If You Bought Bitcoin In 2020, This Is How Much Money You Earned Each Year?

Investors who have never participated in Bitcoin may have heard about the incredible profits of this cryptocurrency. Although there is still no definite conclusion on whether Bitcoin — and cryptocurrencies in general — are viable assets in the long term, the strong bullish trend that Bitcoin has achieved cannot be denied. As of August 12, 2025, the price of Bitcoin is at $119,681.14, according to CoinMarketCap. This figure compares to just $7,200 on January 1, 2020. For those fortunate enough to hold Bitcoin during this time, this number represents an incredible growth of 1,562.24% over five and a half years. However, one thing to remember about Bitcoin is that it is extremely volatile. While the increases can be spectacular, so can the sell-offs. Since people tend to be emotional when trading — panicking when prices drop and getting excited when prices rise — it is very likely that many holders of Bitcoin sold off this cryptocurrency during one of its famous crashes, such as in 2022. Therefore, if you are considering making Bitcoin an important part of your investment portfolio, be sure to understand the risks involved and why it is so volatile. With that in mind, below is the amount of money you could earn each year from 2020 to 2025 if you invest in Bitcoin. Performance of Bitcoin Each Year from 2020-2025

Aside from the terrible sell-off in 2022, Bitcoin has had an impressive performance. But even those who sold at a price of $16,547.50 in December 2022 have doubled their money if they bought in at a price of $7,200 on January 1, 2020. It is undeniable that over the past five years, Bitcoin has been a great place to invest. For those investors who took risks in 2022 and continued to hold, they have achieved enormous profits in each of the two years over the past five years. The question at hand is whether Bitcoin will continue to achieve these impressive growth levels or will return to the $7,200 level, or even lower. You can find arguments for both outcomes from various analysts and financial experts. For example, billionaire CEO Warren Buffett has called Bitcoin "perhaps the square rat poison." But Cathie Wood, CEO of Ark Invest, argues that even in a bearish scenario, Bitcoin will still reach $300,000 by 2030 — and $3.8 million or more in the best-case scenario.

Each investor must decide for themselves the amount of Bitcoin ( or other cryptocurrencies ) that they will add to their investment portfolio. However, this is only suitable for those with a high risk tolerance, and even then, it is advisable to invest only a small amount. Many financial advisors recommend allocating between 0% to 5% of your portfolio to cryptocurrencies.