Bitcoin first hit $1 on February 9, 2011, achieving parity with the U.S. dollar for the first time. This milestone, which signaled its shift from an experimental project to a recognized digital asset, occurred on exchanges like Mt. Gox following a rapid rise from roughly $0.30 at the end of 2010.
According to historical data at Investing.com, Bitcoin's price never broke above $0.40 per bitcoin in 2010 but did manage to hit that level in early 2011. Then in February, it crossed $1. Just a few months later, in May, it briefly exceeded $8 — a stunning 8-bagger in mere months!
5 years ago: If you invested $1,000 in Bitcoin in 2020, your investment would be worth $9,689. 10 years ago: If you invested $1,000 in Bitcoin in 2015, your investment would be worth $496,927. 15 years ago: If you invested $1,000 in Bitcoin in 2010, your investment would be worth about $1.62 billion.
Despite extreme volatility, Bitcoin's price has skyrocketed 1,060% in the past five years as I write this. This monster gain would've turned a $10,000 initial capital outlay in October 2020 to a whopping $115,700 on Oct. 6.
The growth of a $100 investment in Bitcoin
If you had invested $100 in Bitcoin 10 years ago, you would have about $20,000 today, as the leading cryptocurrency has grown by nearly 20,000% (as of Dec.
Laszlo Hanyecz, a programmer and early Bitcoin miner, famously traded 10,000 Bitcoin for two Papa John's pizzas on May 22, 2010, marking the first documented commercial transaction for physical goods with cryptocurrency, a day now celebrated as "Bitcoin Pizza Day". At the time, the Bitcoins were worth only about $41, but the value of those coins would later grow to be worth hundreds of millions, even over a billion dollars, making it one of history's most expensive pizzas.
Edward Hadad, a certified financial planner at Financial Asset Management Corp., recommends that speculative assets like crypto or gold should not exceed more than 5% of a person's portfolio, regardless of market conditions.
Key Takeaways. The IRS treats cryptocurrency as property, meaning that when you buy, sell or exchange it, this counts as a taxable event and typically results in either a capital gain or loss. When you earn income from cryptocurrency activities, this is taxed as ordinary income.
Bitcoin is a highly speculative, volatile, high-risk investment, not suitable for everyone, but potentially rewarding for those with high risk tolerance who can afford to lose their investment, often suggested as a small portion (e.g., <10%) of a diversified portfolio, with potential for high returns but also massive price swings and risks like scams, hacking, and lack of regulation. It's seen as a store of value by some but lacks traditional fundamentals like cash flow, making its valuation uncertain.
Gold continues to outperform bitcoin in periods of geopolitical or market stress, reaffirming its reputation as a risk-off asset. Bitcoin, meanwhile, tends to move with broader risk assets, sometimes amplifying portfolio volatility rather than protecting against it.
If Nakamoto is an individual person, then his bitcoin holdings make him one of the world's wealthiest people. His wallet, which has been untouched since 2010, holds an estimated 1.1 million bitcoins. At their July 14, 2025 price of more than $123,000 each, these were worth nearly $135 billion.
Key Takeaways
Blockchain data shows that there are just under 1 million wallet addresses that hold one full bitcoin. Many large holders, such as cryptocurrency exchanges, hold their bitcoin across multiple wallets, which puts the estimate for individual owners of at least one bitcoin closer to 800,000.
Even modest investments (like $100) can deliver meaningful returns if Bitcoin's price rises. Investing small amounts can be a great way to become familiar with the cryptocurrency market.
Later, Jeremy ordered the two pizzas from Papa Johns, which were then delivered to Laszlo. “How lucky they must have been to find all that money in their hands!”. Actually, Papa Johns didn't receive any Bitcoin. For a straightforward reason: Papa Johns didn't accept Bitcoin in 2010.
The first real-world Bitcoin transaction was on May 22, 2010 (also known as Bitcoin Pizza Day), when Laszlo Hanyecz paid 10,000 BTC for two Papa John's pizzas (roughly $41 at the time, or $0.0041 per Bitcoin).
How much to invest to become a millionaire varies depending on your age, your risk tolerance, and Bitcoin's future price growth. In the optimistic case that Bitcoin hits $500,000, you would need to invest more than $167,000 today. It's difficult even for experienced traders to find the perfect time to enter the market.