The year 2021 may be remembered for a variety of events, including the year when cryptocurrencies gained popularity as a subject and form of investment. In Nigeria alone, cryptocurrency grew by over 1200% with an estimated 35% of the population having traded crypto.
Many cryptocurrencies had increased in value in 2021 as they were discussed more and more, including three of the most well-known names.
The performance of Bitcoin, Dogecoin, and Ethereum from the beginning of 2021 until the present is shown here.
Throughout 2021, Bitcoin increased and was added to the balance sheets of Tesla Block Inc. and other publicly traded firms.
One of the most popular cryptocurrencies in 2021, Dogecoin experienced a value explosion as a result of well-known figures like Elon Musk and Mark Cuban openly endorsing the “meme crypto.”
Due to the growing popularity of non-fungible tokens(NFTs), many of which make use of the Ethereum blockchain, Ethereum has increased in both usage and popularity.
A $1,000 investment in each of the three most well-known cryptocurrencies—BTC, DOGE, and ETH—would have been a successful trade in 2021. Here’s how each of the three listed cryptocurrencies would have performed in a hypothetical investment at the end of 2021.
On January 1, 2021, Bitcoin was marketed at a high price of $29,600.62. On January 1st, a $1,000 investment in bitcoin would have been able to purchase 0.0338 BTC. Bitcoin’s price at the end of 2021 was $46,306.45. The $1,000 investment was worth $1,565.16 at the end of 2021. The $1,000 in Bitcoin would be worth $670.74 at the time of writing.
Dogecoin traded at a high of $0.005685 on Jan. 1, 2021. On January 1st, a $1,000 interest in Dogecoin would have been able to buy 175,901 DOGE. Dogecoin’s price at the end of 2021 was $0.1705. The $1,000 investment was valued at $29,991.12 at the end of 2021. The $1,000 in Dogecoin would be valued at $10,942.86 at the period of writing.
On January 1, 2021, Ethereum attained a high of $749.20 in trading. On January 1st, a $1,000 investment in Ethereum would have been able to acquire 1.3348 ETH. The price of Ethereum in 2021 was $3,682.63. The $1,000 investment was valued at $4,915.57 at the end of 2021. The value of $1,000 in Ethereum at the moment of writing is $2,136.41.
The value of the three coins at the end of 2021, if $1,000 had been invested in each, would have been $36,471.85.
The hypothetical investments in the three well-known cryptocurrencies would be worth about $13k through September 5, 2022. Despite being much lower than the year-end figures for 2021, this is still an increase of 1,268% since the year’s beginning. Bitcoin’s value has decreased by almost 33% since the beginning of 2021, while Ethereum and Dogecoin have increased by more than 100%. Does this mean altcoins are winning? And do you believe that Ethereum is a better investment than Bitcoin?
In conclusion, we can see that cryptocurrency investment is still a big win, so you should be investing as well. Check out this post to see why you should be a cryptocurrency investor.