Bitcoin is a very volatile asset that is great for the investor’s gains but risky for their losses. This needs to be kept in mind as many especially beginner investors could sell their bitcoins too soon as a consequence of a FUD (fear, uncertainty, and doubt).
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Bitcoin’s overall performance
Let’s have a look at the statistics. Because the numbers in it could give us hints about bitcoin’s overall performance. From the graph below it is obvious, the trend is growing and in comparison to the last years, the growths are more significant as well as the drops (that’s the volatility).
This graph shows the conversion rate of 1 Bitcoin to 1 USD on the first of each month.
But, not everybody is in bitcoin since 2016 or even sooner. So let’s have a look at the year-over-year performance. The source of the data for this consideration is based on the article “Bitcoin historical prices” and table Bitcoin Price Table, 2010-2022 (Yearly).
This table displays Bitcoin Historical Prices on January 1st of each year.
The table displays the average gain of bitcoin over 700% over all years, but there was a HUGE price growth in 2014 that might not have to repeat again. Therefore better to focus more on the last years which better reflect the specifics of the market these days.
What’s the minimal surely profitable bitcoin investment period?
As you can see in the Year-over-year column of the table above, if you would invest in bitcoin only in the years 2015 and 2016, you might end up at a loss. Based on these bitcoin historical data makes sense to invest in BTC for a minimal period of 3 years. Historically, the gains were so far at least 36,6% p.a. on average.
In the case of bitcoin, the longer the term investment the better for gains, but based on the historical data, consider always at least 3 years, and the gains will be surely even higher than mentioned 37% p.a.