If you invest $100 into Bitcoin today, don’t expect to make a fortune. However, you could still make some solid gains.
Given that cryptocurrencies are dangerous investments, many people interested in them would like to start with lower sums. A 30% price reduction or gain in a single day is not unheard of in the cryptocurrency market, where prices of cryptocurrencies can see significant volatility quickly.
The most apparent option for someone wishing to enter the world of cryptocurrencies would be to start with Bitcoin, now the most popular cryptocurrency. We’ll provide some information on what you can anticipate if you buy $100 in Bitcoin in 2023. If you’re wondering, “What if I invested $100 in Bitcoin today?”
Can I invest $100 in Bitcoin today?
Small Step into Bitcoin: You can buy $100 worth of Bitcoin right now. You don’t even have to purchase 1 Bitcoin in its whole; you can invest as little as you desire. You can typically purchase tiny amounts of Bitcoin, even only a few dollars’ worth, on cryptocurrency exchanges.
How far can a $100 investment into Bitcoin go?
You can examine the historical performance of a $100 investment in the table below. We suppose the $100 was invested in BTC on January 1 of each year and kept until August 2023.
|Year||Bitcoin price on January 1||BTC was acquired with a $100 investment||Investment value as of June 14, 2023||ROI|
|2011||$0.30||333.33 BTC||$8.78 million||87,800x|
The days of a little Bitcoin investment having the potential to become a fortune are probably over. The tremendous multiples that might be obtained when purchasing Bitcoin in 2011, 2012, and 2013 are simply not achievable given the current market value of the cryptocurrency.
Despite being down 62% from its all-time high, Bitcoin has a market valuation of $511 billion at the time of writing. It probably isn’t a good idea to anticipate a 100x or even a 10x return on an asset that is already this big.
Let’s investigate how $100 is invested in Bitcoin.
Small Step into Bitcoin, $100 will, as of this writing, get you 0.0038 BTC. Let’s investigate how $100 invested in Bitcoin today would fare under various circumstances.
|The hypothetical performance of $100 invested into Bitcoin (0.0038 BTC) on August 24, 2023|
|Bitcoin price||Value of investment||ROI|
|$68,770 (current all-time high)||$265||2.61x|
It’s important to note that many cryptocurrency and traditional investors, such as Ark Investment Management’s Cathie Wood and Kraken CEO Jesse Powell, think that Bitcoin has a chance of reaching $1 million and the price targets of $100,000 or $200,00 in the future. The only way for Bitcoin to get the seven-figure mark is if central banks and other financial institutions significantly increase their use of the cryptocurrency by replacing a sizable portion of their fiat and gold deposits.
Is it worth investing in Bitcoin in 2023?
Even if we’ve hopefully shown that you shouldn’t anticipate making a $100 investment in Bitcoin into a fortune, that doesn’t imply it won’t be a good choice as a crypto investment in 2023.
The fact that BTC is selling 62% below its all-time high could be the first sign that now is an excellent time to buy Bitcoin. While this has led some investors to wonder if Bitcoin is dead, the current price of BTC can also be a perfect opportunity to purchase it at a discount.
In other words, Bitcoin has already shown that its price can rise far above where it is, which may inspire investors with more confidence and encourage them to purchase BTC at these levels. Of all, there is no assurance that BTC’s price will return to where it was.
The second pro-Bitcoin reason is that the subsequent Bitcoin halving will take place in 2024. More specifically, according to the most recent projections, the halving will occur in March 2024. Historically, Bitcoin market rallies have come before halving, so if this pattern holds this time, it would be a good idea to buy some BTC before the next halving.
In addition, Bitcoin remains the dominant player in the cryptocurrency market, and its market capitalization is more than twice as large as the second-ranked Ethereum.
Even though Bitcoin doesn’t quite have all the fancy features offered by some of the newer contenders in the blockchain space, Bitcoin protocol has been proving itself for over a decade as a highly robust and reliable digital currency. So, if there is a future for cryptocurrency, Bitcoin will likely continue playing a huge role.
How much Bitcoin should I buy?
Your financial condition and level of risk tolerance will determine the response to this inquiry. As we’ve already discussed, investing a smaller sum in Bitcoin will unlikely produce life-altering outcomes, but it may still yield a return. To find out how much you might make in certain situations, use our Bitcoin profit calculator.
When compared to conventional investments like equities and bonds. Bitcoin is still a high-risk investment, although it is less dangerous than many other cryptocurrencies. It would be best to consider the dangers connected to Bitcoin storage and the risk of price volatility. If your BTC is stolen, you won’t have many options because Bitcoin transactions are irrevocable. Therefore, learning how to secure your cryptocurrency is exceptionally crucial. Using a hardware Bitcoin wallet is the best approach to protect your cryptocurrency.
Before making any investments, always think about your financial status, and never risk more than you are willing to lose.
Bitcoin price prediction 2023-2024: Bitcoin could surpass its previous all-time high next year
If you’re interested in exploring possible future scenarios for Bitcoin, check out our Bitcoin price prediction page.
Our algorithmically generated Bitcoin price prediction indicates that the most prominent cryptocurrency. The world could experience a significant rise to the top between now and the beginning of 2024. If Bitcoin exceeds our predictions in the upcoming months, a price goal of $100,000 may be in the cards.
By the end of this year, Bitcoin is expected to surpass the $40,000 level, and by the first quarter of 2024, it will reach $75,000 or more. BTC is anticipated to reverse course and rise as high as $84,000 in June. Coincidentally, the price of Bitcoin is likely to increase just as the subsequent halving. Which is anticipated to take place in 2024, approaches.
Remember that the forecast above is based on technical data gathered in mid-June 2023 and may change. Significantly in the future, mainly if unanticipated market events significantly alter investor mood.
Which crypto should I invest $100 in?
Consider purchasing coins with a low market capitalization if you want a chance. To invest in cryptocurrencies and turn a relatively small sum, like $100, into a sizeable sum of money. You should be aware that this can sometimes resemble gambling more than investing.
You typically have to accept more significant risks to have the potential for greater returns. The same holds for crypto. Low market cap currencies come with a variety of concerns. And these risks become more apparent the lower the market cap gets:
- Minimal liquidity
- Projects are not guaranteed to fulfill their commitments because they are frequently in the early stages.
- Numerous low market cap projects are generally of poor quality.
Scam danger is greater.
Despite the numerous dangers, finding a winner among low-market-cap coins can be pretty profitable. However, if you purchase coins with low market capitalizations, you’ll likely lose money than gain it.
There are also some mid-market-size cryptocurrencies. That could soar in the future if you’re not comfortable with low market-cap cryptocurrencies.
Investing in Bitcoin is not wrong, but don’t expect significant gains.
Small Step into Bitcoin: If you think Bitcoin will be successful in the long run, purchasing Bitcoin in 2023 could be a wise investment. We can claim that present buyers are “buying the dip” because Bitcoin is currently trading well below its all-time high. Check out our beginner’s guide to investing in Bitcoin for additional details.
The impending halving of Bitcoin in 2024 may mark a turning point for the BTC markets and lay the groundwork for a fresh, bullish rise. Bitcoin is still regarded as the best cryptocurrency to invest in over the long run.