Investors eyeing the cryptocurrency market may find themselves daunted by the astronomical price of Bitcoin, currently hovering around $110,000. However, despite its steep entry point, experts argue that Bitcoin remains a prime investment, especially for those looking to start with smaller amounts, such as $100.
Proponents highlight Bitcoin’s remarkable potential for upside. Leading industry figures, including Brian Armstrong, CEO of Coinbase Global, have suggested that Bitcoin could reach $1 million within five years, while Cathie Wood of Ark Invest envisions it might even hit $3.8 million by 2030. This projection indicates a potential tenfold increase, which would require an annual growth rate of 56%—a feat that even the top-performing tech stocks have struggled to achieve over extended periods.
Bitcoin’s historical performance further bolsters its investment case. It has been the world’s best-performing asset in eight of the last ten years, with a staggering annual gain of 157% in 2023, outpacing the next closest asset, the S&P 500, which yielded just 26%. Nevertheless, prospective investors must be aware of the risks; holding Bitcoin requires a long-term commitment. During its downturns in 2018 and 2022, Bitcoin sustained losses of 74% and 64%, respectively. Those who held steadfast through these periods were ultimately rewarded, with gains of 157% in 2023 and 125% in 2024.
As economic uncertainties loom, Bitcoin is increasingly viewed as a hedge against instability. Often dubbed “digital gold,” it is becoming an attractive asset amid macroeconomic turmoil, including fears surrounding the U.S. dollar’s debasement due to government shutdowns and rising tariffs. This trend indicates a growing preference for purportedly sounder forms of money.
For those ready to invest $100, buying fractional Bitcoin is a viable option, allowing investors to hold a portion of a Bitcoin—approximately 0.0009 for that amount. However, some may find purchasing mere fractions dissatisfying. An alternative is investing through spot Bitcoin exchange-traded funds (ETFs), which offer direct exposure to Bitcoin in a more accessible format. Several top Bitcoin ETFs, such as the iShares Bitcoin Trust and the Fidelity Wise Origin Bitcoin Fund, trade under $100, making them a practical entry point.
Despite recent relative stability in Bitcoin’s volatility, potential investors should remain cautious. The cryptocurrency market is known for its inherent risks, necessitating a long-term buy-and-hold strategy to capitalize on Bitcoin’s potential upside.
