Janice R. Andrews
In its fifteen years of existence, Bitcoin (CRYPTO: BTC) has created thousands of billionaires. Actually, we are certain of their actual number. A blockchain analytics startup called Glassnode’s data indicates that there are currently about 104,000 Bitcoin wallets valued at more than $1 million. But, it’s normal to believe that your chances of getting into this elite group have diminished after seeing such a sharp rise over time. What if I told you, nevertheless, that Bitcoin still has the potential to create new millionaires?
Reasons Bitcoin Is the Best Investment
In other words, if the price of Bitcoin continues to rise, it will continue to create millionaires. It’s not complicated, but there’s a more subtle mechanism at work here that makes Bitcoin especially well-suited to continue rising the way it has for the past fifteen years. The limited quantity of Bitcoin is one of the important variables in this dynamic. Because there is a limit of 21 million coins in circulation, the value of Bitcoin is likely to increase over time due to basic supply and demand dynamics.
Because of its restricted maximum, the price of bitcoin is expected to rise as demand grows. As of right now, 19.6 million Bitcoins are in use; the final 1.4 million will be added to the market gradually until 2140. The sluggish and gradual issuance of new coins guarantees the scarcity of Bitcoin. Because there is less supply than there is demand, prices should rise as long as it does.
In contrast, splits can occur with other assets such as stocks, increasing the number of shares and potentially diluting their value. As more gold is found and extracted, the value of gold, another well-liked store of value, decreases. But you cannot dilute Bitcoin in this way. Because of its distributed and decentralized network, which guarantees that there will only ever be 21 million Bitcoins, it is the perfect asset for producing wealth. This system does not allow for inflation that could change the game.
Prospects for Investors to Think About
The potential for Bitcoin to create new billionaires is contingent upon two factors: the amount invested and the potential growth of Bitcoin. One needs to invest less money to become a millionaire as Bitcoin rises in value. The fundamental query here is the maximum height to which Bitcoin can ascend. Although this is unknown, a number of studies and assessments point to the possibility that Bitcoin may someday be valued at more than $1 million per coin.
Giovanni Santostasi, an astronomer, developed the Bitcoin Power Law Theory, which is one of my favorite models for projecting the price of Bitcoin in the future. A statistical theory known as the Power Law describes a variety of natural phenomena, including the size of cities, the number of species in an environment, and the distribution of wealth. When the Power Law is applied to Bitcoin, it fits surprisingly well because, unlike fiat currencies, Bitcoin displays properties of a natural network.
The Power Law can be used to evaluate Bitcoin using its user and transaction characteristics, just as it is applied to natural phenomena like as the distribution of city sizes or the prevalence of species. In order to track the rise in the price of Bitcoin, this model counts the number of Bitcoin addresses and transactions. According to this prediction, Bitcoin might increase in value to over $4.5 million by 2040 and achieve a fair market value of over $1 million by 2032. This methodology demonstrates how network effects propel the rise of Bitcoin and provides a solid foundation for comprehending its long-term price prospects.
An more significant analysis is provided by ARK Invest. ARK Invest predicts that when institutional investors start to commit more money to Bitcoin, it may reach $3.8 million by 2030 after looking at a number of situations and variables. Even while these forecasts may sound dramatic, it’s hard to deny that Bitcoin has continuously exceeded predictions. Few people could have guessed in 2015 that Bitcoin, which was selling for just $1,000 at the time, would rise to almost $70,000 in just ten years. Bitcoin has a history of surprising the markets, and it is expected to do so for decades to come, despite the uncertain nature of the future.
The Requirements to Become a Millionaire
Let’s keep things easy. To become a millionaire, you would need to own an entire Bitcoin if it were to reach $1 million. You would require half of a Bitcoin if it were to hit $2 million. You would require a quarter of a Bitcoin, or around $13,000 in today’s currency, to reach $4 million.
Although no model is perfect and previous performance does not guarantee future results, Bitcoin’s distinct qualities make it a viable contender for continuing price appreciation. Compared to many other assets, its limited supply, rising demand, and expanding acceptance make a strong argument for its long-term growth.
Even though Bitcoin isn’t a get-rich-quick plan, careful investors have found it to be a profitable asset. Bitcoin has a bright future ahead of it, with plenty of room to create new millionaires. With its unique qualities as a limited, decentralized, and widely acknowledged form of digital gold, Bitcoin is positioned to be a potential billionaire maker for the foreseeable future. Its growth narrative is far from done.
