How I Received a Five-Times Return on Investment (ROI) Passively In Months As A Student.
A complete breakdown of how I received a five-times ROI
I would like to clear it out right away with a disclaimer that this is not a piece of financial advice, this is just an experience that I had last year investing at the right time in a technology I believed in. So I would urge you to do your due diligence before taking action.
Now that the disclaimer is out of the way I would like to explain how exactly I found an opportunity and invested my money. As you are all aware of the fact that a deadly outbreak happened last year called coronavirus or COVID-19 and the world went into lockdown to keep ourselves and our loved ones safe and protected from the virus. Due to the lockdown, the world was in a state that no one ever expected it to be in. The unemployment rate skyrocketed due to which 7.7 million people were laid off from their jobs by June 2020. Most of these people were service workers who were typically involved in providing on-site duties or face-to-face interactions. This lockdown did not just affect a small percentage of the businesses, it affected every business in one way or another and before figuring out a work from the home system, the whole world was in a state of panic. Due to which the stock market collapsed, which provided hundreds of people with an opportunity to invest their money somewhere to end up with a profit, once the outbreak goes away.
Looking at the opportunity most of the people invested in the stock market and bought their favourite stocks like Tesla, Apple, Google, or Amazon and it ended up giving them a very high return on investment (ROI) to the ones who invested in them, according to today’s stock prices. But I took a different route and invested in cryptocurrency instead.
Out of approximately four thousand cryptocurrencies, I choose the biggest and the most popular cryptocurrency in the world, Bitcoin.
So what exactly is Bitcoin and why did I invest in it?
Bitcoin is a digital currency created in January 2009. It follows the idea set out in a whitepaper made by the mysterious and anonymous person, Satoshi Nakamoto. The identity of the person who created this technology is still a mystery but the concept is completely different from any physical currency in the world.
Bitcoin offers the promise of lower transaction fees than any traditional online payment mechanism and is operated by a decentralized authority, unlike government-issued currencies. Bitcoin is not backed by any banks or governments, nor are individual bitcoins valuable as a commodity. And there is not a single physical bitcoin ever produced.
So to understand why the cryptocurrency is getting popular day by day you need to understand how it works and what makes it the most secure form of currency.
Bitcoin is a collection of computers or nodes, that all run Bitcoin’s code and store its blockchain. A blockchain can be thought of as a collection of blocks. In each block is a collection of transactions. Because all these computers running the blockchain has the same list of blocks and transactions and can transparently see these new blocks being filled with new Bitcoin transactions, no one can cheat the system. Anyone, whether they run a Bitcoin “node” or not, can see these transactions occurring live. To achieve a nefarious act, a bad actor would need to operate 51% of the computing power that makes up Bitcoin. Bitcoin has around 47,000 nodes as of May 2020 and this number is growing, making such an attack quite unlikely.
Keeping in mind the security and the reliability it offers, I invested in it in March 2020 because I knew already that it was going to hit an all-time high, crossing the old all-time highest value of $20,000 which it hit in 2017, as another halving was expected to happen in May of 2020.
Due to an unexpected crash in the stock market and uncertainty in the world, the bitcoin price got dumped from $7911 to $4970 in March 2020.
Considering that it was about to experience a halving in two months after a major decline in its value, it was the perfect time to invest in Bitcoin. And that is exactly what I did in March.
So I bought $20 worth of Bitcoin at $7411 in the last week of March of 2020 and on January 8th, 2021, Bitcoin achieved its all-time highest value of $40,797 making my investment of $20 equivalent to $101.99 in less than a year. This means that I made a profit of four times just by being at the right place at the right time.
And most of you would have heard of the news about Bitcoin’s all-time high this year and you might think that this is just it and it would never go any higher. And don’t get me wrong you might be absolutely right but JPMorgan CEO, Jamie Dimon, had a similar opinion in the past. He called it a “fraud” previously but this year he made a bold statement in a note about the long term prospect of Bitcoin claiming that “the red-hot cryptocurrency could rally as high as $146,000 as it competes with gold as an “alternative” currency”.
Such a bold statement was not expected from Jamie Dimon but if the CEO of the largest bank in the U.S. in terms of assets comes up with such a strong statement after calling it a fraud means that he would have researched a lot about it and would have understood the core idea of this technology to see its prospects in the long run.
Along with Jamie Dimon, Elon Musk had also tweeted recently in which he showed interest to invest some of Tesla’s revenue in Bitcoin to overcome dollars inflation. At the same time, a growing number of institutional investors are piling into Bitcoin. This means that the lower the amount of Bitcoin available in the market for people to buy, the higher the cost of bitcoin will be.
And if the same trend continued, it is more than likely that the prices of Bitcoin will be skyrocketing sooner than the last time. This means that it might sound daunting to invest in bitcoin at around $32,000 price right now as of the time I am writing this story but I would suggest you all to take a small risk and invest 1% of your stock portfolio or net worth into Bitcoin as it is a volatile market and it might go back to zero at any time, but it has never gone back to zero since 2009 when this technology was launched.
In fact, every person who had invested in Bitcoin at any point in time is the last year or before is in profit currently.
So the chances of bitcoin getting its value dumped are very slim as of now but don’t get me wrong it is very possible and that is why I urge you guys to do your due diligence before investing in this technology as we are all very new to it but it surely has a very bright future according to my perspective.
