In the fast-moving universe of practical currencies, it seems there is always at slightest one banking that’s creation vital moves. Bitcoin and ethereum both saw their values skyrocket in 2017, mostly on the strength of newfound financier seductiveness in the cryptocurrency space, media hype, and the initial silver charity (ICO) craze. However, the cryptocurrency with the largest commission boost in cost was sputter (XRP). (See also: How Do we Buy Ripple (XRP) Cryptocurrency?)
Though founded in 2012, sputter hovered at just a fragment of one cent per token going into 2017. As of this writing, it is value more than $3 per token. How much would $100 invested in XRP in early Jan 2017 be value today?
From $0.006 to $3.02
According to data from CoinMarketCap.com, the cost of one XRP token on Jan 2, 2017 was $0.006396. Investing $100 in XRP at that time would have enabled you to squeeze 15,634.77 XRP tokens. (Note: That’s assuming you didn’t have to compensate a transaction fee. Given that different exchanges need different fees, it’s easier for our functions to discharge the price consideration. In actuality, though, your $100 would have yielded rather fewer tokens than indicated above.)
As of this writing, according to CoinMarketCap.com, one XRP token is valued at $3.02. Given your 15,634.77 XRP purchased one year ago, your sputter land would now be value a whopping $46,904.32. This is including the $100 you spent on your initial purchase. Needless to say, your initial investment would have yielded tremendous results.
Effects of a Bubble?
While some investors might look to the results above as a pointer of easy income to be made in the cryptocurrency market, many others see this as serve acknowledgment that digital currencies are in a burble (or maybe mixed bubbles).
This form of risk/reward ratio is radically unheard of, and investors should not assume that it can be repetitious in the future. A somewhat more diversified investment (say, $100 in each of the tip 10 cryptocurrencies) over a identical duration would have yielded earnings of more than $64,000, according to a news by Forbes. Still, this might be more the product of propitious timing than anything else. (See also: Ripple Execs Are Now Billionaires Thanks to XRP’s Success.)
Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is rarely unsure and speculative, and this essay is not a recommendation by Investopedia or the author to invest in cryptocurrencies or other ICOs. Since each individual’s conditions is unique, a competent veteran should always be consulted before creation any financial decisions. Investopedia creates no representations or warranties as to the correctness or timeliness of the information contained herein. As of the date this essay was written, the author owns cryptocurrency.