If You Bought $1,000 Worth of Bitcoin a Year Ago, Here’s How Much You’d Have Today – The Motley Fool

If You Bought $1,000 Worth of Bitcoin a Year Ago, Here’s How Much You’d Have Today – The Motley Fool

Bitcoin has beaten the stock market, but you might be shocked by how much.

It’s been a wild ride for Bitcoin throughout its 11-year history, and that’s been especially true over the past year. Not only did the COVID-19 pandemic drive Bitcoin’s price lower initially, but it also seems to have helped accelerate investor interest in the leading cryptocurrency.

Here’s a look at how Bitcoin has performed for investors over the past year and what has driven its performance.

The short answer

I won’t keep you in suspense. Bitcoin has increased in value by 612% over the past year, as of this writing. This means that a $1,000 investment in Bitcoin made one year ago would be worth just over $7,100 now.

During the same period, the S&P 500 index, which is generally considered to be the best gauge of overall stock market performance, has delivered a 50% total return. Several stocks have doubled and tripled over the past year as the market rewarded companies that benefited from the stay-at-home economy. But there are very few stocks that have delivered returns in the same ballpark as Bitcoin. So, it’s fair to say that Bitcoin has been a big success as an investment over the past year for buy-and-hold investors.