Cryptocurrency has come a long way in the past decade. When Bitcoin launched in 2009, few people took it seriously or thought it would become a major asset class. Yet here we are, 10 years later, and cryptocurrency has produced some of the best returns of any asset over the last decade.
The total market capitalization of cryptocurrencies started the decade at essentially zero and now sits at over $200 billion. The price of one Bitcoin has gone from less than a penny to over $10,000. While plenty of cryptocurrencies have come and gone, the sector as a whole has produced life-changing gains for early investors.
Of course, the path has been volatile. Cryptocurrency is a highly speculative market and prices can swing wildly up and down. There have been several major booms and busts, like the bubble of 2017 that popped in early 2018. However, each bubble is followed by a recovery to new highs. For long-term holders that can stomach the volatility, the returns have been unmatched.
The question now is what the next decade may hold for cryptocurrency. There are reasons to be optimistic about continued growth and mainstream adoption. Cryptocurrency is still a very niche market, but awareness and interest are increasing steadily. Major companies like Facebook and JPMorgan are launching their own cryptocurrencies. However, there are also risks, like stiff regulations that could hamper growth.
Overall, cryptocurrency remains a highly speculative investment. However, if the last decade has shown us anything, it’s that the potential upside is enormous. For investors interested in the best-performing assets, cryptocurrency deserves serious consideration. Of course, only invest money that you can afford to lose given the volatility. But with the right mindset and time horizon, cryptocurrency could again prove to be the top-performing asset class over the next 10 years. The 2020s will likely be another defining decade for the emerging crypto economy.
