Since July 2010 (the earliest data available from coinmarketcap.com), Bitcoin has produced a ridiculous return of nearly 43,000,000%. That crushes the gains of both the S&P 500 and Nasdaq Composite Index by insanely wide margins. And it has no doubt made some early adopters extremely wealthy.
Even though Bitcoin has been around for about 14 years, I don't think it's too late to get in on the action. Right now, the price is 61% off its all-time high from November 2021, so there is some heightened pessimism around this top cryptocurrency. But can buying now help you become a millionaire?
Given enough time, I believe the answer is a resounding "yes."
Image source: Getty Images.
There is a clear need for Bitcoin
It's important to first take a step back and understand why Bitcoin is even needed in the world. Think about citizens dealing with corrupt governments (like Mexico's), or currencies that experience hyperinflation (like in Venezuela), or countries ravaged by war (like Afghanistan). The people in these places can't rely on the current financial systems that are in place. A decentralized form of money that can't be confiscated, that isn't controlled by anyone, and that can be stored on the internet or devices that connect to the web is extremely valuable in these types of situations.
In the U.S., skeptics would make the argument that there is no need for Bitcoin because we have a robust payments industry and developed capital markets. This misses the point that Bitcoin is a global network. Moreover, we take our working financial infrastructure for granted, while people in other countries struggle with a lack of basic banking services or stable currency.
Plus, Bitcoin does serve a need in the U.S. Some investors and institutions are keen on holding a portion of their wealth in the world's most valuable cryptocurrency. That's because Bitcoin has a fixed supply cap of 21 million, yet over the past decade, central banks around the world have pumped so much money into the economy to stimulate growth after the Great Recession and throughout the coronavirus pandemic. The more fiat money, or government-backed currency, that there is relative to Bitcoin, the better the prospects for the latter's price appreciation.
The staggering debt burden of the U.S., which will only be exacerbated by further increases of the national debt ceiling in the future, also tells me that we can't keep interest rates high for too long. This increases the odds of elevated levels of inflation for extended periods of time. Holding Bitcoin makes even more sense with this in mind.
Running the numbers
Bitcoin has a market cap of about $516 billion. But let's say that a decade from now, its entire value equals that of the total value of all the world's gold, or roughly $12.5 trillion. I don't think this scenario is out of the question. As more individuals, corporations, and governments learn about Bitcoin and its attractive properties, it's probable that they would at least store a small fraction of their investable assets or reserves in it.
This would mean that Bitcoin's price would rise about 25-fold between now and the summer of 2033. This performance would likely crush what investors could earn putting their money in the stock market (or any asset class, for that matter). This projection suggests that a $40,000 investment in Bitcoin today could make someone a millionaire in 10 years' time.
To be clear, there are a ton of risks to think about. The most pressing one is the threat of governments banning Bitcoin and other cryptocurrencies, making it illegal to buy and own these digital assets. That's something to always keep in mind. Additionally, Bitcoin simply might not be adopted as widely as many hope.
Bitcoin could reach that projected value in a much longer time frame, or maybe not at all. The range of outcomes is vast.
Nonetheless, the potential is certainly there for Bitcoin to make you a millionaire.
Neil Patel has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
FAQs
Right now, the price is 61% off its all-time high from November 2021, so there is some heightened pessimism around this top cryptocurrency. But can buying now help you become a millionaire? Given enough time, I believe the answer is a resounding "yes."
How much Bitcoin do I need to become a millionaire? ›
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.
Did anyone become a millionaire from Bitcoin? ›
Bitcoin's stratospheric rise since 2009 has created a surprising and diverse set of millionaires (and billionaires).
Can Bitcoin make you a billionaire? ›
While the chances of becoming a Bitcoin billionaire are unlikely (unless you happen to have $35 million hiding under your mattress at home), they are not impossible. According to the latest Crypto Wealth Report, there were six Bitcoin billionaires in the world at the end of 2023.
What does Motley Fool say about crypto? ›
That's potentially bad news for risk-on assets, and cryptocurrency is among the most risk-on of all. Until the Fed pivot actually happens and it cuts rates, investors should expect Bitcoin to wobble and lurch. But then, volatility is par for the course with crypto, even if it's Bitcoin, the bluest of blue-chip tokens.
What would 5000 in Bitcoin be worth today? ›
The current price of 5000 Bitcoin in US Dollar is 318.65M USD. The price is calculated based on rates on 35 exchanges and is continuously updated every few seconds.
