If I Invest $5000 in Bitcoin Today, How Much Is It Worth Later?

Published: 19th June, 2024 | Last Updated: 10th June, 2024

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

Investing in crypto has become one of the most talked-about financial strategies in recent years. If I Invest $5000 in Bitcoin today, how much will it be worth later?

In this post, I will walk you through different scenarios of how much your Bitcoin will be worth if you buy $5000 today. 

Let’s look at some popular predictions about the price of Bitcoin and how much your 5K investment would increase.

This article is part of my series on how to buy crypto.

1. Conservative Estimate

Bitcoin Price Chart

At the time of writing, the price of Bitcoin was $69358. Bitcoin could reach an all-time high of between $100,000 and $150,000 if all goes well. This means that your 5K could grow by 40% to 7042. 

2. Bitcoin Replaces Gold

Currently, the most popular store of value is gold. The value of all gold today stands at $13.& trillion. If Bitcoin were to replace gold as a store of value, its price would go to $700K, which means your $5K investment would be worth $50K. 

3. Bitcoin Reaches Jack Mallers’ Predictions

Jack Mallers is the founder of Strike, an app that allows you to buy, store, and send crypto. In a recent podcast with Antony Pompliano Mallers, he predicted that Bitcoin would reach $1Mn. This is a number that other people in the crypto industry believe, including Cathie Wood of Ark Invest and Michael Saylor of MicroStrategy. 

Your $5000 Bitcoin investment will grow to $71,400

The table below shows how much your 5K investment could grow, assuming different Bitcoin price points.

How much you could make from 5K in bitcoin

Bitcoin price Total investment value Profit
$70,000 $5,000 $0
$100,000 $7,143 $2,143
$150,000 $10,714 $5,714
$300,000 $21,429 $16,429
$500,000 $35,714 $30,714
$700,000 $50,000 $45,000
$1,000,000 $71,429 $66,429
$2,000,000 $142,857 $137,857
$10,000,000 $714,286 $709,286

Bitcoin Investment Calculator

In the calculator below, you can enter the current price of Bitcoin, the amount you plan to invest in, and the price you predict it will reach. 

Bitcoin Calculator

How much will I pay in fees if I invest $5000 in Bitcoin today?

If this is your first time buying Bitcoin, you should be aware of the following fees.

  • Deposit fees. Depending on the payment method you choose, these can range between 0 and 5%. If you make a bank transfer, it is usually free. If you use a debit or credit card, you can expect heftier fees at 3-5%
  • Once you deposit your fiat money into an exchange, you will need to trade it for bitcoin. This will incur trading fees. The pro versions of crypto apps offer much better exchange rates. This will usually be less than 0.7%. Otherwise, you risk paying around 5% in fees and spreads if you use the standard versions.
  • Finally, when you send your Bitcoin to a wallet, you will need to pay network fees to the miners who verify Bitcoin transactions. This fee will be negligible if you move $5,000 worth of bitcoin.

Is It Worth Investing $5000 in Bitcoin? 

If I Invest $5000 in Bitcoin Today How Much Is It Worth Later?

Short-Term Investors

If your strategy is to invest in the crypto market for the short term, then Bitcoin is not the coin that will make you rich. While early investors in Bitcoin saw magnified returns, the market cap of Bitcoin has swelled to 1.3 trillion, which means the potential returns are lower than if you invest in a coin with a lower market capitalization. 

If Bitcoin reaches $700,000, your investment will increase to $50,000. This is a fantastic increase and, in traditional financial markets, is very unusual even for the best stocks. However, in the land of crypto, 10x gains are not uncommon. There are blue-chip coins, such as Ethereum and Solana, that have much more room for growth in the current bull run. There are also many coins with a lower market cap that will see between 10x to 100x gains. However, knowing which ones these are requires researching to diversify your portfolio. You aren’t going to hit the jackpot just by investing in one coin, and your portfolio should be weighted towards the less risky coins that are expected to do well in the bull run.

