So you want to be a millionaire? When it comes to Bitcoin there are many reasons to believe that the cryptocurrency has the power to create massive wealth. Even small amounts of Bitcoin have made people incredibly wealthy. There are countless examples of Bitcoin millionaires which have occurred within the last 5-7 years.
Bitcoin Millionaires
Back in 2010, a Florida-based computer programmer by the name of Laszlo Hanyecz said he paid for a pizza with 10,000 Bitcoins that he had mined years ago. Today, that pizza would be worth $25 million.
The Guardian reported the case of Kristoffer Koch, a Norwegian who had purchased Bitcoin worth $26.60 roughly 7 years ago. Koch acquired a total of 5000 Bitcoins for his investment, which today would be worth $12.5 million.
And just last week, Cointelegraph talked about Erik Finman, who invested $1,000 in Bitcoin in 2011 when it was valued at $12. Finman now holds 403 Bitcoins which is worth $1.07 million. Oh, btw Erik Finman is only 18 years old.
You might be thinking that you've missed the boat and that there is no way anyone can get wealthy from Bitcoin when it is already around $2,500 dollars. I would argue that is wrong and in fact, the value of each coin is increasing faster. Take a look at the chart below.
Patient Zero
Wences Casares has been called the “patient zero” of Bitcoin collecting among Silicon Valley’s elite. He got Bill Gates (creator of Microsoft), Reid Hoffman (creator of Linkedin), and countless others into Bitcoin.
The Argentina-born Casares has founded an internet service provider, a video game company, and a bank, plus he sits on the board of PayPal. But it’s Bitcoin that Casares says he’s dedicating the rest of his life to, and he now runs a startup that stores bitcoin. At a dinner organized by the cryptocurrency policy group Coin Center in New York, Casares delivered the keynote speech, including the advice he doles out to people who ask him how to get into Bitcoin.
Casares advises to take 1% or less of what you own, buy bitcoin with it, and then forget about it for at least the next five years; ideally the next decade. “You either lose one percent of your net worth, which most people can take, or you make millions,” he told a room of cryptocurrency advocates at the Westin in Times Square.
Casares pegs the odds of Bitcoin failing completely and going to zero dollars at 20%. “If it fails, it will be worthless,” he says. “If it succeeds, in five to seven years it [one Bitcoin] will be worth more than a million dollars.” He puts the chances of success at greater than 50%.
Casares says he’s seen people who bought bitcoin at cheap prices—as low as $13—lose out because they tried to trade their way to profits, while those who bought at high prices have done “spectacularly well” by simply buying and holding.
Become a Millionaire in 5 years with Bitcoin
The take away from Casares and from the millionaire examples above is to starting accumulating Bitcoin and hold them for the long run. It is not too late to invest, simply accumulate what you can and keep it for the next 5 years. The more you can accumulate, the faster you can become a millionaire.
With Bitcoin's price going up exponentially, a conservative estimate of Bitcoin's price is $100,000 for each coin within 5 years. That means all you need is to have 10 Bitcoins to be a millionaire. Remember this is a conservative estimate. If Bitcoin rises even faster say to $250,000 for each coin then all you need is 4 Bitcoins to become a millionaire.
Even though we can't predict the future, the moral here is that everyone should have some exposure to cryptocurrencies, particularly Bitcoin. As the old saying goes, "luck favors the bold." No other investment such as 401k, stocks, real estate can net you such a massive fortune with such a small investment and time. And it doesn't matter if you are 12 years old or 80, it's never too early or late to start.