Will Bitcoin Investment Continue Creating Millionaires?

Will Bitcoin investment continue creating millionaires? As of now, there are hundreds of thousands of people who have made millions from crypto, especially from Bitcoin.

Within just a quarter of a year’s time, this number has increased from a meager 20/25 thousand which shows the wide acceptance, awareness, and popularity of Bitcoin among people comprising both the merchants and the general public.

You may wonder what could be the possible reason for such popularity and whether or not this trend will continue in the years to come.

Well, this is the right place to be to know the answers to all your questions and a little bit more about Bitcoin and its potential.

This will in turn help you to decide whether or not you should also invest in Bitcoin and expect to become a millionaire like others or look for somewhere else.

Well, the biggest reason for Bitcoin investment being so popular among the crypto investors is its high volatility.

This causes the price of Bitcoin to rise significantly.

In addition to that, there are also a few other external factors that cause the price of Bitcoin to change often dramatically.

For example, the announcement of Elon Musk or Tesla buying huge amounts of Bitcoin created a frenzy among the people.

This is considered to be a significant move by the people because they think that this will encourage other companies to put in more of their unused cash into Bitcoin.

This will cause a further increase in the price of Bitcoin which, in turn, will spur an increase in the number of Bitcoin investors taking the six figure number to seven figures.

The million dollar question is: will this trend last, and if so, for how long?

Will Bitcoin Investment Continue Creating More Millionaires?

It is pretty hard to say exactly how many people now own Bitcoin worth one million dollars or more.

It is easy to count the number of accounts that have a million dollar worth Bitcoin because the amount in each account is public data but who owns them is not.

Therefore, if one person has several such accounts, it makes it quite impossible to count the number of millionaires as such.

Therefore, it is safe to say that there are about 100,000 Bitcoin accounts that have one million dollar or more worth of Bitcoin in them as of now as mentioned earlier.

And, out of them, there are about ten thousand accounts that have more than $10 million worth of Bitcoin in them.

On the other hand, there are lots of accounts that have less than $100 Bitcoin value in them.

Therefore, there is a wide difference between the number of millionaires and non-millionaires.

Will these smaller accounts also have Bitcoin worth a million dollars is hard to tell.

The primary reason behind this is that the price of Bitcoin may rise by thousands of dollars in one instant and fall by the same margin, if not more, in the next.

Therefore, with such jumps in prices, the numbers of millionaires will also jump quite a bit and therefore it is hard to say whether or not Bitcoin will continue creating millionaires.

However, Ethereum and other coins are also prone to such wild price swings but Bitcoin is still the most favored one to invest in because its distribution of wealth is more even as compared to the US dollar.

Still, it is not easy to figure out the number of Bitcoin millionaires.

Therefore, as it is difficult to say how many Bitcoin millionaires there are and whether or not this particular coin will continue to create more new millionaires, in order to understand it in the best way possible, you will need to understand a few other things first.

Defining Bitcoin Millionaire

The first thing to know is how exactly you can define a Bitcoin millionaire.

It will include those people who own Bitcoin worth $1 million as well as those who own two, three, and four and till ninety-nine million dollars.

Now in that sense, frankly speaking, those who own one hundred million or more are also millionaires though they are referred to as billionaires.

Therefore, to avoid such discrepancies, it is safe for you to focus on those accounts that have one million dollars worth Bitcoin at least.

This will make things a bit simpler since Bitcoin accounts are a public ledger and it is easy to nail down the number of addresses that have this much amount in them.

However, as said earlier, you should also keep in mind the fact that one person may hold a number of Bitcoin accounts worth one or more million dollars.

There can also be a number of shared Bitcoin wallets held by custodians and exchanges, multi-signature wallets, and deterministic wallets.

Therefore, it can be a bit misleading if the calculation is done on one address – one dollar assumption.

Then there comes another issue – the price swings. If the current price of Bitcoin is around $40,000 then anyone owning 25 coins will be a millionaire.

On the other hand, if the price increases up to $50,000, then only twenty such coins owned by anyone would make the person a millionaire.

And, if the price falls down to $30,000, one will need to hold more than 33 coins to be considered a millionaire. Got the point?

Determining a millionaire is also very difficult due to the volatility aspect of Bitcoin.

According to some available data, the average daily volatility of Bitcoin for a period of 60 days is supposed to be a bit more than 5%, give or take a few points according to other survey reports due to accuracy in point of decimals.

This is the percentage by which the price of Bitcoin fluctuates in two month’s time.

This volatility will surely change the number of Bitcoin millionaires either by increasing or by lowering the threshold needed to qualify.