If you decide to invest in something other than Bitcoin, avoid meme coins. Meme coins such as Dogecoin and Shiba Inu are even more unpredictable than other crypto assets and are best avoided by beginners. 

Some of the most popular currencies are 

  • Ethereum since the Securities Exchange Commission has recently approved an Ethereum ETF. This means that significant institutions and retail investors can now buy ETH. 
  • Solana is Ethereum’s main competitor and has more room for growth. On the downside, Solana keeps crashing. 
  • Avalanche AVAX which is seen as a contender to SOL and ETH
  • Polkadot is revamping its relay chain and marketing more heavily. 

See my guide on how to buy crypto for more details. 

Long-Term Investors

If you are planning to invest in Bitcoin for the long term, $5K is a decent amount to start with, and you can always top up periodically. 

Will Bitcoin increase in value? 

Here are a few reasons people I follow think that Bitcoin’s price will increase

  • Technical indicators such as moving averages indicated that we are far from the peak of the market cycle. 
  • In addition, the regulatory environment in the United States is becoming more friendly, as Donald Trump has made it clear he is pro-crypto. With 50 million voters holding crypto, the topic has become an important electoral issue. 
  • Raoul Pal of Real Vision Capital says that from a macro perspective, bitcoin prices are expected to rise. 
  • The amount of bitcoin that miners receive as a reward was halved in April 2024. The price of bitcoin has always rallied after having.
  • Both Hong Kong and the United States approved Bitcoin ETFs in 2024, which means more mainstream investors can buy Bitcoin in addition to their traditional investments in their 401K plans, etc.  

Why is Bitcoin Worth Anything? 

 Investing $5000 in Bitcoin

The Bitcoin network was developed by Satoshi Nakamoto in January 2009 as a response to the global financial meltdown following the subprime mortgage crisis. During the period, central banks pumped a lot of money into the economy to save banks that were too big to fail. The Bitcoin blockchain allows people to send the digital coin to each other without a central authority. The maximum amount of Bitcoin that can ever be in circulation is fixed at 21 million, which means there can never be more than that amount. 

What Do You Do With Your Bitcoin After You Buy It? 

The safest place to store your BTC is in a Bitcoin wallet. This wallet can be a digital software wallet, such as an app, browser extension, or a hardware wallet device. 

FAQs

Will I need to pay capital gains tax? 

In the US and most other countries, you only need to pay capital gains tax if you are selling your Bitcoin. So if you invest $5K today and your Bitcoin is worth $7K next year, you will need to pay tax on that $2K in profit. In most countries, this amounts to 15%. 4

What will $1000 of Bitcoin be worth in 2030?

If Bitcoin grows to $700K by 2030, a $1000 investment today will be worth $10,000. For Bitcoin to reach $700K, its market cap would increase by ten times and get the same valuation as gold. 

Is investing $1000 in Bitcoin worth it?

If you are looking to make a quick buck, be aware that you are not going to become a millionaire if you invest $1000 in Bitcoin. However, if you start dollar-cost averaging into Bitcoin, you could see significant gains provided Bitcoin continues along the same trajectory it has been for the past few years. The other alternative is to invest in smaller coins, but this depends on your risk tolerance. 

How long will it take for Bitcoin to reach $1 million?

Jack Mallers, founder of Strike, estimates it could happen as soon as 2025. For others, this is more drawn out and will take more than ten years. 

How much will $50 of Bitcoin be worth in 5 years?

If Bitcoin reaches a $300,000 valuation, then $50 in Bitcoin today will be worth $214. If Bitcoin were to reach $1,000,000, then it would be worth $714

What if I invested $1,000 in Bitcoin 5 years ago?

In January 2019, Bitcoin was worth $3500. If you had bought $1000 worth of Bitcoin five years ago today, that same amount would have been worth $20,000.

Should I put 10k in Bitcoin?

Most Bitcoin proponents recommend investing 5-10% of your wealth in Bitcoin. $10,000 is probably not going to make you rich at this stage, even if it grows to $100,000, but if it’s part of a broader balanced investment strategy that includes investing in the stock market, real estate, etc., it could make sense.

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

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