Monday, January 1, 2018

Nothing Beat Bitcoin in 2017, Right? -- Wrong!

Bitcoin has certainly gotten its fair share of attention this year as it made its spectacular rise from around $1,000 per Bitcoin on January 1, 2017. Bitcoin ended 2017 at the incredible price of $14,150 per Bitcoin which means it returned a bit over 14 times the US dollars invested in it during the calendar year 2017.

You would think nothing could beat that kind of return, right? You would be wrong. Try this out for size. The seemingly lowly Stellar Lumens (XLM) left Bitcoin in its star dust from a return point of view in 2017. 

Starting the year out worth less than one cent per Lumen (actually about .0025 per Lumen), XLM ended 2017 at an amazing .36 per Lumen. Thirty six cents does not sound like much compared to $14,150 does it. Until you do the math and discover that XLM returned 144 times the US dollars invested in it during the calendar year 2017. Lets do the math:


Bitcoin (BTC): (see 2017 price range here)

Jan 1, 2017 - $1000 invested in Bitcoin equals about one Bitcoin. 

Dec. 31, 2017 - one Bitcoin equals $14,150 or 14+ times the amount invested on 1-1-17.

Stellar Lumens (XLM): (see 2017 price range here)

Jan 1, 2017 - $1000 invested in Stellar Lumens equals about 400,000 Lumens @ .0025 each.

Dec. 31, 2017 - 400,000 lumens equal $144,000 or 144 times the amount invested on 1-1-17 (@ .36 per Lumen). 


You heard that correctly, 144 times the initial investment on 1-1-17. Stellar Lumens managed to generate that unbelievable return while also substantially increasing the number of lumens during the year as well. 

This resulted in Stellar Lumens ending the year by increasing its market cap a staggering 332 times over where it started in 2017  (it went from a market cap of 17 million to nearly 5.7 billion in one year)!!

So what caused Stellar Lumens to have this kind of spectacular return?

At least one factor was the partnership Stellar announced with IBM and KlickEx that we covered in this article here on the blog. So, while much of the world was focused on Bitcoin, another seemingly obscure cryptocurrency actually stole the show in 2017. Most people were unaware that even existed, but regular readers here were aware that Stellar exists and partnered with IBM and KlickEx in 2017.

So, when your friends ask you if you have heard about Bitcoin, ask them if they have heard about Stellar Lumens  :-)        

or        here is a thought question you might ask them:

            What number is larger $14,150  or $144,000?  :-)

Interesting footnote: One expert who is a reader here actually told me to think about looking into Stellar Lumens this summer after analyzing its potential (they were about .02 each at the time). It is experts like this that really help me out in understanding what is actually going on in the global payments system space. Cannot thank them enough!

Added notes: Someone pointed out to me that Ripple (XRP) also had an incredible year in 2017 going from .006 per unit to 2.30 per unit (383 times the price it was on 1-1-2017). That is certainly worth pointing out as well. 

Also, I have had several people ask me to predict future prices for these cryptocurrencies. I don't even try to do that. I only know they will probably continue to be very volatile. For full disclosure, I do not own any Bitcoin, Stellar Lumens, or any other cryptocurrency. I simply try to cover the space as part of what I try to follow for this blog. Especially anything that may impact central banks which is why I am following Stellar and its partnership with IBM and KlickEx.


  1. So where does it go from here? Seems there is limited upside due to the 100 billion coin cap...

    1. No predictions here. All the cryptocurrencies are volatile of course. I am following this because IBM says this new payments system is "interoperable" with existing systems used by banks and central banks. So I am watching to see if any central banks adopt it. KlickEx CEO says to watch this space in the coming months and says this is the first deployment of a blockchain based system viable at the institutional level. It's actually live in the South Pacific now.

    2. Thanks Larry. I think it's also interesting that some former IBM'ers are launching a decentralized exchange, that will be based on the Stellar Lumens (XLR) platform. I know I've been frustrated with the options available in the US, hopefully this provides some much needed utility and optionality.

    3. Thanks for you comments and good points!