Quote from a Reddit post:
“It’s a purely hypothetical question. Let’s just look at a likely scenario in case you had invested in BTC in January:
Imagine you had bought 5 BTC for $1,000/BTC. In June, your investment was worth $15,000, but then it crashed down to $10,000. Everybody was screaming about how the bubble bursts. Would you have hold on to your BTC? Probably not – it’s likely you would have sold your 5 BTC at $10,000, being happy about doubling your investment and getting out before the bubble bursts. You’re left with $5,000 gains and no BTC.
Then BTC caught fire again, and you may have decided to jump back in at around August @ $3,300/BTC. You invest $5,000 again (you think it’s only what you won before so you don’t really risk anything this time), giving you 1.5 BTC. BTC rallies up to $5,000/BTC, only to crash down to $3000 again. You were smart enough to sell at $4,000/BTC, leaving you with $6,000. Again, you’re happy to have made another $1.000 profit.
I guess you see the point. Even if you’re a smart and/or lucky investor, you would have likely not ended up with much more than maybe 4-5 times of your initial investment, although you theoretically could have made more than 10x.
Don’t get me wrong, 500% are still insane, and you’re still lucky you got in so early. But it doesn’t make you rich. Just looking at the theoretical gains you could have made by buying and holding doesn’t give you a realistic idea of how much money you would have made. And again, I’m sure there are plenty of 10x or even 20x coins out there today, only no-one knows which ones they are. Would you really invest a few thousand dollars in a coin that’s now worth nothing and no-one talks about? And would you hold on to it even during massive dips? Probably not, right? But that’s what you would have to do if you wanted to get rich – and it would only work out if you choose the correct one coin out of the hundreds out there.”