Explore the fascinating journey of Bitcoin from its beginnings to its last levels and learn about its impressive historical returns. Whether you're a seasoned investor or new to cryptocurrency, this article provides insight into Bitcoin's milestones and how it stacks up against other asset classes.
From its humble beginnings in 2008 until today, Bitcoin's history has been relatively short but eventful. The original protocol for this popular digital currency was created in 2008 by Satoshi Nakamotowhich is believed to be an alias for an unknown developer or group of developers.
Nakamoto launched the Bitcoin network just a year later and began mining the currency – around 1 million bitcoins were mined in the first few years.
The creator(s) of this first-of-its-kind asset developed the cryptocurrency in response to The Great Recession of 2007-2009fueled by mistrust of the traditional banking system and concerns about its stability.
Given Bitcoin's recent values, it's hard to believe that the coin first started trading on exchanges in 2010 at under $0.10. Since then, it has experienced astronomical growth and some pretty wild price swings.
At its most recent high, a bitcoin was worth over $64,000 – a far cry from trading for pennies in its early days.
If you are thinking about investing in Bitcoin or you've held this cryptocurrency for several years, it's fun to look back on the history of this innovative asset. Read on for insights on Bitcoin's highlights, historical returns, and how its returns compare to those of other assets.
Bitcoin Performance Highlights
Since its inception, Bitcoin has experienced several milestones. Here's a look back at some of the most significant moments in this cryptocurrency's short history:
- In June 2011, Bitcoin saw its first significant price increase, climbing to a value of $29.60 (from just $0.30 in January) before falling again later that year.
- The second half of 2013 saw another big rally – from $68 on July 4 to $1,237 on December 3, before falling again.
- One of Bitcoin's most significant surges occurred in 2017, with its value rising from around $1,000 at the start of the year to $19,345 by mid-December.
- Bitcoin's hype cooled in 2018, resulting in significant declines – its lowest value was around $3,232 in December of that year.
- In 2019, Bitcoin saw another surge, reaching $13,813 on June 26 before falling.
- Bitcoin fell by over 75% in 2022
- Bitcoin continues to hover around $30k in 2023
Bitcoin Total Return (10 years, 5 years, 3 years, 1 year)
While Bitcoin is not exempt from the volatility that cryptocurrencies often experience, it has delivered some impressive returns over the years. Here's a look at Bitcoin's annual returns from 2010 to 2022:
| Bitcoin 10 Year Return Chart | |
| YEAR | Return (%) |
| 2011 | 1,473 |
| 2012 | 186 |
| 2013 | 5507 |
| 2014 | -58 |
| 2015 | 35 |
| 2016 | 125 |
| 2017 | 1,331 |
| 2018 | -73 |
| 2019 | 95 |
| 2020 | 301 |
| 2021 | 90 |
| 2022 | -81.02 |
| 2023 |
And here's a look at the monthly returns, if you feel like taking a deeper dive:
| Monthly Bitcoin Returns | ||||||||||||
| YEAR | January | February | March. | APRIL | Can | JUNE | July | August | September. | October | November | December |
| 2010 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 210.99% | N/A | 44.09% |
| 2011 | 73.33% | 65.38% | -8.77% | 346.09% | 149.71% | 84.21% | -17.08% | -38.58% | -37.32% | -36.77% | -8.62% | 58.92% |
| 2012 | 16.10% | -11.31% | N/A | N/A | 4.65% | 29.15% | 39.76% | 8.66% | 22.05% | -9.68% | 12.23% | 7.48% |
| 2013 | 51.07% | 63.55% | 178.70% | 49.66% | -7.48% | -24.31% | 8.92% | 32.76% | 0.64% | 48.82% | 470.94% | -33.15% |
