In this article, we will take a look at the Bitcoin CAGR and measure the annual returns on Bitcoin.
Bitcoin – touted as the new money or the digital money – has seen a significant rise in price in the last decade. There’s been talks and podcasts and news segments on the stellar returns on investment in bitcoin.
But what is Bitcoin?
Bitcoin, an ingenious payment network and a groundbreaking form of currency, emerged in 2009 under the enigmatic identity of Satoshi Nakamoto. The true nature of Satoshi remains shrouded in mystery, leaving us uncertain whether it represents an individual or a collective pseudonym strategically employed to introduce the concept of Bitcoin.
Through the utilization of peer-to-peer technology, Bitcoin operates autonomously without the need for intermediaries such as banks or central authorities. Consequently, the network collectively manages transactions and the issuance of bitcoins, with the network itself acting as the definitive ledger. This decentralized structure eliminates any involvement of middlemen, resulting in reduced transaction costs.
All technology talk aside, Bitcoin has been mostly in the news for its potential as an investment or speculation.
Bitcoin Average Return For Last 10 Years: 10 Year Bitcoin CAGR
Let’s take a look at the compound annual growth rate of Bitcoin over a 10-year period. The period we are considering is May 2013 to May 2023.
In this period we observe that the Bitcoin price grew from $129 points to $27,216 per BTC coin, over a period of 10 years.
From 129 in 2013 to 27,216 in 2023
Let’s use our CAGR Calculator to calculate the Bitcoin CAGR for 10 years.
Putting in the values in the CAGR Calculator, we get the answer that the 10 year CAGR of Bitcoin was 70.77% between May 2013 and May 2023.
- Stock Market CAGR Returns: Average Annual Stock Market Returns In Last 30 Years
- def CAGR: How To Calculate CAGR in Python By Defining 1 Easy Function
- Population CAGR: India vs China Population Growth Rate In Last 60 Years
- Dow Jones CAGR: The Compound Annual Growth Rate of Dow Jones Industrial Average
- S&P 500 CAGR: The Compound Annual Growth Rate of S&P 500 Index
- CAGR Formula in Excel: 2 Easy Methods To Calculate CAGR in Excel
- CAGR Formula in Google Sheets: 2 Easy Methods To Calculate CAGR in Google Sheets
Bitcoin Average Return For Last 5 Years: 5 Year Bitcoin CAGR
Let’s take a look at the compound annual growth rate of Bitcoin over a 5-year period. The period we are considering is May 2018 to May 2023.
In this period we observe that the price of Bitcoin grew from $7,503 to $27,216 per coin, over a period of 5 years.
From 7,503 in 2018 to 27,216 in 2023
Let’s use our CAGR Calculator to calculate the Bitcoin CAGR.
Putting in the values in the CAGR Calculator, we get the answer that the 5 year CAGR of Bitcoin was 29.40% between May 2018 and May 2023.
We have shown two examples here to calculate the Bitcoin CAGR, but there are an infinite amount of time periods for which you could compute the CAGR. So, let’s take a look at how you can calculate the Bitcoin CAGR for any time period.
Bitcoin Average Return: How To Calculate Bitcoin CAGR?
Calculating the Bitcoin CAGR is easy, simply follow the steps below:
Go to Investing.com (or Yahoo Finance or Google Finance) and search for Bitcoin in the search bar.
On Investing.com, pick the first result, Bitcoin US Dollar, with the symbol ‘BTC/USD’.
Click on ‘Historical Data’ tab under ‘General’, choose ‘Monthly’ data points, pick a date range ‘From – To’ using the date range picker.
You can download the data and open it in a Spreadsheet (Google Sheets or MS Excel) or simply scroll down to note the values for your start and end dates.
Now you have the starting value (129), ending value (27,216), and the time period (10 years). Feed these values in the CAGR Calculator fields – initial amount, final amount, and years respectively. Hit Calculate CAGR, and you have your Bitcoin CAGR!
Is there a Bitcoin return calculator?
You can use the online CAGR Calculator as explained in this article to calculate the historical Bitcoin annual returns.
What is the Bitcoin average annual return?
The Bitcoin average annual return depends on the time period we want to observe. For example, as shown in this article, over the 10-year period from 2013 to 2023, we have seen an average annual return of 70.77%. But, during the 5-year period from 2018 to 2023, we have observed an annual average return of 29.40%