Bitcoin's ability to act as a true fiat currency alternative is still developing.
Its widespread acceptance by institutions, financial advisors, and the SEC means that it's become part of a real portfolio allocation.
Bitcoin's explosive price growth over the past several years has made it extremely profitable for holders.
In 2016, Bitcoin (CRYPTO: BTC) was still an emerging technology. Trading at around $400, it was still fighting for acceptance as a legitimate alternative to fiat currency.
Fast forward 10 years, Bitcoin has arrived. Institutions own it. Financial advisors are putting it in model portfolios and client accounts. The Securities & Exchange Commission (SEC) has approved ETFs for it. And it's paved the way for other cryptos, such as Ethereum (CRYPTO: ETH), Solana (CRYPTO: SOL), and XRP (CRYPTO: XRP), to emerge themselves.
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Bitcoin remains highly volatile as an investment, but it's also produced huge returns for investors over the years. It's still down about 30% from its all-time highs, but long-term holders still have plenty of reason to be pleased.
Over the past decade (as of 1/26/26), Bitcoin has risen by roughly 21,900%!
That means a $100 investment made into Bitcoin 10 years ago and held for the duration would have turned into $21,900.

Bitcoin Price data by YCharts
For many, Bitcoin is still more of a speculative growth asset that belongs in a diversified portfolio. It's been a reasonable diversifier when paired with both the U.S. dollar and the S&P 500 (SNPINDEX: ^GSPC). Its real potential, however, remains as a fiat currency alternative.
With the AI revolution still in its early innings and the global monetary system evolving, the time for Bitcoin may still be ahead.
Before you buy stock in Bitcoin, consider this:
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David Dierking has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Solana, and XRP. The Motley Fool has a disclosure policy.