When Bitcoin first came out in 2009, a lot of people had never heard of it. Bitcoin would have been a far greater gamble than it is now, even if you had purchased it ten years ago. At the time, not many considered it an investment. Fewer people still anticipated that the cryptocurrency's grandfather would reach $70,000 in 2024.
If you are thinking of buying crypto, don't get dragged into "if only." The most important question is what it might do next and how it compares with other investments.
Is it Too Late to Buy Bitcoin?
The remarkable price performance of Bitcoin thus far is undeniable, even for the most ardent crypto skeptic. In the last ten years, it has increased by more than 15,000. The short answer to the question of whether you've missed the boat is that it's doubtful that you'll see another 15,000% gain in the upcoming ten years.
On the other hand, if you believe an asset will do well and it aligns with your financial objectives, it's never too late to purchase it. There are a few warnings. To begin with, cryptocurrencies are erratic. There aren't many investor protections because it's a relatively new asset. Riskier investments have the potential to yield enormous profits, but they can also lose all of their value. Make sure you are prepared to withstand some significant price fluctuations and are aware of the hazards.
How you purchase and store Bitcoin is another factor to take into account. Platform failure and hacking are both serious threats, as we have witnessed in recent years. Seek trustworthy cryptocurrency brokerages and exchanges, like Robinhood, that will store your funds offline in a process called cold storage.
Can Bitcoin Still Contribute to Making You a Millionaire?
Several things must come together for someone to become a millionaire. These include the amount and frequency of your investments, the duration of your money's investment, and the performance of your investments. Reaching $1 million is easier with a $500,000 investment than a $1,000 one.
To keep things simple, suppose you purchased $10,000 worth of Bitcoin. We'll also presume that you can't take any interest in it. To reach $1 million, the price would have to rise 100 times. Bitcoin is currently selling at about $65,000 as I write this. Thus, we're discussing a price tag of $6.5 million. It's a difficult task.
Much depends on your opinion of what makes Bitcoin useful right now and what it might do in the future. It is viewed by some as a form of digital gold that protects against inflation. Others believe it might become the internet's next money.
By 2030, Bitcoin might be valued at least $1 million, according to ARK Invest. This is in part because analysts believe it will disrupt the worldwide money transfer market. Approximately fifteen years after its inception, proponents maintain that Bitcoin is here to stay. However, there are still a lot of people who are against Bitcoin. They contend that it lacks inherent worth and is too erratic to serve as a gold-like store of value.
Bitcoin Is Not The Only Way To Become A Millionaire
There are numerous ways to become a millionaire. Some folks purchased Bitcoin to get there. Some inherited huge fortunes or won the lottery. Many others adopted the methodical strategy of investing a portion of their monthly paycheck. For most of us, that last path is more certain and more attainable, but there are never any promises.
