A Brazilian child who was gifted one Bitcoin back in 2017 has reaped a massive 6400% profit on it. The 4-year-old girl received the Bitcoin from her father when it was just worth under a thousand dollars and now as things stand, the crypto is now worth 6400% more.
Jao Canhada, the Brazilian entrepreneur who founded the exchange Foxbit had gifted a nice round figure of 1 BTC to his newborn daughter back in early 2017. He was an early adapter of the cryptocurrency in the country and a big believer in the digital currency movement.
Canhada said:
“As soon as my daughter was born, in 2017, I bought 1 Bitcoin for her, not just as a gift, but as a way of investing in this new economy. At the time, BTC cost 5,000 Brazilian Real.
Now it is worth 332,000 Brazilian real, which is a massive appreciation. Canhada purchased at a good time because it was back then that the digital currency was last available below $1k. After 2017’s end, the lowest it has gone is around $2.9k and that too only once or twice in total. Now, the digital currency is hovering around record highs of $60k+ and is slated to rise to as high as $80k-$100k by the end of the year.
Later on, we may have another long-term bear market that will last around 2-3 years but this time, analysts believe that the index won’t go below $25k-$30k. Meaning, the people who bought the crypto in 2020 below $20k will have the last laugh as the index may not go below it ever again.
Bitcoin’s bull runs normally revolve around the halving mechanism. After every roughly four years or so, Bitcoin’s block reward aka supply is halved. In 2012, it was reduced from 50 BTC to 25 BTC. In 2016, it reduced from 25 BTC to 12.5 BTC and then from 12.5 BTC to 6.25 BTC in 2020 and in 2024 it will be halved from 6.25 BTC to 3.125. In every year following the halving, we have had some fantastic bull runs that have propagated the price further and increased its appeal overall.
There are many critics that believe that Bitcon’s ship has sailed and there aren’t considerable profits left in it in the long-term. It couldn’t be farther from the truth. While a mammoth increase like Canhado’s 6500% may be a bit difficult now in the next year years, around 8,000%-10,000% increase is still very much possible if one can buy at the bottom point of the next bear market. It is because the next bull run in 2020 is likely to appreciate the cryptocurrency past $200k. Traders just have to buy when the big dip comes.
Image Source: pixabay.com
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