Over the course of its 15-year history, Bitcoin (CRYPTO: BTC) has made plenty of millionaires. In fact, data from the blockchain analytics platform Glassnode shows roughly 115,000 wallet addresses with a balance of more than $1 million today.
But what are the chances you could one day join this select group? For the patient and long-term investor, the answer might surprise you.
A quick glance at Bitcoin's price over the years shows that the most explosive gains were made in its early days. From 2009 to 2012, the world's original cryptocurrency jumped from less than a tenth of a penny to more than $5, an absurd 710,000% increase. With Bitcoin trading for around $65,000 today, an investment of just $75 when it was worth roughly $5 would have been good enough to make you a millionaire.
As surprising as it may sound, there is still plenty of opportunity for the world's original cryptocurrency to create millionaires, even if the days of it trading for less than $100, let alone $10,000, are likely gone. There are complex simulations and intricate theories that can be useful in capturing Bitcoin's future millionaire-making abilities, but some simple math can do the trick, too.
Bitcoin's performance is often analyzed in relation to its halvings. Occurring approximately every four years, these halvings reduce its inflation rate by half and serve as easy landmarks to break Bitcoin's existence into natural cycles.
One notable observation found by Bitcoin analyst Willy Woo is that holding Bitcoin for at least one halving cycle, or roughly four years, has never resulted in a negative return. Over this period, Bitcoin has shown an average annualized return of 30%. In other words, even if investors bought at the peak of a bull market, as long as they held for at least four years, they would eventually see a 30% annualized return.
For those considering #Bitcoin. Remember to hold for 4 years. It's never returned below 30% annualised for a 4 year investment, no matter how badly timed...BTC: 30-60%, 75% drawdownsSP500: 10%, 35% drawdownsReal Estate: 10%, 30%+ drawdownsVC Funds: 15%-27%, 10 year lock up
While this is a lower-bound scenario, we can use it as a baseline to show what it takes for investors to become Bitcoin millionaires. Assuming an annualized return of 30%, one would need to invest roughly $85,500 annually for five years to hit millionaire status. Over 10 years, this number falls to around $18,250. For a 20-year period, you would only need to invest a mere $1,225 per year.
If you expand your viewpoint beyond the four-year mark, the potential for wealth creation magnifies considerably. Considering Bitcoin's average annual return over its entire history (not just a four-year halving cycle) is roughly 170%, the timeline accelerates, and the required investment amount decreases significantly.
It's crucial to acknowledge that past performance doesn't guarantee future results. However, the fundamental numbers behind Bitcoin remain immutable. At its core, Bitcoin's value proposition revolves around one key figure: 21 million.
With a finite supply of 21 million Bitcoins and the ongoing reduction of Bitcoin's issuance rate through halvings, supply and demand dynamics increasingly favor price appreciation over time.
As investors, understanding and embracing these fundamental principles of supply and demand provide a solid foundation for navigating market volatility. While short-term fluctuations and speculative trends may influence prices, the long-term trajectory of Bitcoin's value is anchored in its scarcity and increasing utility. With each halving, the scale tips further toward sustained price growth, presenting a compelling opportunity for hopeful millionaires.
RJ Fulton has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
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Bitcoin has made many millionaires already, and you could be one, too. Over the course of its 15-year history, Bitcoin (CRYPTO: BTC) has made plenty of millionaires. In fact, data from the blockchain analytics platform Glassnode shows roughly 115,000 wallet addresses with a balance of more than $1 million today.
Over a long enough period of time, even a relatively small upfront investment could turn into $1 million or more. And, indeed, according to Henley & Partners' Crypto Wealth Report, there are more than 40,000 Bitcoin millionaires in the world right now.
For the third year running, Changpeng Zhao, founder and former CEO of crypto exchange Binance, is crypto's wealthiest person. Despite pleading guilty to U.S. money laundering charges in November, CZ, as he's known, is now worth an estimated $33 billion, up from $10.5 billion last year.
However, on a long enough timeframe owning 1 full Bitcoin certainly could be enough to make you rich. While they seem outlandish at first, there have been several predictions from prominent groups and people that see Bitcoin reaching a price of several million per coin within the next 10 to 20 years.
To become rich, you have to do your research, work with a financial advisor, follow specific markets and make trades at the right time. Also, you will need to invest in cryptocurrencies that go up in value, buy at low prices and sell at high prices.
It is possible to make $100 per day, but there is no guarantee or specific technique you can use to ensure it happens. Cryptocurrency trading, lending, staking, and investing all come with significant risks because it is such a volatile and unpredictable asset.
There are 88,200 crypto millionaires worldwide. 40,500 of these millionaires have amassed their fortune in Bitcoin (BTC). The number of global crypto owners reached 580 million by the end of 2023, according to Crypto.com.
The time it takes to make a profit in cryptocurrency can vary greatly depending on various factors, such as the investment strategy, market conditions, and the specific cryptocurrency being traded. Some investors may see profits in a matter of hours or days, while others may take months or even years to realize gains.
The FBI warns Americans against using cryptocurrency money transmitting services that are not registered as Money Services Businesses ( MSB ) according to United States federal law ( 31 U.S.C.
1 USD equals 0.000014 BTC. The current value of 1 United States Dollar is +0.94% against the exchange rate to BTC in the last 24 hours. The current Bitcoin market cap is $1.36T. Create a free Kraken account to instantly convert USD to BTC today.
A: Bitcoin ATMs allow you to sell Bitcoin in exchange for cash. You need to verify your identity, typically through a government-issued ID, phone number, and a picture. You then send Bitcoin to the ATM's wallet and receive cash equivalent. The transaction process can take around 10-20 minutes.
At the time he made those comments, the price of Bitcoin was around $35,000. So, 10 times from those levels would mean that Bitcoin could go as high as $350,000, Saylor said. If this is the case, you would need to own 2.86 BTC to become a millionaire.
One of the easiest ways to cash out your cryptocurrency or Bitcoin is to use a centralized exchange such as Coinbase. Coinbase has an easy-to-use “buy/sell” button and you can choose which cryptocurrency you want to sell and the amount.
While this is a lower-bound scenario, we can use it as a baseline to show what it takes for investors to become Bitcoin millionaires. Assuming an annualized return of 30%, one would need to invest roughly $85,500 annually for five years to hit millionaire status. Over 10 years, this number falls to around $18,250.
So, 10 times from those levels would mean that Bitcoin could go as high as $350,000, Saylor said. If this is the case, you would need to own 2.86 BTC to become a millionaire. It would cost around $190,000 today.
However, some experts have offered bold projections. Cathie Wood, the founder, chief executive officer, and chief investment officer of ARK Invest, believes that Bitcoin could be worth $1 million per coin before 2030, as adoption by institutional investors increases.
Investing $100 in Bitcoin can be profitable as long as you do it at the right time or make regular investments. Investing in Bitcoin offers high potential returns, liquidity, the prospect of being at the forefront of digital currency evolution, and a hedge against inflation due to its capped supply.
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