Is Owning 1 Bitcoin Enough to Get Rich?
Crypto Influencer Lark Davis posted an interesting question asking his followers if owning 1 Bitcoin was enough to get rich.
I think owning 1 Bitcoin will make you very rich in the long run. Let’s discuss why owning just 1 BTC will build generational wealth for you and your family.
The Case for Owning 1 Bitcoin
New Bitcoiners often choose owning 1 Bitcoin is the ultimate goal when getting started as a crypto investor. There are several reasons why becoming a Bitcoin wholecoiner is a great starting point for newbies.
Accessibility for new Bitcoin Investors
Bitcoin offers an easy way to save money and acquire wealth due to its simplicity and fixed supply of 21 million coins. You don’t have to live in a 1st world country or be born with a silver spoon in your mouth to join the Bitcoin network.
Bitcoin’s fractional units of 100 million Satoshis per 1 BTC makes it simple to keep track of your progress towards 1 whole Bitcoin and stay motivated along your journey.
Bitcoin’s lower barrier to entry makes it more attractive to most investors who don’t necessarily have enough money to invest in expensive stocks like Tesla (TSLA), Apple (APPL), or Nvidia (NVDA).
While traditional investments are mostly reserved for upper middle class and wealthy investors, you can start buying Bitcoin no matter your background, race, or nationality.
Potential for Massive BTC Gains
It’s exciting to imagine Bitcoin breaking the 100k barrier and increasing in value in the future as more people understand how fiat currencies cause price inflation and move towards its intrinsic value of zero in the long run.
Since inception, Bitcoin’s CAGR is over 100% meaning early Bitcoin investors double their purchasing power in US dollars every year they HODL. If historical price trends continue then Bitcoin could hit $1 million by 2030 and possibly $1 billion by 2040.
This is because Bitcoin’s scarce supply and halving events create a supply shock every 4 years that causes the BTC price to soar in value.
Diversification from Stocks, Bonds, ETFs, and Real Estate
Owning 1 BTC helps you diversify your investment portfolio away from fiat-based assets such as stocks, bonds, real estate, and ETFs. Real Estate is a very stable asset class, but annual returns are between 8 to 10% over the long run plus real estate isn’t a very liquid asset.
Building a balanced investment portfolio with 1 BTC gives you a strong hedge against other asset classes in case they underperform or go bankrupt.
Risk Factors to Consider Before Owning 1 BTC
On the flip side, owning 1 Bitcoin exposes you to some potential risk factors that could blow up your crypto portfolio and leave you at a loss for words.
High Volatilaty and Risk
Bitcoin is a volatile asset that soars and crashes in value within a moment’s notice. It’s not unusual to wake up in the morning and realize your Bitcoin portfolio lost 2% or more in value while you slept.
Since Bitcoin trades 24/7, you will experience huge price swings during various periods of volatility including major news events, rumor leaks, buy/sell disclosures from prominent investors, and even social media posts from influencers like Elon Musk.
You can lose money in Bitcoin in a short period of time if the crypto market sells off and investors dump their holdings. I recommend viewing Bitcoin as a savings account to prevent many any long term investment mistakes due to short term thinking.
Lack of Practical Utility
Right now, Bitcoin doesn’t have much practical use other than investors who trade Bitcoin futures and options or speculate on higher BTC prices.
Most brick and mortar stores don’t accept Bitcoin and you cannot easily make purchases online using Bitcoin. Chances are few people in your social circle or workplace own even just 0.1 BTC so it’s difficult to buy and sell goods using BTC at the moment.
Many crypto haters view Bitcoin as a “scam” or “ponzi scheme”, which hurts the ability to transact in satoshis.
Technological and Security Concerns
Finally, Bitcoin is susceptible to scams and hackers who prey on vulnerable crypto investors in order to steal their BTC holdings. The FTX collapse is an example of how fragile Bitcoin storage can be to newbies who don’t know about cold storage and offline hardware wallets.
It’s vital to educate yourself on proper Bitcoin storage and security measures to protect yourself from hackers.
Alternatives to Owning 1 Bitcoin
Can’t afford to own 1 Bitcoin? There are several alternatives available to crpypto investors who want to buy Bitcoin slowly over time but cannot purchase 1 BTC.
Fractional Bitcoin Ownership
Consider owning a fraction of 1 BTC if you don’t have enough money or worry about some of the risk factors mentioned above. Crypto exchanges allow you to purchase Bitcoin starting with as little as $10 and store your holdings online free of charge.
You benefit from holding some BTC but miss out on explosive gains by not owning at least 1 BTC.
Diversification into Altcoins
Research altcoin trading to grow your portfolio if you don’t have enough oney to invest in 1 Bitcoin. New crypto projects launch every month and offer massive returns if you buy them early and sell into the hype.
4 Reasons Why I’m Working Towards Owning 1 Bitcoin
To wrap up this blog post, I want to give you some compelling reasons to pursue the goal of owning at least 1 BTC.
Bitcoin is Rare and There Aren’t Enough Coins for Everyone to Own 1
With such a small supply of just 21 million coins, Bitcoin is rare and cannot be owned by just anyone. The global population sits at over 8 billion so most people will never obtain 1 BTC. Owning 1 BTC is a true sign of wealth in the 21st century digital landscape.
Owning 1 Bitcoin Could Make You A Millionaire Before 2030
Bitcoin continues to surge in price as the supply of BTC mined decreases every 4 years. It’s possible that Bitcoin could be worth over $1 million before the decade is over. That would make you very wealthy no matter where you live.
Increase Your Purchasing Power Without Working More Hours
Most people start working more hours to increase their purchasing power but that doesn’t work if inflation gets out of control. The Fed continues raising interest rates to control inflation but they don’t mention that inflation is a feature of the current global monetary system. Printing more fiat currencies makes everything more expensive.
In contrast, Bitcoin maintains a low annual inflation rate that decreases every 4 years. You will increase your purchasing power without working more hours by simply owning 1 Bitcoin.
Owning 1 Bitcoin Could Make You Super Rich in The Long Run
Asset managers like Fidelity have high Bitcoin price targets of $100 million over the next 15 years. Major institutions and asset management firms will continue piling into Bitcoin and driving the price up.
If you want to guarantee yourself a nest egg in the future then owning Bitcoin could be the easiest way to do so!
