It is generally a good idea to follow Warren Buffet’s investment advice. There are a few examples of this that are as stark as the potential upside for any investor who chose to buy Apple (NASDAQ: AAPL) stock in 2016 – the same year as the Oracle of Omaha.
Still, every rule has an exception, and not even the legendary Warren Buffett is always right. Indeed, the famous investor opined in March 2014 that traders should avoid Bitcoin (BTC).
At the time, the Oracle of Omaha stated that though the technology behind BTC is promising, it is unlikely to gain any traction as a currency. What is interesting is that the billionaire was partially correct since, though Bitcoin did gain significant traction as an asset, it is still far from a competitor to the likes of U.S. dollars (USD) or the pound sterling (GBP).
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Still, due to its popularity as an investment and its perceived status as digital gold, buying even $1,000 worth of Bitcoin at the time Buffett warned to stay away from the cryptocurrency would have been wildly profitable.
Indeed, in March 2014, BTC was trading at approximately $600, while Bitcoin price today stands at $60,282.
This means that a $1,000 investment in the cryptocurrency ten years ago would now be worth almost exactly $100,000 – some 9,900% more.
$1,000 invested in BTC in 2014 could be worth $500,000 by the end of 2024
What makes the potential investment more interesting is that, despite it leading to a 9,900% return rate, early July 2024 is shaping up to be one of the worst times in the year to measure Bitcoin profits.
In recent weeks,the cryptocurrency has experienced a significant downturn, falling over 10% in the last 30 days. Indeed, had the BTC bought in March 2014 been sold in March 2024, the hypothetical investor would have turned $1,000 into more than $121,000.
Still, there remains a strong possibility of even greater profits in the future, given that multiple prominent institutions and experts predict that Bitcoin is far from this cycle’s highs.
Several months ago, Robert Kiyosaki – the author of the best-selling personal finance book ‘Rich Dad Poor Dad’ – predicted BTC would rise to $300,000 before the year is over and the banking giant Standard Chartered held on to its $150,000 BTC price target for 2024 as recently as late May.
Should the former forecast come true, the 2014 BTC investment would rise to $500,000 by late December, and even the latter, more modest target would lead to $249,000 in profits.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
