News & Insights

Bitcoins – tulip mania?

The Bitcoin

So nearly 400 years later, have lessons been learned from the Dutch experiences of ‘euphoria investing’ ? This leads to the topic of Crypto currencies which goes back to only 2008 thanks to Satoshi Nakamoto who launched the first peer to peer digital cash system. The whole topic of what bitcoins really are, how you buy them, store them and sell them is far too complex to explain here. Regardless of what they really are and what you can do with them almost becomes irrelevant when you consider the ecstatic increase in value since 2008 or even the last month !

To illustrate this, the below table shows some highlights of price fluctuations over the seven years. Had you held $100 worth of bitcoins like lucky Laszlo Hanyecz in May 2010, that same amount of bitcoins would be worth no less than $56million today.  Even a single $1 investment would be worth a staggering $560,000 only seven years later.


Bitcoin value history (comparison to US$)
Date USD : 1 BTC Notes
May 2010 < $0.01 On 22 May 2010,Laszlo Hanyecz made the first real-world transaction by buying two pizzas in Florida for 10,000 BTC
July 2010 $0.08 In five days, the price grew 1000%, rising from $0.008 to $0.08 for 1 bitcoin.
July 2011 $31 top of first “bubble”, followed by the first price drop
Nov 2013 $350 — $1,242  
Dec 2013 $600 — $1,000 Price crashed to $600, rebounded to $1,000, crashed again to the $500 range. Stabilized to the  $650–$800 range.
Apr 2014 $340 — $530 The lowest price since the 2012-2013 Cypriot financial crisis.
September 2016 $600 — $630 Price stabilized in the low $600 range.
March 2017 $1,290+ Price broke above the November 2013 high of $1,242 and then traded above $1,290.
September 2017 $5,000 Price reached $5,000 for the first time on 1 September 2017.
September 2017 $2,900 11 days later, the price dipped harshly from China’s bitcoin ICO and exchange crackdown.
October 2017 $5,600 Price shot back up as the world moves on past the incident following China’s crackdown and reaches its maximum in the history of bitcoin.


Without doubt, the Crypto currency revolution has caught the eye of many of us. But would you buy today at $5,600 when seven years ago the price was less than $0.01? According to Peter Smith, CEO and co-founder of Blockchain, the price could soar to $500,000 by 2030. Many others predict this is just another financial bubble of catastrophic proportions. Either way, the topic is fascinating.

This article is not intending to give advice and is for information purposes only. The trading in any cryptocurrency is extremely high risk and should only be considered with money you are prepared to lose. 

Other News

Small pension pots: The solution

CactiiAre you yet to draw on your pension and have one or more dormant, frozen pension pots from when you were employed or self-employed? If you have had a number of jobs during your career, you could have a series of separate pension plans which, while individually may not add up to much, you are relying on to provide you with an income during your retirement.

Read More

How safe is your pension?

We have all read in the press recently about the demise of BHS, but the most worrying part of the story is how this will impact UK taxpayers and BHS pensions. UK taxpayers will have to cover the statutory redundancy pay of the company’s 11,000 staff. Based on previous failures, such as Comet, city experts believe the bill will top £40 million.

At the same time, every worker in the UK who is a member of a company pension scheme will have to help fill a black hole estimated at £571million in the BHS pension scheme. This is because the Pension Protection Fund, which steps in when businesses collapse, gets its money through a levy imposed on all company schemes. 

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information:

You are currently viewing the Blacktower Financial Management EU website.

You may be looking for the Blacktower United States website.

Blacktower United States > X Stay on this site

Or choose your country.