Bitcoin vs Apple: A Comparison of Early Investments and Returns
1. Introduction
In the world of investing, early investors are often seen as lucky individuals. This holds true for both early Bitcoin (BTC) investors and early investors in tech giant Apple. While both assets have seen significant growth over the years, this article aims to compare their performance to determine the ultimate winner.
2. Bitcoin’s Early Beginnings
Bitcoin is a relatively new asset, having been introduced on January 3, 2009. In contrast, Apple has been listed on the NASDAQ since December 12, 1980. It’s important to note the vast difference in longevity between the two assets.
3. Apple’s Dividend Strategy
One important aspect to consider when comparing the performance of Bitcoin and Apple is Apple’s dividend payouts. As part of its broader financial strategy, Apple began rewarding its shareholders with dividends starting in 2012. This additional income stream may impact the overall return on investment for Apple investors.
4. Hypothetical Early Investments
Let’s explore a hypothetical scenario where an individual made early investments in both Bitcoin and Apple. While it is extremely unlikely for someone to have invested in both assets at their inception, this comparison provides valuable insights into their potential returns.
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During its IPO, Apple sold 46 million shares at $22 per share. If an individual had enough foresight to invest $1,100 and purchase 50 shares, they would now own 11,200 shares. Considering the current price of Apple stock at $189.40 per share, this investment would be worth slightly above $2.1 million.
In comparison, the first Bitcoin purchase with dollars occurred in 2009. Users on the BitcoinTalk forum traded 5,050 BTC for $5.02 via PayPal, setting the initial exchange rate at $0.00099 per Bitcoin. If someone had invested $1,100 in Bitcoin at that time, their investment would now be worth an astronomical value of nearly $29 billion.
5. Rendition of Returns
Looking solely at the return on investment, Bitcoin emerges as the winner. However, it’s important to acknowledge the unpredictability of the future and the associated risks of investing in a single asset. Diversifying one’s portfolio beyond just crypto can be a wise decision, and stocks like Apple may offer interesting opportunities for such diversification.
eToro: Offering a Wide Range of Investment Products
eToro, a global trading platform, offers investors the opportunity to invest in a diverse range of assets. In addition to digital assets such as Bitcoin, eToro allows investments in stocks, commodities, forex, and indices. By diversifying one’s portfolio, investors can gain exposure to multiple asset classes, including both cryptocurrencies and traditional stocks like Apple.
Don’t limit yourself to choosing between Bitcoin and Apple alone. Sign up with eToro now to explore a wide range of investment options and build a diversified portfolio that suits your financial goals.
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Tags: AAPL, Apple, Bitcoin, BTC, eToro