Is It a Solid Bet

Now, for the primary part of this article – whether Bitcoin will continue to create more millionaires – you will need to first understand whether or not this is actually a solid bet.

And, in that regard you will need to consider the facts and figures of the millennial since they are the ones who make the major part of the total number of crypto investors.

Most of the crypto investors who have become rich in their young adulthood consider Bitcoin to be a solid bet that offers high returns.

However, not all of the 80% plus millennial crypto investors think the same.

This is because more than half of them have their investments in different types of crypto coins including Bitcoin and a considerable part of the young adults have at least three-quarters of their wealth invested in various other assets based on blockchain.

Therefore, it cannot be said convincingly that Bitcoin and Bitcoin only is the solid bet though most of the crypto whales and large organizations believe so.

Moreover,  the fact that a major part of the average crypto investors either intend to hold their investments steady or reduce them but not increase them certainly, prove this point more strongly.

Point of View of Millennial

The fact that most of the millennial own crypto or have made investments in blockchain based assets proves their point of view.

It is that they believe in the prospects of crypto and are pretty comfortable with the volatility, price swings and risks involved in such investments.

In fact, survey reports show that they are interested to invest more in crypto in 2022.

Typically, if you consider the millennial in particular, they have been putting their money-making eggs into crypto and have made millions in two specific ways which groups them into two broad categories.

One of them is the ones who made millions directly by making small investments in crypto assets years ago from their own incomes.

They are actually the self-made millionaires who built their wealth from the higher returns offered by crypto.

And, the other group is the one who have added them to their present wealth primarily from inheritance.

According to a few survey reports, more than 45% of all millennial millionaires have factored crypto inheritance to their existing wealth.

However, in spite of such popularity and interest in crypto among the young adults, it is not surprising that there is a notable decrease seen in the rates of investment in Bitcoin or crypto from the older millionaires.

It seems that they are losing interest in the blockchain digital assets and that is why there is such a departure noticed among them in terms of crypto or Bitcoin investments.

Add to that, if you consider the younger generation, the same effect is noticed with less than one-fourth of Gen X and 4% of baby boomers having invested in crypto as of now in spite of being millionaires.

These facts and figures are quite worrying because it indicates a wide divide in crypto investments and this is growing continuously especially among the millionaires.

This effect is noticed across all age groups save the millennial.

Though the specific reasons for such an effect on the young adults and Gen X are not very clear as of now, as for the millionaires belonging to the older generations it is quite understandable.

They are pretty doubtful about investing much of their saved money in crypto.

This is in spite of the fact that Bitcoin is considered to be that particular asset class that has the potential to offer approximately 230% annualized returns which is much more in comparison to any other asset class.

Therefore, the indications are pretty clear.

So, it is pretty hard to say whether Bitcoin will continue creating millionaires in the future due to its price swings and decreasing interest among the older millionaires.

It is only time that can tell whether Bitcoin investment will be truly a money milling machine for all or it will only be the ‘fortune favoring the brave’ or ‘the folly of youth’ investment type.

Relying on Price Rallies

Bitcoin investors especially have to rely extensively on the price rallies if they want to make millions from their investments.

Now, the question is can they really do so in order to speculate the price correctly?

Well, all the numbers regarding Bitcoin seem to be pretty alluring to any investor but it is extremely important for them to be cautious when they put their money in it.

This is because Bitcoin, in particular, seems to be much more volatile and unstable in comparison to other crypto coins available in the market as of now.

Yes, it is true that investing in any digital token is more of a futuristic investment model that depends on speculation primarily and has the ability to transform the entire financial ecosystem but Bitcoin in particular seems to be both more profitable and risky at the same time.

Bitcoin can pull you off from your seat anytime which is why it is advised that you do not invest more than 5% of your total savings in it.

On the other hand, it is also the leading digital coin and payment system.

It is the foundation stone of the crypto market and is also the most successful crypto coin. Therefore, you are in a dilemma.

The price rally of Bitcoin was awfully notable since 2017 and later on in 2020 it gained more traction from several people as a reliable asset to invest in.

In 2021, Bitcoin witnessed record highs in its price but it still is not moving in a linear path.

The primary reason for it is that it faced some major hindrances in its growth when it was accused of affecting the environment adversely.

It consumes a high amount of power while mining which is considered to be a significant disadvantage of it.

This has forced Elon Musk to close the doors of Tesla for Bitcoin payments.

The situation was further worsened when China banned the use of cryptocurrencies in the country.

This caused the price of Bitcoin to fall further significantly.

However, the situation was saved from going out of control with the introduction of Bitcoin ETFs or Exchange Traded Funds in the New York Stock Exchange.

This put Bitcoin back on the track and the price of the coin again crossed the $60,000 mark.

