Bitcoin returned 307.83% in 2020, not including any transaction fees. After midnight (in the morning) on January 1, 2020, bitcoin's first trade was at $7,205.55 a coin. And the closing trade on December 31, 2020, before midnight was for $29,374.15 a coin.
The 2020 Bitcoin Return: Speculation, and Greater Acceptance
307.8% is an eye popping gain.
And last year, 92% was a heck of a return. Bitcoin lost 73.56% in 2018... and gained a wild 1,318% in 2017. That's one volatile security – bitcoin is speculation not investment.
As I've said in the past, bitcoin comes with no claim on the future value of an income stream, merely the claim on a limited number of future coins. Unlike gold and other precious metal, there is no 'physical' bitcoin.
That doesn't mean you shouldn't own bitcoin or another cryptocurrency – just go into your investment with your eyes open. Holding bitcoin is risky, but if it makes sense in the context of a broader portfolio? Have at it.
Could bitcoin deliver 10%+ gains in 2021? Yeah, its possible – and it could also fall off a cliff. Be appropriately cautious, and have fun. To see how it's done with better resolution, I built a bitcoin return calculator with inflation adjustments.
Source on the 2020 Bitcoin Return Calculations
I sourced historical bitcoin price data from CoinMarketCap.
