Holding Pattern Showdown: Bag A vs Bag B – A 3-Year Cryptocurrency ROI Prediction

It is often said that the essence of investment wisdom is diversification. In the world of cryptocurrency, having different currencies in a single portfolio, often called a "bag," can be a strategic move. In this article, we compare two hypothetical portfolios (Stock A and Stock B), each comprising three different cryptocurrencies, and predict their returns over a 3-year span. Let's take a look at this cryptocurrency ROI prediction article.

Exchange A contains Cardano (ADA), Ripple (XRP) and Bitcoin (BTC), while Exchange B is made up of Ethereum (ETH), Shiba Inu (SHIB) and Litecoin (LTC).

Cryptocurrency ROI Prediction: Current Snapshot

Before we jump into the future predictions, let's take a look at the current market prices:

• ADA: $0.286
• XRP: $0.4673
• BTC: $30,132.95
• ETH: $1,861.39
• SHIB: $0.000007625
• LTC: $93.75

We will use these prices as the basis for our calculations.

Cryptocurrency ROI Prediction: Predicting the Unpredictable

Before proceeding, it is vital to remember that cryptocurrency markets are notoriously volatile, and predicting specific values ​​can be challenging. The calculations provided here are hypothetical, based on past performance and current market trends, and should not be considered as financial advice.

Exchange A: ADA, XRP, BTC: A Detailed Calculation

Let's analyze each cryptocurrency on Exchange A with an initial investment of $1,000:

Cardano (ADA): At a current price of $0.286 per ADA, an investment of $1,000 would buy approximately 3,496.50 ADA. A projected growth of 300% over three years would increase the price to around $1,144 per ADA. This would give us a future value of 3,496.50 ADA * $1,144 = $4,000.

Ripple (XRP): An investment of $1,000 at the current XRP price of $0.4673 would buy approximately 2139.54 XRP. With an expected growth of 200%, the price would rise to approximately $1.4019 per XRP. This gives us a future value of 2,139.54 XRP * $1.4019 = $3,000.

Bitcoin (BTC): At the current BTC price of $30,132.95, an investment of $1,000 would give us approximately 0.0332 BTC. A predicted growth of 100% would bring the price to about $60,265.90 per BTC. This results in a future value of 0.0332 BTC * $60,265.90 = $2,000.

The total future value of Bag A would be $4,000 (ADA) + $3,000 (XRP) + $2,000 (BTC) = $9,000. Subtracting the initial investment of $3,000 results in a total profit of $6,000, representing a 200% return on the original investment.

Exchange B: ETH, SHIB, LTC: A Detailed Breakdown

Let's perform similar calculations for Stock B with an initial investment of $1,000 in each currency:

Ethereum (ETH): An investment of $1000 at the current price of $1861.39 per ETH would give us approximately 0.537 ETH. With a forecast increase of 200%, the price could rise to around $5,584.17 per ETH. This gives us a future value of 0.537 ETH * $5,584.17 = $3,000.

Shiba Inu (SHIB): At the current price of $0.000007625 per SHIB, $1,000 would buy approximately 131,062,500,000 SHIBs. If SHIB were to increase by 500% over three years, the price would be around $0.00004575 per SHIB. This gives a future value of 131,062,500,000 SHIB * $0.00004575 = $6,000.

Litecoin (LTC): An investment of $1000 at the current LTC price of $93.75 would give us approximately 10.67 LTC. If the price of LTC increased by 100% to approximately $187.50, this would give us a future value of 10.67 LTC ​​* $187.50 = $2,000.

The total future value of Stock B would be $3,000 (ETH) + $6,000 (SHIB) + $2,000 (LTC) = $11,000. Subtracting the initial investment of $3,000 gives a total profit of $8,000. This represents a return of 267% on the initial investment.

Benchmarking ROI Analysis: Detailed Calculations and Cryptocurrency ROI Prediction

ROI is calculated as follows:

ROI = (Future Value – Initial Investment) / Initial Investment * 100%

Bag A:

For ADA, XRP, and BTC, we have future values ​​of $4,000, $3,000, and $2,000 respectively. Each of these started with an initial investment of $1,000.

• THERE IS ROI: (4000 – 1000) / 1000 * 100% = 300%
• XRP ROI: (3000 – 1000) / 1000 * 100% = 200%
• BTC ROI: (2000 – 1000) / 1000 * 100% = 100%

The overall ROI for Bag A is an average of the individual ROIs:

(300% + 200% + 100%) / 3 = 200%

Bag B:

For ETH, SHIB, and LTC, we have future values ​​of $3,000, $6,000, and $2,000 respectively. Each of these started with an initial investment of $1,000.

• ETH ROI: (3000 – 1000) / 1000 * 100% = 200%
• SHIB ROI: (6000 – 1000) / 1000 * 100% = 500%
• LTC ROI: (2000 – 1000) / 1000 * 100% = 100%

The overall ROI for Bag B is an average of the individual ROIs:

(200% + 500% + 100%) / 3 = 267%

Given these assumptions, Stock B provides a higher average ROI over the 3-year period, but it is also important to remember that these predictions are highly speculative and do not take into account the high volatility and risk associated with cryptocurrency investments.

Do you want to trade cryptocurrencies? Click HERE do it with eToro!

Conclusion

Based on these hypothetical predictions, bag B (ETH, SHIB, LTC) appears to have a higher return potential over three years. However, it is essential to remember that cryptocurrency investments are inherently risky and unpredictable. Careful analysis, diversified investments, and understanding risk tolerance are key to navigating the crypto seas. Always do your own research or consult with a financial advisor before making investment decisions.

you might also like

---

More from Altcoins

---