| 2014 | 16.49% | -38.87% | -22.53% | 0.22% | 10.90% | 1.15% | -7.18% | -18.28% | -19.43% | -12.96% | 10.97 | -15.12% |
| 2015 | -31.34% | 16.27% | -3.90% | -3.43% | -2.52% | 14.91% | 7.42% | -19.12% | 2.82% | 31.92% | 21.44% | 13.75% |
| 2016 | -13.98% | 17.95% | -4.71% | 7.91% | 17.92% | 26.68% | -7.19% | -7.72% | 5.97% | 14.89% | 6.27% | 29.75% |
| 2017 | 0.22% | 23.18% | -9.26% | 25.28% | 70.38% | 7.70% | 16.23% | 64.23% | -7.91% | 47.94% | 54.18% | 39.25% |
| 2018 | -25.88% | 0.67% | -32.86% | 33.25% | -18.85% | -14.71% | 20.79% | -9% | -5.67% | -4.06% | -36.54% | -8.18% |
| 2019 | -7.34% | 11.04% | 7.49% | 29.70% | 60.85% | 36.41% | -6.81% | -4.84% | -13.65% | 10.48% | -17.55% | -4.64% |
| 2020 | 29.91% | -8.62% | -24.94% | 34.56% | 9.57% | -3.38% | 24.06% | 2.74% | -7.46% | 28.04% | 42.77% | 46.97% |
| 2021 | 14.37% | 36.41% | 30.11% | -1.78% | -35.38% | -6.09% | 18.63% | 13.42% | -7.02% | 39.90% | -7.22% | -18.75% |
| 2022 | -16.70% | 12.18% | 5.41% | -17.3% | -15.56% | -37.32% | 16.95% | -13.99% | -3.1% | 5.53% | -16.26% | -0.86% |
| 2023 | 39.83% | 0.02% | 23.1% | 2.73% | -6.96% | 11.97% | -4.07% | -11.29% | 3.91% | 28.52% | 8.81% | |
| 2024 |
While Bitcoin has experienced some wild monthly price swings and some years where its value has fallen, you can see that its declines have been eclipsed by some incredible gains. Now let's explore how the value of Bitcoin has changed over 10, 5, 3 and 1 years.
Bitcoin's 10-Year Return
Let's say you bought a bitcoin on August 3, 2013, for $1,106.75, its price at the time. If you held that one bitcoin until August 3, 2023, it would be worth $29,310.44 and your total ROI over the 10 years would be 2,546.8%.
Bitcoin's 5-Year Return
We'll also assume you bought a Bitcoin for this example. A single bitcoin was valued at $965.31 on August 3, 2018, and its value grew to $29,310.44 by August 2023. Using our calculation above, your total ROI over those five years would be 294.1%.
Bitcoin's 3-Year Return
A single bitcoin was valued at $11,246.20 in August 2020 and its value increased to $29,310.44 at the end of 2021. Your total ROI for those three years would be 160.6%.
1 Year Bitcoin Return
If you bought a single bitcoin in August 2022, you would have paid about $22,626.83. In one year, that value would have grown to $29,310.44. Your total returns for that year would be 29.54%.
Bitcoin multi-year returns compared
| Initial value | Final value | ROI (%) | |
| 15 years (2008-2023) | $0.000764 | $29,310.44 | 3,839,387,524,500% |
| 10 years (2013-2023) | $1106.75 | $29,310.44 | 2,546.8% |
| 5 years (2018-2023) | $7,438.67 | $29,310.44 | 294.1% |
| 3 years (2020-2023) | $11,246.20 | $29,310.44 | 160.6% |
| 1 year (2022-2023) | $22,626.83 | $29,310.44 | 29.54% |
How much would you have if you invested $1000 in Bitcoin 10, 5, 3 or 1 year ago
Instead of buying a bitcoin, let's say you decided invest $1000 in Bitcoin. Here's a look at how this $1,000 investment would have performed if you bought and held your Bitcoin for 10, 5, 3, and 1 years.
| Initial price | Number of Bitcoins purchased | Final value | |
| 10 years (2013-2023) | $13.30 | 75,19 | $2,203,358.14 |
| 5 years (2018-2023) | 13 880 dollars | 0.072 | $2,110.35 |
| 3 years (2020-2023) | 7200 dollars | 0.139 | $4073.15 |
| 1 year (2022-2023) | $16,605.10 | 0.0602 | $1,765.11 |
While the earliest Bitcoin investors would have benefited more from buying and holding their Bitcoin, those who invested more recently also did well.
How does Bitcoin compare to other asset classes?
If you're curious about how Bitcoin returns compare to those of other asset classes, here's how its annual and total returns compare to gold, real estate and the S&P 500.
(Spoiler alert: Bitcoin outperformed all three assets by a wide margin.)
