Benzinga - Back in April 2013, Bitcoin (CRYPTO: BTC) experienced the downside of its own success as investors flocked to this exciting new opportunity that was making waves in mainstream media.
What Happened: The trading activity became so intense that Mt. Gox, one of the prominent Bitcoin exchanges at the time, struggled to handle the overwhelming volume.
When the market eventually crashed, hackers took advantage of the vulnerability, pushing Mt. Gox into an unprecedented total shutdown. This resulted in a significant price drop, with Bitcoin plummeting from nearly $260 to $50.
Reflecting on this eventful period, it is interesting to note that if someone had invested $100 in Bitcoin during its crash in 2013 (which involved an 84% decline), that investment would now be sufficient to pay off their student debt loans.
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Why It Matters: Over the past three decades, the cost of college education has steadily increased.
Tuition expenses at public four-year colleges have risen from $4,160 to $10,740, while private nonprofit institutions have seen an increase from $19,360 to $38,070 (adjusted for inflation), as reported by Forbes. As a result, students have increasingly relied on financial aid, including student loans, to finance their education.
Forbes data shows that the national average balance for federal student loan borrowers stands at $35,210. However, certain states and territories have significantly higher loan balances. Washington D.C. leads the list with an average balance of $54,708.52, followed by Maryland with $42,350.91, Georgia with $40,268.87, Virginia with $38,251.37, and Florida with $37,709.72.
$100 Investment: If you had invested $100 during the 2013 market crash when BTC was trading at $50 on April 17, 2013, your investment would have experienced a remarkable gain of 60,016%. This means that your initial $100 would now be worth $60,116.
This growth would easily enable to clear any pending student loans and alleviate the financial burden associated with education expenses.
Price Action: At the time of writing, Bitcoin was trading at $30,058, down 0.24% in the last 24 hours, according to Benzinga Pro.
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