Cryptocurrency is booming right now, and it seems to be all anyone in finance wants to talk about.
Those of us who are just starting to pay attention now are probably kicking ourselves for ignoring the opportunity years ago — when it would have been much cheaper to dip our toes in the water.
One email a day could help you save thousands
Tips and tricks from the experts delivered straight to your inbox that could help you save thousands of dollars. Sign up now for free access to our Personal Finance Boot Camp.
By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time.
Please read our Privacy Statement and Terms & Conditions.
How much was ETH worth 5 years ago?
Ethereum is a decentralized blockchain (a database of cryptocurrency transactions). It supports thousands of cryptocurrencies and NFTs, including its native coin, Ether (ETH). It’s the second-largest cryptocurrency, after Bitcoin.
According to Coindesk historical data, the price of ETH five years ago (on April 12, 2016) was $7.10 for one coin. If you bought $10 worth of the currency, you’d have 1.4 ETH. ($10 divided by $7.10 is 1.4.)
How much is ETH worth today?
The price of Ether as of April 12, 2021 is $2,144.42 for one coin. That’s 302 times the price five years ago — about 30,000% growth!
The Ascent’s picks for the best online stock brokers
Find the best stock broker for you among these top picks. Whether you’re looking for a special sign-up offer, outstanding customer support, $0 commissions, intuitive mobile apps, or more, you’ll find a stock broker to fit your trading needs.
See the picks
If you bought $10 of ETH 5 years ago, here’s how much you’d have today
Growth like that is too phenomenal for most of us to fathom, so we’ll do the math for you. If you bought $10 worth of Ethereum five years ago, you’d have about $3,020 today ($10 x 302). That’s not exactly retirement money, but it’s not bad for a $10 buy-in.
For anyone who saw the potential in cryptocurrency back then and did want to bet an early retirement on it, they could probably have reached that goal with an investment of about $4,100. Five years ago, $4,139 worth of Ethereum, left untouched, would be about $1.25 million today, enough to support $50,000 in annual living expenses for the next 25 years.
Is Ethereum a good investment now?
Like many other cryptocurrencies, Ethereum is having a moment right now. Its value is soaring — up 1,224% from a year ago, and almost constantly rising in value since fall of 2020.
So does that make it a good investment?
If your reason for investing in cryptocurrency is to get rich quickly, it’s not a good investment — no investment is if that’s your motivation. No investment comes with guaranteed returns, and crypto is more volatile than any other market.
All of cryptocurrency is just over a decade old, and Ethereum has been around for less than six years. Even though we’ve seen phenomenal jumps in value in that time, we’ve also seen significant drops. And the market doesn’t have enough history — like the traditional stock market — to figure out whether it stands to stabilize and yield positive returns in the long run.
Folks who’ve earned thousands or millions of dollars in returns with the currency made big bets years ago and got lucky. Crypto investment is best for money you’re willing and able to lose — because your financial future can’t depend on luck.
Buying your first stocks: Do it the smart way
Once you’ve chosen one of our top-rated brokers, you need to make sure you’re buying the right stocks. We think there’s no better place to start than with Stock Advisor, the flagship stock-picking service of our company, The Motley Fool. You’ll get two new stock picks every month, plus 10 starter stocks and best buys now. Over the past 17 years, Stock Advisor’s average stock pick has seen a 581% return — more than 4x that of the S&P 500! (as of 8/18/2021). Learn more and get started today with a special new member discount.
To get started with cryptocurrency trading, check out our list of the best cryptocurrency exchanges and apps.
View more information: https://www.fool.com/the-ascent/buying-stocks/articles/if-you-bought-10-worth-of-ethereum-5-years-ago-heres-how-much-youd-have-today/