If you don’t want to hear how much you’d have if you’d invested $1 a day in bitcoin over the last five years, look away. Suffice to say, it would have been a very good rate of return indeed.
$1 a Day in Bitcoin Over 5 Years
Managing Partner at Blocktown Capital James Todaro shared a captivating video clip on Twitter. It shows what would have happened if you’d invested $1 a day in bitcoin over the last five years…
Spoiler alert: you’d have $22,263 worth of BTC today.
What it would look like if you invested $1 a day into bitcoin over the past 5 years.
— James Todaro (@JamesTodaroMD) February 1, 2020
Of course, you would have spent $1,858 which brings your profit down to $20,405. Then there’s the question of how much tax you have to pay depending on where you live.
But still, for less than a “cup of coffee” (or even a can of Coke) a day, you could have accumulated more than $20k of bitcoin.
So if you think that $1 a day in BTC is too small to amount to anything, Todaro just proved you wrong.
Circumstances are somewhat different now than in 2015 when bitcoin was worth $1. However, as the video shows, $1 in bitcoin was still profitable even when it hit its record $20k in 2017.
Can You Actually Invest $1 a Day?
The video is impressive and naturally commanded a lot of comments, mostly praising the number-one cryptocurrency. However, as interesting as it is to see, one follower Bitcoin Rich brought up an interesting point. After all, can you actually invest $1 in BTC a day?
Are there any exchanges that will allow you to buy such a small amount and would it be worth it with commissions? For example, you can forget about an exchange like Coinbase. It has a $2 minimum purchase and they’d charge you $1 for it.
Don’t get me wrong it’s interesting and a great effort, but where are you able to buy $1 a day without fees?
Minimum buy on Coinbase is $2 and they’d charge you $1 per purchase.
— Bitcoin Rich (@Overtino) February 2, 2020
Then there’s LocalBitcoins, where some providers may entertain you with a $1 purchase. But you’ll probably end up buying BTC for above its market price, meaning you’d get less than $1.
One Lightning Network researcher Stelios pointed to Sparkswap, the first cryptocurrency exchange built on the Lightning Network. However, that wasn’t around when this supposed five-year investment began.
So, if you were busy kicking yourself for buying a daily beverage instead of bitcoin, there’s some solace for you. You wouldn’t have had the tools to invest like this before… But you could try stacking sats over the next five years and compare the results then.
How gutted are you that you didn’t buy $1 of BTC per day for the last 5 years? Let us know in the comments below!
Images via Shutterstock, Twitter @Overtino @JamesTodaroMD