Ethereum is a decentralized blockchain. It supports thousands of crypto coins, NFTs, including ETH coins that are built on the ETH blockchain. It is the second-largest cryptocurrency after Bitcoin, with a marketcap of $358,663,210,487. Today ETH crossed 3k USD for the first time ever.
ETH Worth 5 Years Ago
According to historical data from Coinmarketcap, five years ago (May 3, 2016), the price of ETH was $7.10 per coin. If you bought the currency for $10, you would have 1.4 ETH.
ETH Worth Today
The price of Ethereum as of May 3rd, 2021, is $3,100 per coin. This is 436 times more than five years ago-an increase of about 43,600%.
If you had bought $10 worth of ETH 5 years ago, here’s how much you would have today.
If you bought $10 worth of Ethereum five years ago, today, you would have about $4360 ($10 x 436). It’s not exactly retirement money, but not bad for a $10 buy-in.
For those who then saw the potential in cryptocurrency and really wanted to purchase ETH early, they could probably have made much more.
Five years ago, $100 worth of Ethereum, if left untouched, would be around $43,600 today.
Five years ago, $1000 worth of Ethereum, if left untouched, would be around $436,000 today, enough to sustain an annual living cost of $36000 for the next 12 years.
ETH As An Investment
Like many other cryptocurrencies, the value of Ethereum has soared this year — today’s value is about double what it was in January of this year.
So does that make it a good investment?
That depends on whether you think it has underlying value. It’s never a good investment if you plan to risk some money in the hope you’ll get rich quickly. No investment is guaranteed to grow, let alone by 10x or 100x.
Crypto has shown some of the most surprising and headline-worthy returns since the earliest tech companies — but the markets are volatile. Those jumps are matched by significant dips in value, and we don’t have enough historical data to know whether the assets will stabilize and grow in the long term.
The idea of cryptocurrency is just over a decade old, and Ethereum has been around for less than six years. But if you were one of the investors who woke up to crypto in early 2020, your portfolio probably looks really good today. Whether you should sell and enjoy the spoils or hold on and hope for continued growth is completely up to you.
Crypto investing is best suited for money you’re willing and able to lose — because no one knows what the future holds in the short or long term.
Originally published at https://thecryptobasic.com on May 3, 2021.