When I was telling my wife about cryptocurrency and how I think its a good investment, she asked me an interesting question. What percent return should one expect in a year? Lets say one decides to put $10,000 in...if it were the stock market, and that person is diversified, it would be reasonable to assume a 6-8 percent return for the average investor on an average year. I realize its hard to determine what "well diversified" means in crypto, but lets say 75% mixed with ETH, LTC, BTC and the other 25% in a mix of top 10 (NEO, Ripple etc). Clearly 2017 saw tremendous returns on these coins, but its not realistic to assume 2018 will also bring over 1000% returns like this year. I know there isn't much historical data to pull from, but just wondering what you guys think is a reasonable expectation (not to the moon as some say!)
So if one put $10,000 in on January 1 2018 in my model of diversification (i.e. someone new to the game who isn't going to buy ICO's and speculative coins), what do you see their balance being December 31, 2018?
Looking forward to hear everyones thoughts!
Let us hear from the economics and finance experts regarding this question. We actually have a lot of data in terms of Bitcoin's growth because Bitcoin has been here for a while--almost a decade already. If we use the pattern of growth for Bitcoin, your $10,000 could easily reach $50,000 by the end of 2018. In altcoins, you can have a bigger profit. Let us try to consider Ethereum, for example, it used to be just less than $20 a year ago and it even went as down as less than $10 within 2017. Right now, the growth is around 5,000%. And that is less than a year even.