Everywhere you look right now, Bitcoin—and crypto more broadly—is back in the spotlight. And for good reason.
As concerns over fiat currency and ballooning deficits grow louder, so too does interest in an alternative store of value. Pair that with increasing adoption and deepening institutional involvement in an asset with a fixed supply, and you have a recipe for potentially explosive long-term growth.
To put it in perspective:
- A $10,000 investment in Bitcoin in 2014 would be worth nearly $2.1 million today.
- That same investment in the S&P 500—an outstanding performer over the past decade—would be worth $32,700.
But here’s the catch: It’s never as easy as it looks in hindsight.
In the last 10 years, Bitcoin has experienced three separate drawdowns of 75% or more. The average intra-year decline? -44%. Those are staggering numbers. The kind of volatility that shakes even seasoned investors out of position.
So while Bitcoin has the potential to create generational wealth, the path is anything but smooth. Investors often focus on the upside, but few are truly prepared for the gut-wrenching ride along the way.
I’m not saying don’t invest in crypto—but if you do, understand what it takes to stay the course. Sitting on your hands during a 75% drawdown isn’t a strategy most people are wired for.
Know the risk. Respect the volatility. Then decide if it fits your plan.
