Could Bitcoin Be A Millionaire-Maker?
Bitcoin has been a top performer for its early investors. Is it too late to jump in?
As we write this, Bitcoin's price is trading at roughly $60,000 per coin. Could you turn a modest investment in Bitcoin today into a million dollars?
Let's find out.
A Million-Dollar Investment
Ordinarily, we'd see if a $10,000 investment in Bitcoin could turn into $1 million over time. But for this comparison, we are going to use Bitcoin's past performance as a benchmark. If you'd bought coins in Feb 2017 price of $1,000, and sold at their all-time high to date of $50,000, Your Bitcoin investment would be $500,000 worth. In other words, you'd have bought 20 coins in 2017 to be a millionaire today.
According to the Stock-to-Flow (S2F), a Bitcoin price prediction system, BTC/USD will reach $100,000 by December 2021. Analyst Mike McGlone from Bloomberg sets a goal of $70K in 2021 and $180K per Bitcoin in 2022.
Citi analysts predict the price of Bitcoin at the level of $300,000 at the very end of 2021. Also, Citigroup told its institutional clients that it sees the potential for the price of Bitcoin to rise as high as $318,000 by the end of 2021.
Cryptocurrency is indeed the epitome of new money. No matter what all reasons you have for investing in blockchain, it is to secure a wealthy future at the end of the day. With the wave of new and more advanced digital currencies hitting the market, investors still need to hear whether Bitcoin could be a millionaire-maker?
Once a king, always a king. Bitcoin, the 'king of cryptocurrencies,' is indeed rallying to more heights. There are just over 2.5 million Bitcoins left to be mined out. Being one of the most highly traded cryptocurrencies and assuring liquidity in the short term, Bitcoin is always a significant option, shining on the investor's radar. With almost 61% share in the total crypto market cap, Bitcoin could be your golden gate to a millionaire's future. The question is can Bitcoin keep up its growth in the coming future too?
Where Does Bitcoin Price Stand Today
Before getting to the perennial question, could Bitcoin be a millionaire-maker? It is best to see what Bitcoin has in the pipeline this year and in the foreseeable future. First is its unstoppable growth, with an all-time high rate of $50,341.10 on February 16, 2021 seems like the year where Bitcoin is going to grow into mythic heights. As of writing, BTC is constantly flirting with the $50,000 psychological level.
Even today, Bitcoin leads the pack of cryptocurrencies as one of the best cryptos with a high market capitalization, user-base, and popularity. The Bitcoin price has rallied from $30,300 to $48,500 since January 28 and has gained almost $18,200 in its overall valuation. The coin has a bright future and is here to stay for a while with investments from all those big guns like PayPal, Square, and Tesla.
What All Does Bitcoin Offer?
Today many institutional investors and companies are also buying Bitcoin and investing a good part of their fortune in the crypto market. For instance, Michael Saylor, the founder, and CEO of MicroStrategy, has invested a large amount, saying that they are betting their company's future on Bitcoin. His company has borrowed almost $650 million on a 5-year bond, intending to get deep into the crypto market in the future. Similarly, Tesla also made a $1.5 billion Bitcoin investment which has fuelled this latest rally.
The Bitcoin ecosystem is undergoing several changes with the use of the Lightning Network. The Lightning Network, which depends on the blockchain's underlying technology, uses the native smart-contract scripting language, which allows high scalability and instant transactions. With this network's use, Bitcoin's implementation in decentralized applications and e-commerce platforms will be seamless and fast.
Apart from online trading, Bitcoin is now increasingly used as a medium of exchange worldwide. There are almost 500 Bitcoin ATMs with more than 15,100 businesses accepting Bitcoin as a payment mode worldwide. With Bitcoin games, payments for private flights like Privatefly's Bitcoin jet account, and several other technological advancements, Bitcoin is spreading its branches all along. This helps investors clear the fog around as Bitcoin is here to rise and soar to highs for quite a long time.
Read More: Why Bitcoin Is Going To Explode In 2021
So, Could Bitcoin Be A Millionaire-Maker?
With such a bullish run, Bitcoin could certainly mint more than a few millionaires over time. Considering the market trends, Bitcoin is definitely the best investment option and is indeed a Millionaire maker concerning other available options. But the crypto market is prone to sudden changes, and a risk management strategy is always a good option.
Bitcoin never goes out of fashion. It will always remain the first and one of the best cryptocurrencies that can kickstart your investment journey. It doesn't mean that Bitcoin's journey was smooth and steady. It did have a rollercoaster ride in the market. Bitcoin's price hit a high of almost $20,000 in December 2017, which was followed by a total collapse in 2018.
Until today, Bitcoin's price has rallied and surged to over $40,000 by January 2021. Today, the market capitalization of Bitcoin is almost $1 trillion, accounting for more than 69% of the whole cryptocurrency market.
With the approval of the first North American BTC ETF product by the Canadian securities regulator, Bitcoin is likely going to invite more institutional investment. Plus, this may also trigger the SEC to approve Bitcoin ETFs in the United States.
The Bottom Line
Cryptocurrencies have opened the doors to the shining world of millionaire life for many investors and businesses. The crypto universe is indeed opaque and volatile, but with good capital savings, research, strategy, and a bit of trust, it's easy to break the code and enter the world of this lucrative business.
With all these speculations, trends, and market capitalizations, Bitcoin is here to stay as the first in investors' favourite list over the next few decades.
So, could Bitcoin be a millionaire-maker?
With the bullish ride that Bitcoin is currently on and all the technological advancements in the digital asset ecosystem, Bitcoin is a gold miner for investors to consider for the long haul.
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Virtual currencies are highly volatile. Your capital is at risk.