What is asset appreciation?

It is the increase of an asset’s value over time. If you bought one Bitcoin at $1,000 in 2013 and its value increased over eight years to $42,000, the asset has appreciated by 4,100%. True story. The opposite of asset appreciation is asset depreciation, where your investment loses value over time. A vehicle is a classic example of a depreciating asset, as it loses value the second the tyres hit the tarmac outside the showroom.

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