The Power of $10 - High risk, High reward.
Lets wind the clock back abit, to when Bitcoin was worth 1 cent.
Lets say we bought $10 worth of BTC at that price.
We now have 1000 BTC, pretty neat little package.
This year, that same $10 investment would have reached $5,000,000!
This is all pretty common knowledge for those in the crypto game, but how viable is $10 in today’s crypto market?
According to Coinmarketcap.com, there are currently 1128 altcoins in existence (As of September 27th, 2017). If we tried spreading $10 over all over them, that would cost $11280.. what are the chances of breaking even?
Well, 182 (16%) of all altcoins already exceed $1, so that eliminates the explosive growth provided in the infancy of the coin. There still is growth to be had, but just one of those coins would have to reach $112.8 just to break even. Not impossible, but realistically more of a gamble, also considering that all 16% is not $1 exactly.
The remaining 946 (84%) of existing alt coins are below $1. Lets break that down abit more.
Of that 946, 484 (42%) are coins that fall between $0.01 — $0.99.
Of those 484, 250 (22%) are coins that fall between $0.01 — $0.10.
So if we spread $10 into all these 484, we would see a total investment of $4840.
We would roughly need 10–15 coins out of 250 (from the $0.10 — $0.01 bracket) to reach $1 to achieve ROI (Return of investment) of original $11280. And that’s only taking into account that bracket. Any other gains from each bracket would only aid towards profit or ROI.
Not to shabby, but there’s still more coins left below $0.01…
We are now left in a pretty risky territory.
So, 462 coins below $1 remain in the $0 — $0.0099 bracket. When spreading out our $10 here, the total is $4620.
If just two coins at $0.004 makes it to $1, we break even in this bracket.
If just four coins at $0.007 makes it to $1, we break even in this bracket.
If both these instances happen, then we are only about $500 off breaking even from total investment over whole market.
By now, you most definitely have a few limitations you want to raise. So allow me to present some for you.
Many coins out there are currently ghosts from an unsuccessful startup, they exist on the market but no longer provide any growth. These need to be accounted for in all brackets.
I haven’t addressed any fee’s or exchange rates that exist when withdrawing profit, let alone taxes that would need to be paid.
I am assuming all exchanges remain open and no problems are encountered when buying/selling any of these.
I am assuming all these coins can still be purchased somewhere, some might not be available anymore.
God-forbid, the Cryptocurrency market disappears… (I had to add it).
The biggest limitation behind all of these projections is the time frame. The volatility of the Cryptocurrency market is noticeably unique, and the growth rate of coins cannot be compared so easily to others. One coin might reach $1 from $0.34 in a month, whilst another will take years.
There are more that can be added, however, I encourage you to comment more below. When dealing with any sort of investment, limitations should ALWAYS be addressed. Its all fun and games playing with the calculator, but when shit hits the fan, you cant just press delete and start over.
Remember, Do your own research.