Almost everyone knows by now that Bitcoin (CRYPTO: BTC) has been one of the best investments of all time. Investing just $20 into the cryptocurrency when it launched in 2009 would have turned you into a billionaire.
But what if you purchased just a single bitcoin the year it launched? How much would it be worth now, and might you actually have more bitcoins today than when you started? The answer might surprise you.
Investing in bitcoin is not like buying shares of a company. For example, public companies can issue more stock or even buy back their own shares at any time. Bitcoin, meanwhile, has a fairly defined supply trajectory, with its supply growth halving according to regular intervals. Around the year 2140, no new bitcoins will be mined, maxing out the total supply at 21 million bitcoins.
Another notable difference is that public companies can conduct stock splits, changing how many shares any one shareholder has. No such thing exists for bitcoin. So if you purchased a single bitcoin in 2007, you still own the same number of bitcoins today: One.
Just because the number of bitcoins you would have owned since 2007 wouldn't have changed doesn't mean the value of your investment remains unchanged. In 2009, bitcoins were reportedly trading hands at just $0.00099 apiece. Today, a single bitcoin is worth nearly $75,000, resulting in a profit of essentially $75,000. Not bad for investing less than a penny.
It's important to note that other cryptocurrencies -- Ethereum being a prime example -- allow you to stake your holdings, earning more in exchange. It's nearly akin to a dividend reinvestment program. For now, Bitcoin does not offer a staking program. Although that could change once mining rewards hit zero, eliminating the incentive for miners to support the decentralized network. In any case, the only way to acquire more bitcoins today is by purchasing more bitcoins. Remaining patient simply gives you more upside potential, not more bitcoins.
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Ryan Vanzo has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.