Cryptocurrency Boom: Turning $100 into $500, $1,263 and $12,350 Since Pandemic

John Smith

The stock market has rebounded remarkably since its pandemic crash in March 2020. Major U.S. stock indices like the S&P 500, Nasdaq, and Dow Jones Industrial Average have posted strong double-digit returns over that timeframe. However, the gains of several major cryptocurrencies have vastly outpaced even the hot stock market.

For investors with the foresight and risk tolerance to invest $100 into Bitcoin, Ethereum, and Dogecoin near the stock market bottom in March 2020, the returns have been truly staggering. Let’s take a look at just how wildly lucrative these cryptocurrency investments have been.

Bitcoin: From $100 to Over $500

Bitcoin, the original and most widely-known cryptocurrency, has been on a rollercoaster ride since March 2020. After cratering to around $5,000 per coin during the stock market selloff, Bitcoin prices recovered to the $10,000 level within a few months.

In late 2020, Bitcoin began its massive bull run, reaching prices above $60,000 by April 2021. Despite some turbulence that dropped it back toward $30,000 on occasions, Bitcoin has held most of its gains.

An investor who put $100 into Bitcoin in March 2020 would have been able to acquire around 0.02 coins at the time. With Bitcoin recently trading above $25,000 once again, those same 0.02 coins would now be worth around $508.

That’s a return of over 400% in just two and a half years! Of course, returns would be even higher if the investor bought nearer to Bitcoin’s bottom under $4,000.

While past performance never guarantees future returns, Bitcoin has demonstrated its long-term potential for sizable gains. And with increasing adoption and more widespread availability of cryptocurrency services from major financial institutions, Bitcoin seems poised for mainstream acceptance as a portfolio diversifier and alternative asset. Although another crash is very possible, the long-term outlook remains bullish.

Ethereum: Massive Gains of Over 1,100%

Ethereum has been an even more impressive winner than Bitcoin since early 2020. The second-largest cryptocurrency by market capitalization after Bitcoin, Ethereum powers a decentralized computing network that enables smart contracts and decentralized applications.

The versatile Ethereum platform has a robust development community building decentralized finance (DeFi) apps, games, NFTs, and more. Increased usage of the network has boosted the value of the underlying ETH token dramatically.

An investor who put $100 into Ethereum in March 2020 would have acquired around 22 ETH tokens at the time. With Ethereum recently changing hands near $1,500, those same 22 tokens are now worth approximately $1,263 — a stellar return of over 1,100%!

Of course, risks remain of prices declining from these lofty levels, especially should the crypto bull market end. However, increased utility for Ethereum in various cryptocurrency ecosystems continues to support a bullish long-term thesis.

Dogecoin: The Joke Cryptocurrency Delivering Epic Returns

Perhaps the most shocking cryptocurrency success story since early 2020 comes from the meme-inspired Dogecoin. Created as a joke referencing the popular Shiba Inu dog meme, Dogecoin gained a cult following on social media. What started as a silly experiment has morphed into one of the largest cryptocurrencies.

Buoyed by high-profile supporters like Elon Musk and Mark Cuban, Dogecoin went on an unthinkable run in 2021. The price surged from under $0.005 in March 2020 to an all-time high over $0.70 in May 2021. Dogecoin has since pulled back significantly from those levels. However, it remains up substantially from its pandemic lows.

An investor who allocated $100 to Dogecoin in March 2020 could have purchased around 190,000 DOGE coins near the bottom. With Dogecoin recently trading hands around $0.065, those 190,000 coins would now be valued at a staggering $12,350 — a massive return of over 12,200%!

Of course, Dogecoin comes with even more risk and volatility compared to Bitcoin and Ethereum. The bubble could burst completely at any time, especially if Elon Musk tweets something negative. Still, DOGE has minted some lucky investors with epic gains.

Key Takeaways: Consider Cryptocurrencies but Be Cautious

The potentially life-changing returns from investing in cryptocurrencies like Bitcoin, Ethereum, and Dogecoin since March 2020 are clear. However, chasing gains is risky, especially after such an extended run-up.

Crypto prices could crash at any moment, just as quickly as they rose to new heights. Cryptocurrencies remain highly speculative assets with extreme volatility.

For investors interested in exploring crytocurrencies, the best approach is to allocate only a very small portion of your portfolio, say 1-5%, to cryptos. Focus on established leaders like Bitcoin and Ethereum rather than flash-in-the-pan meme coins.

Be prepared for further volatility and keep a long-term perspective. Cryptocurrencies offer huge potential upside but carry major risks that may result in losing your entire investment. Proceed carefully and avoid “betting the farm” on speculative crypto assets.

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John Smith is a veteran stock trader with over 10 years of experience in the financial markets. He is a widely followed market commentator known for his astute analysis and accurate predictions. John has authored multiple bestselling books explaining complex market concepts in simple terms for novice investors looking to grow their wealth through strategic trading and long-term investments.
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