time. It must be said that one cannot expect to make a fortune with such a small investment, but if the Bitcoin bet pays off, some gains can still be made. The important thing is always to be aware of the risk you are running and to have a well-defined investment strategy.
Bitcoin is a decentralized cryptocurrency created in 2009, which is based on blockchain technology. The blockchain is an immutable, public digital ledger that records all transactions securely and transparently. The network of nodes that manage the Bitcoin blockchain use cryptography to validate and verify transactions and generate new Bitcoins. The maximum number of Bitcoins in circulation is limited to 21 million units, which has helped to increase its value over the years and the interest of more and more investors.
However, the value of Bitcoin has fluctuated markedly over time: from all-time highs of around $69,000 reached in November 2021, prices dropped by more than 75% before picking up again. Investing in cryptocurrencies also involves other types of risks, such as scams and cyber attacks.
To buy and sell Bitcoin, you need to use a cryptocurrency exchange or a trading platform, choosing the one that best suits your needs and strategies. These services allow users to exchange Bitcoin for other cryptocurrencies or for traditional currencies such as the dollar or the euro.
The value of Bitcoin has fluctuated considerably over the years, making it an extremely volatile cryptocurrency. In 2009, when it was created, a Bitcoin was worth less than a cent. In 2017, its value peaked at nearly $20,000 but then fell sharply. In November 2021, the value of one Bitcoin reached an all-time high of around $69,000, before undergoing a new correction.
The fluctuations in value of Bitcoin have been caused by many factors, including market supply and demand, government decisions regarding the regulation of cryptocurrencies, news and announcements regarding Bitcoin and other cryptocurrencies, public perceptions of cryptocurrencies and the competitiveness between different cryptocurrencies. Market volatility has led some experts to criticize Bitcoin as a risky investment, while other proponents believe that Bitcoin’s value will continue to rise over time.
The future prospects of the value of Bitcoin are difficult to predict, but some experts are predicting a further increase in value in the future. There are also a few factors that could limit Bitcoin’s value growth, including increasingly stringent government regulation and competition from other cryptocurrencies that could attract investor attention. Despite the difficulties, Bitcoin has proven to have impressive market strength and looks set to remain a major force in the cryptocurrency ecosystem.
Investments in Bitcoin can lead to substantial gains, but also significant losses. There are numerous examples of investors who have made substantial money by buying Bitcoin at a relatively low price and then selling it at a higher price.
As with any other type of investment, it is important to note that past results do not necessarily guarantee future gains and that investments in cryptocurrencies are always risky.
For example, in 2010 the value of a single Bitcoin was just a few cents, while today the market value of a Bitcoin exceeds $25,000. There have been numerous instances where investors who have bought Bitcoin in the past have made substantial money by selling it at a higher price, but also times where the price has declined.
Here’s how much you could have today if you had invested 100 euros in the past.
|Year||Bitcoin price||Bitcoins purchased with €100||Investment value as of May 12, 2023||ROI|
To determine how much you would have earned if you bought Bitcoin in 2019 and sold at 2021 highs, several factors need to be considered, such as the purchase price, the sale price, and the transaction fees.
Let’s say you bought Bitcoin in May 2019. At that time, the price of Bitcoin was around $7,585 (or €6,750). Let’s also assume you held your Bitcoin until the highs of November 2021, when the price hit nearly $69,000.
Similarly to what we did before, let’s calculate how many Bitcoins we would have bought in 2019: €100/€6,750=0.0148 BTC. If we had had the patience to wait more than two years, managing to guess that November 2021 would have been the absolute maximum for the following months, here’s how much we would have earned:
Bitcoin purchase price in 2019: $7,585 (or €6,750)
Bitcoin selling price in 2021: $66,928 (or €57,784)
capital gain: 0.0148 BTC x €57,784 = €856.06
gross profit: €856.06 -€100 = €756.06
The ROI (Return on Investment) of your Bitcoin investment would be 7.56x, 756%.
However, transaction fees must be taken into account. Transaction fees vary depending on the exchange used and transaction volume. Typically, transaction fees for cryptocurrencies are expressed as a fixed fee plus a percentage of the amount transacted. For an investment of €100, commissions can vary between €8 and €20:
Transaction fees (hypothetical): €12 x 2 (buying and selling) = €24
Net income: €756.06 - €24 = €732.06
So, in this hypothetical scenario, you could have made around $732 if you bought Bitcoin in 2019 and sold at a November 2021 high. Of course, these calculations are based on past data and do not take into account any future price fluctuations, taxes, and of the actual transaction fees you may incur.
The analysis of the potential gain of an investment of 100 euros in Bitcoin today requires the evaluation of multiple factors that can influence the return on the investment.
First, it is important to consider the current price trend of Bitcoin. The Bitcoin price is notoriously volatile and can experience significant fluctuations in a short time. In general, a higher price of Bitcoin increases the potential gain, but also increases the risk of loss.
Also, it is important to consider the transaction and maintenance fees of investing in Bitcoin. Transaction fees may vary depending on the exchange or platform used, while maintenance fees may include the purchase of specialized mining hardware or payment of wallet management fees.
Another factor to consider is the investment holding time. Bitcoin is known for its short-term fluctuations, but a long-term investment can offer more earning opportunities. However, it is important to keep in mind that long-term holding can also increase the risk of loss in the event of a significant fall in price.
Finally, it is important to consider the availability of information and investment management tools. Experienced traders can use technical and fundamental analysis to make informed investment decisions, but new investors can also use tools such as market analysis and price predictions to make more informed decisions.
In general, an investment of 100 euros in Bitcoin today can offer an interesting potential gain, but it is important to carefully consider all the factors that can influence the return on the investment. As with any investment, it is important to evaluate your risk profile and make an informed choice.