A £1,000 Bitcoin investment made in the middle of 2013 would now be worth more than £175,000.
People looking to replicate the success of the first Bitcoin investors, are investigating ‘alt-coins’ including Ethereum, Litecoin and Ripple, in the hope they can be bought cheaply now and sold for a much higher price at a later date.
Oliver Isaacs, an entrepreneur and tech investor, made early investments in all these cryptocurrencies. He thinks that some of these digital denominations, could end up being worth more than Bitcoin.
“Litecoin is finally benefiting from the broader interest in cryptocurrencies, and I see no reason, despite still being very early stages, why the price cannot eventually match or even surpass Bitcoin’s price over time”.
It has an advantage over Bitcoin because transactions happen more quickly, allowing buying and selling at increased speed.
‘As cryptocurrencies are becoming increasingly accepted by mainstream investors, institutional investors and hedge funds, I think investors will be looking to diversify their portfolios away from Bitcoin into altcoins like Litecoin,’
Isaacs added. Cryptocurrencies including Bitcoin, Ethereum, Ripple and Litecoin have seen unprecedented growth in 2017, despite remaining extremely volatile.
Litecoin shot up in price from about $4.50 at the beginning of the year to more than $320.
Earlier this month, it shot up 333 percent in just a few days.
It’s not the only alt-coin that’s exploding in value. The price for Ethereum is now at $706 after shooting up from a little over $8 at the beginning of the year.
That’s a rise of nearly 8,300 percent!
These two coins are likely to grow in value because they can be bought using Coinbase, which is now the most popular app on the Apple App Store.
Another alt-coin has also been growing in value at an astonishing rate. Ripple shot up by 50 percent this week to become the fourth largest cryptocurrency.
When choosing where to put your money, it’s important is that you ensure that businesses accept the coin. There’s no point buying a currency no-one wants to trade in.
Look for future growth potential.
Analyse the team behind the currency. Make sure they have a good track record. Try to make sure there are no loopholes which could allow manipulation of the currency. If people lose trust in its value, it will rapidly become worthless.
So should you ditch Bitcoin and take a risk with a new currency?
Isaacs has this advice for prospective investors:
‘I have invested in coins I think are undervalued because of lack of awareness, but which have strong infrastructure or interesting economic models.
Currencies that provide a purpose or value, future applications in our everyday lives, and solid growth, and management team are the ones I personally invest in’.
‘Bitcoin is still king right now and is the market leader in terms of value per coin. It is also the one that most are currently familiar with and is, therefore, the most widely used globally.’
On a personal note, I did open a Xapo account and invested £500 into Bitcoin. I did think better of that. The reality is that to multiply that investment by 10x requires that the price of Bitcoin, increases tenfold. Which seems to be a huge leap of faith.
I’m happy to potter along at in Litecoin with Coinbase.
Just had a challenge verifying my account, but should be sorted later.
Investing in any of these could make you a mint – or lose you a fortune – so we’d advise making decisions extremely carefully.