The first known commercial use of Bitcoin was a purchase of two pizzas in 2010 by programmer Laszlo Hanyecz for 10,000 BTC, which is equivalent to roughly $400 million at today’s valuation.
Most people had never heard of Bitcoin in 2010, and even fewer would have considered it an investment-worthy asset. But a decade later, investing in Bitcoin is growing in popularity with advances in cryptocurrency, blockchain technology, and the metaverse.
Investing in Bitcoin has been compared to investing in “digital gold.” Setting aside the inflation-hedge claims of Bitcoin enthusiasts, comparing it to gold is a good analogy when considering the myriad ways to invest in Bitcoin.
For example, you can theoretically mine gold from the ground, buy physical gold coins, put your money in an exchange-traded fund (ETF) that owns gold, or even invest indirectly in companies involved in the gold industry. Similarly, you can also mine Bitcoin using your computing power, buy Bitcoin directly through a cryptocurrency exchange, invest in a fund that controls Bitcoin, or buy shares in publicly-traded companies that use Bitcoin and its underlying blockchain technology.
Each of these methods has different advantages and disadvantages, and which you choose depends on your hopes, dreams, goals and ultimate risk tolerance.