How long will it take for Bitcoin to reach $1 million? ›
The institutions are knocking on Bitcoin's door. As previously mentioned, Wood has been quite vocal about her belief in Bitcoin. As early as 2022, she made headlines for claiming that Bitcoin had what it takes to reach more than $1 million by 2030.
What if I invested $1,000 in Bitcoin in 2010? ›
If you had bought $1,000 worth of bitcoin 10 years ago, it would have grown by 7,644% and be worth around $77,443 as of Feb.
How many people got rich off Bitcoin? ›
Up a level, there are 182 centi-millionaires, holding at least $100 million in cryptos, and there are 22 crypto billionaires. Bitcoin accounts for more than half of crypto-millionaires fortunes while 72 of the centi-millionaires and six of the crypto-billionaires made their fortunes from trading Bitcoin.
How many people own 1 full Bitcoin? ›
However, some estimates can be made based on blockchain data and surveys of Bitcoin holders. According to data from Bitinfocharts, as of March 2023, there are approximately 827,000 addresses that hold 1 bitcoin or more, representing around 4.5% of all addresses on the Bitcoin network.
List of Coins That Will Make You Rich This Year
- Basic Attention Token (BAT) – Rewards-based crypto browser with a $539 million market cap.
- Ethereum (ETH) – Market leader in smart contracts and DApps, #1 altcoin in the world.
- Binance (BNB) – Binance-backed utility token has a market cap of $89 billion.
Here are five ways you can cash out your crypto or Bitcoin.
- Use an exchange to sell crypto. ...
- Use your broker to sell crypto. ...
- Go with a peer-to-peer trade. ...
- Cash out at a Bitcoin ATM. ...
- Trade one crypto for another and then cash out. ...
- Bottom line.
Any talk of billionaires buying Bitcoin has to start with Michael Saylor, executive chairman and co-founder of MicroStrategy (MSTR -6.13%). The billionaire started aggressively buying Bitcoin back in mid-2020, and has been continually ramping up his company's Bitcoin holdings since then.
How much does a Bitcoin cost? ›
The live price of Bitcoin is $ 64,623.50 per (BTC / USD) with a current market cap of $ 1,272.30B USD. 24-hour trading volume is $ 24.60B USD. BTC to USD price is updated in real-time. Bitcoin is +0.2% in the last 24 hours with a circulating supply of 19.69M.
What is the safest Cryptocurrency? ›
For the most part, the rest can be interchanged and will likely shift up or down this list depending on their future development.
- 8) Polygon (MATIC) ...
- 7) Polkadot (DOT) ...
- 6) Cosmos (ATOM) ...
- 5) Chainlink (LINK) ...
- 4) Solana (SOL) ...
- 3) Cardano (ADA) ...
- 2) Ethereum (ETH) ...
- 1) Bitcoin (BTC) The most safe digital asset is Bitcoin.
Investment firms like Grayscale, BlackRock and Fidelity, are pouring billions of dollars into buying the volatile digital asset. In the last few weeks, these powerful institutions have become so called 'Bitcoin whales'. Because of Bitcoin's system there will only ever be 21 million bitcoins.
Can Bitcoin reach $10 million? ›
Analysts recently detailed a $10 million bitcoin price prediction from Tom Lee of Fundstrat Global Advisors. A resurfaced projection by Tom Lee, managing partner and head of research for Fundstrat Global Advisors, indicates that the bitcoin price can reach as high as $10 million within decades.
Will Bitcoin make it to $100,000? ›
In just 2024 alone, it's added $400 billion to its market and finds itself a measly 10% off of its all-time high of around $68,000. For years, investors have had their sights set on Bitcoin reaching a $100,000 price tag, and it finally looks like it could happen.
What are the odds of Bitcoin hitting $1 million? ›
Ark Invest CEO Cathie Wood in August, said that Bitcoin has the potential to surge into the six-figure range and possibly reach $1 million by 2030. In an exclusive interview with Benzinga, Wood reaffirmed her conviction that Bitcoin could achieve the $1 million mark within a timeframe of five to seven years.
How long will it take to get to 21 million Bitcoin? ›
It took only 15 years to mine the first 19.4 million Bitcoins, but it will take an estimated 115 more years to mine the remaining 1.6 million. This is in large part due to the halving cycle, which is expected to continue until the year 2140.
