In the history of Bitcoin, over 15 years, it has created multiple millionaires. The approximate number as revealed from the blockchain data of Glassnode, a blockchain analytics platform, is roughly 115,000 investors with a balance above $1 million today.
However, the question is whether you can become the next millionaire with Bitcoin investment. If you consider Bitcoin prices over the 15 years, you will find that the maximum gain was made in the early years. Data shows that the period from 2009 to 2012 the original cryptocurrency jumped from less than a penny to more than $5 million. This jump indicated a staggering 710,000% increase from the initial value. At that time $75 was enough to make you a millionaire since the current Bitcoin trading value hovers around $65,000.
According to experts, even if the trend of explosive returns on investment is gone now, it is still possible for original cryptocurrency to make millionaires. Some complex theories can analyze the ability of Bitcoin to produce future millionaires.
The Halving Phenomenon
The halving phenomenon is a key element in understanding and analyzing Bitcoins’ performance. The halving takes place every four years and it reduces the inflation rate of Bitcoin by half and helps break Bitcoin’s existence into natural cycles. It has been observed by Bitcoin analyst Willy Woo that investors who hold their Bitcoin for this four-year halving period have never run in losses. It gains them 30% in return annually for four years. Even if you buy Bitcoins at the peak of a bull market you will gain around 30% if you hold your Bitcoins for four years.
However, to become a millionaire, considering this 30% annual return, you need to invest at least $85,500 annually for five years. This investment amount reduces over time. After 10 years, the amount becomes $18,250 per year, and after 20 years; the amount will get down to $1,225 annually.
On the other hand, if you consider the larger picture beyond the four years Bitcoin’s average annual return is 170%. With time the investment amount reduces considerably.
What Opportunities You Have Today With Bitcoin Investment?
Even though the past trajectory provides a bright picture, it does not guarantee future positive results. Investors need to understand the complex supply and demand dynamics of Bitcoin to successfully navigate the share market. According to experts, the value of Bitcoin revolves around 21 million, and with the reduction of Bitcoin’s insurance rate through halving, the supply and demand trends tend to favor price appreciation over time. Even though the short-term fluctuations may influence prices in the larger picture the value of Bitcoin depends on scarcity and utility. With every halving, there are sustained price growth trajectories that enhance the chances of investors turning into millionaires.
Whether to Invest $ 500 or $ 1000 in Bitcoin at Present?
According to a recent analysis by the Motley Fool Stock Advisor analyst team, their list of the top 10 Best stocks list does not include Bitcoin. However, the top 10 stocks offer massive returns in the upcoming years.
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