Not only that, the reason for it was also the announcement of Wall Street banks including Well Fargo and Goldman Sachs about their plans to hire crypto professionals.

Such price rallies have enabled the investors to cash out a good amount of money off and on from Bitcoin.

Prices of other crypto coins such as Ethereum and even Shiba Inu have also rallied significantly which once again is the reason for the people who cannot afford to invest in a pricey Bitcoin shifting towards these coins.

Ethereum, in particular, has emerged to be the first successful Altcoin out of Bitcoin and has also experienced massive price surges especially in the last quarter of 2021.

This surprised as well as attracted more crypto and Bitcoin investors towards it.

But, there is nothing to be surprised about such behavior of Ethereum because it is known to follow the footsteps of Bitcoin right from its day of launch till date.

Whenever the price of Bitcoin increased, that of Ethereum followed suit and, on the other hand, the price of it fell significantly when the price of Bitcoin experienced a downfall.

However, this time, Ethereum seemed to have broken the shackles and acted on its own when Bitcoin was not experiencing a price rally.

According to the experts, the main reason for such unusual behavior of Ethereum may be due to the fact that there is a notable change in its ecosystem.

It is the introduction of Ethereum 2.0 that will expedite the transaction process as well as reduce the transaction fees.

Another significant reason for the unusual surge in the price of Ethereum is its announcement about the Non-Fungible Token or NFT and Metaverse debut.

However, in the meantime, several existing coins will be burned off every time a coin is mined causing an inflammation.

And, as for Shiba Inu, it has gained a lot of traction from the crypto investors during the end of last year.

This meme coin is based on Ethereum and has experienced an increase in price by over 800% when crypto enthusiasts appealed to enroll it on the Robinhood platform.

However, the most surprising thing to happen is the coin taking over Dogecoin to hold a higher position in the list of popularity and potential.

People cashed out heavily due to its huge price rally even by investing a small amount in this particular coin.

Therefore, when you see some new crypto coins such as Shiba Inu launched into the market out of the blue and at a time when you did not expect it at all, do not ignore them completely.

If you do so, there is a high chance that you may wash your hands off from making big profits eventually.

If you consider the stats regarding their price rallies last year, it will be clear to you.

Last year, while the price of Bitcoin has increased by about 400%, that of Ethereum has surged up by nearly 1500% and of other meme coins like Shiba Inu and Dogecoin by more than 800% and 19000% respectively.

Therefore, when you have such impressive numbers and alluring prospects in front of you, it is very natural that you will start to believe that every crypto coin has the ability to offer benefits and an opportunity to the investors to make millions from the crypto space.

All these coins proved to be an equally productive alternative to Bitcoin for investors who want to make millions from crypto.

However, you must keep in mind that all such changes are subject to changes in the market trends.

That is why you are advised to do proper research. Your due diligence is very important to know the market trends and analyze the prospects before you choose to invest in any particular crypto coin, even if it is Bitcoin.

Will It Last

The above facts and information, especially the surges in prices, indicate that the days of Bitcoin reigning supreme in the crypto market and turning the small investors into millionaires are numbered.

It is pretty doubtful that the Bitcoin millionaires will be able to keep up their profile for a long period of time.

More and more people are putting in their money on different types of crypto coins which has resulted in an increase in their demand and price both.

With so many different alternative options available to the investors now apart from Bitcoin to become a millionaire, all they have to do now is time their investments right.

However, mind you, it is not as easy as it sounds to be.

It is difficult because Bitcoin seems to be extremely tempting and prospective. It is the pioneer crypto and is pretty established as well.

It has a pretty long track record to prove its potential as a blockchain based and decentralized investment model.

Therefore, it is hard to ignore completely.

Moreover, it is also very difficult to choose an alternative because there has been a flurry of other digital coins in the crypto market following the success of Bitcoin.

It includes the Altcoins, stable coins, and meme coins that are doing equally good in the crypto space.

In fact, there are more than 10,000 different types of crypto coins currently in circulation and use in the market.

However, not all of these different crypto coins come with the potential to make a crypto investor a millionaire.

Therefore, you will need to do a thorough and proper research to find just the right kind of crypto coin to invest in if you want other than Bitcoin.

Therefore in the end it can be safely said that there is no reason to believe that Bitcoin still rules and will continue to rule the crypto market and create more millionaires.

Ideally, you should always look for other options since the crypto space is ever changing and therefore will have something or the other to offer to you that is new and quite productive.

Conclusion

All these times if you believed that Bitcoin is the one and only crypto coin to invest in to become a millionaire, you will surely think again after reading this article. There are lots of other alternatives out there as well. All you need is a little research.