Bitcoin vs Gold
If you compare the returns of Bitcoin to the returns of gold, you will notice a huge difference. Bitcoin has an average annual return of 1,576% and a total return of 18,912% from 2010 to 2022, while Gold Shares SPDR it had an average annual return of just 5.14% and a total return of 61.67% over the same period.
| YEAR | Bitcoin Return (%) |
SPDR Gold Stock Return (GLD) (%) |
| 2005 | – | 17.76 |
| 2006 | – | 22.55 |
| 2007 | – | 30.45 |
| 2008 | – | 4.92 |
| 2009 | – | 24.03 |
| 2010 | 9900 | 29.27 |
| 2011 | 1,473 | 9.57 |
| 2012 | 186 | 6.6 |
| 2013 | 5507 | -28.33 |
| 2014 | -58 | -2.19 |
| 2015 | 35 | -10.67 |
| 2016 | 125 | 8.03 |
| 2017 | 1,331 | 12.81 |
| 2018 | -73 | -1.94 |
| 2019 | 95 | 17.86 |
| 2020 | 301 | 24.81 |
| 2021 | 90 | -4.15 |
| 2022 | -81.02 | -0.77 |
| 2023 | 156.15 | 12.69 |
Bitcoin vs Real Estate
Let's see if real estate did better compared to Bitcoin. The cryptocurrency delivered an average annual return of 1,576% and a total return of 18,912% from 2010 to 2021, while Vanguard Real Estate ETF had an average annual return of 13.49% and a total return of 161.91% over the same period.
So real estate saw slightly higher returns than gold, but still didn't come close to Bitcoin's returns.
| YEAR | Bitcoin Return (%) |
Vanguard Real Estate ETF Return (%) |
| 2005 | – | 12 |
| 2006 | – | 35.2 |
| 2007 | – | -16.38 |
| 2008 | – | -36.98 |
| 2009 | – | 29.76 |
| 2010 | 9900 | 28.44 |
| 2011 | 1,473 | 8.62 |
| 2012 | 186 | 17.67 |
| 2013 | 5507 | 2.42 |
| 2014 | -58 | 30.29 |
| 2015 | 35 | 2.37 |
| 2016 | 125 | 8.53 |
| 2017 | 1,331 | 4.95 |
| 2018 | -73 | -5.95 |
| 2019 | 95 | 28.91 |
| 2020 | 301 | -4.72 |
| 2021 | 90 | 40.38 |
| 2022 | -81.02 | -26.21 |
| 2023 | 156.15 | 11.79% |
Bitcoin vs S&P 500 (Stock Market)
The S&P 500 didn't fare much better head-to-head with Bitcoin. From 2011 to 2023, Vanguard S&P 500 ETF yielded an average annual return of 15.74% and a total return of 173.14%. While these numbers aren't too shabby, Bitcoin's average annual return for the same period was 819% and its total return was 9,012%.
| YEAR | Bitcoin Return (%) |
VOO, Vanguard SP500 ETF Return (%) |
| 2011 | 1,473 | 2.09 |
| 2012 | 186 | 15.98 |
| 2013 | 5507 | 32.33 |
| 2014 | -58 | 13.63 |
| 2015 | 35 | 1.35 |
| 2016 | 125 | 11.93 |
| 2017 | 1,331 | 21.78 |
| 2018 | -73 | -4.42 |
| 2019 | 95 | 31.46 |
| 2020 | 301 | 18.35 |
| 2021 | 90 | 28.66 |
| 2022 | -81.02 | -18.15 |
| 2023 | 156.15 | 26.33% |
How does Bitcoin compare to the best performing stocks?
We've analyzed how Bitcoin compares to gold, real estate and the stock market, but how does it stack up against some of the best performing stocks? Here's how this popular cryptocurrency stacks up against major companies like Amazon, Apple, Berkshire Hathaway, JP Morgan, Microsoft, Visa and Walmart.
We looked at average annual and total returns for each asset. This data assumes you bought the asset in 2010 and held it until 2023.
| asset | Average annual return (%) | Total return (%) |
| Bitcoin | 1.576% | 18.912% |
| Amazon | 35.54% | 426.48% |
| Apple | 33.22% | 398.61% |
| Berkshire Hathaway | 14.31% | 171.76% |
| JP Morgan | 13.53% | 162.40% |
| Microsoft | 23.92% | 287.04% |
| Visa | 23.10% | 277.37% |
| Walmart | 10.08% | 120.94% |
Bottom Line – Historical Bitcoin Returns
While some investors may be skeptical about the cryptocurrency, citing concerns over market volatility and a high risk of loss, Bitcoin's performance over time paints a rosy picture. With its longevity and astronomically high returns, Bitcoin has been worth the risk for many investors – especially early adopters.
Of course, historical performance does not guarantee future returns. So if you are thinking investing in cryptocurrencyinvest only what you can afford to lose.