Bitcoin and Ethereum: How much could be earned in a year by investing $100

The past year 2021 was a landmark year for Bitcoin and Ethereum. A number of coins reached new heights, thanks to which many investors became millionaires, and the total market capitalization briefly reached $3 trillion. However, many still did not take advantage of the opportunity and did not invest in this type of assets.

Against this background, it was calculated how much could be earned by investing only $100 in one of the largest cryptocurrencies in terms of capitalization – Bitcoin and Ethereum.

Bitcoin:

• Exchange rate of one BTC on Jan. 1, 2021: $29,290
• Rate of one BTC on January 1, 2022: $47,327

An investment in bitcoin of $100 in early 2021 would buy 0.0034 BTC. By January 1, 2022, that fraction of the coin could be sold for about $163.2.

The year of the White Bull brought significant momentum to the first cryptocurrency. In 2021, bitcoin’s value increased about 65%, and in February, the capitalization of BTC reached $1 trillion. However, since then it went down to almost $900 billion.

Ethereum:

• Exchange rate per ETH on Jan. 1, 2021: $730.3
• Exchange rate per ETH on January 1, 2022: $3723.1

For Ethereum, the cryptocurrency of the Ethereum blockchain, the past year was even more successful than for bitcoin. The value of one ETH coin in the last 12 months has increased by more than 400%, and in November it reached its historical maximum, exceeding the mark of $4.8 thousand.

Thus, an ETH bought for $100 at the beginning of 2021 could be sold for $522.6 at the end of 2021. Thus, the proceeds would exceed $400.

Ethereum supporters argue that once the blockchain is upgraded to Ethereum 2 in 2022, it will become more scalable sustainable and secure. This includes switching from the Proof-of-Work (PoW) model to Proof-of-Stake (PoS).

The fundamental difference between the two is that with PoS, rewards come from storing coins (stacking), while with PoW, new tokens are mined by computation (mining). The latter method is considered to be more energy-consuming and, therefore, more damaging to the environment.

It should be remembered that cryptocurrencies are a highly volatile asset. Therefore, all investments in this sector should be made with maximum caution and solely at your own risk.

Director of Galaxy Digital Holdings and billionaire investor Mike Novogratz predicted bitcoin fall to $40-42 thousand in 2022. But he recommends not to fear it in the medium term, because then the cryptocurrency is waiting for growth.