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$1000 Worth In Bitcoin, 5 Years Ago Is Worth...Today

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@rollandthomas
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How many of you remember the movie, The Big Short? I think it was one of the best movies about what goes on and around Wall Street. The movie is based on the 2010 book The Big Short: Inside the Doomsday Machine by Michael Lewis about the financial crisis of 2007–2008 which was triggered by the United States housing bubble.

In the movie Michael Baum, a fund manager discovers that the US housing market was about to collapse due to high-risk subprime loans. He created a credit default swap market, allowing him to bet against market-based mortgage-backed securities.

His bet took time to play out and in the process angered his clients because they thought is wasn’t a great use of capital. Many clients wanted out of the fund, but Michael refused withdrawals. The housing market did eventually collapse and his fund's value increases by 489% with an overall profit of over $2.7 billion.

There was another person that made “bank” during that time too. His name is John Paulson. Now honesty, I can’t say I ever heard of John. And that’s the way many on Wall Street would prefer it…to be wealthy and unknown.

Paulson started his firm in 1994 and built his fortune by betting against the U.S. housing market more than a decade ago. The firm’s assets slumped from a peak of $38 billion in 2011 after investment losses and client defections: As of November 2018, it ran less than $9 billion -- and most of that was Paulson’s own fortune.

Paulson never managed to sustain the success and notoriety he found by betting against the housing market in the run up to the last financial crisis. Now, in the midst of an another period of economic turmoil, he’s returning outside investors’ money to focus on his own fortune, which the Bloomberg Billionaires Index puts at $4.4 billion.

He joins a list of industry legends who have recently called it quits amid a generational shift.

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After reading the article the words generational shift stood out to me the most because I took generational shift to mean a transfer of generational wealth. Over the next several decades, many think Millennials will become the wealthiest generation in history as they move away from the traditional banking and conventional monetary system and shift to cryptocurrencies with Bitcoin leading the way.

For example, $1000 spent five years ago would of bought you about almost 4 bitcoins, when the price was trading around $250. However, that same 4 bticoins is now worth about $34,936.89. That’s an ROI of over 3000% and get this, that takes into account the Bitcoin crash we saw in December 2017.

And get this based on stock valuation models and the total addressable market based on a 2020 Crypto Research Report, Bitcoin would hit a shade under $400,000 in 13 years. That would be a return of...I don't even know if my calculator can handle that calculation.

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This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

Posted Using LeoFinance