Dreaming Of Becoming A Bitcoin Billionaire?

  • 3rd Feb'21
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We admit it or not, but we all want to become a billionaire. I mean come-on!, who do not want to have a hefty amount of money and spend those to fulfill their dreams. This desire gets multiplied manifolds whenever we read the journey of a billionaire.

Becoming a billionaire is everyone’s dream, but unfortunately, it only remains a dream for most of us. Well making money is not child’s play. Indeed some billionaires have got economic and educational advantages, but are these two factors enough? The answer is no. In fact, you will find a number of people who have got all these but still nowhere in life. Rather the smart decisions making ability and business choices with a few key characteristics have made them billionaires.

There are several billionaires out there nowadays, but do you know about the world’s first billionaire? The father of the petroleum industry, John D. Rockefeller became the world’s first billionaire in 1916. And, after a century, in 2015, there were a total of 1,826 billionaires worldwide, according to Forbes.

We often lookout for new investment opportunities that can help us in making more and more money, and cryptocurrencies have become a new investment trend led by bitcoins for a number of people. But just because everyone is spending does that make it worth spending on it.

Must-read: 5 Crypto Investment Mistakes You Should Avoid in 2021

 

Cryptocurrency is a high-risk investment sector, so even if you are willing to become a bitcoin billionaire. Ask these questions from yourself first:

 

1. Does the 21 million limit of bitcoin justify its price?

We all know that there are only 21 million bitcoins that can be mined in total, and out of that till now more than 18.5 million have been mined. Many people believe that because there is a limit, so its price is totally justified. Like gold, bitcoin also needs to be extracted the only difference is while gold must be extracted from the earth, Bitcoin is mined through computational means. 

Source: The Financial Express

Like bitcoin, Litecoin has a limit of 84 million, but its price is not anywhere near 25% of the price of Bitcoin. Currently, the price of a Bitcoin is $34,691.40, whereas Litecoin sits at $145.11. This figure compels us to think that if the limited amount of Bitcoin makes it so valuable, then why is Litecoin left behind in this race? 

 

2. Is it a good buy just because many institutional investors are opting for bitcoin?

The number of Institutional investors buying Bitcoin is rapidly increasing, and even several major firms have bought cryptocurrency worth hundreds of millions of dollars. In fact, MicroStrategy, a firm that produces mobile software and cloud-based services, bought $ 650 million in BTC in December 2020. Michael Saylor, founder, and CEO of the company has bet the future of the company on Bitcoin. He also took to Twitter to announce that he personally holds 17,470 BTC which currently worth over $616 million.

But the question here is just because some institutional investors move to bitcoin does that make it a good buy? Do institutional investors always make good investment decisions? You never know MicroStrategy may have made a mistake investing in Bitcoin.

 

Public Companies With the Biggest Bitcoin Portfolios

Many institutional investors are now more inclined to bitcoins, and some even challenge that bitcoin is the future of their companies. Also, some public companies are rapidly buying bitcoins. Get to know about some public companies that hold bitcoins.

 

3. Will it save you from monetary policy?

Indeed it is true that bitcoin is a decentralized digital currency without a central bank involved. Every transaction you do is peer-to-peer means there is no intermediary authority enquiring about how you spend your money. 

Source: CryptoNewsZ

Different companies adopt different ways of selling their products or services. For example- insurance companies use fear to sell annuities. But, the point is, does this fear justify your taking of any insurance policy? Of course, not. You go through every minute of details and information before opting for any policy. Similarly, just because there is no intermediary authority involved, it justifies the nearly doubling of Bitcoin’s price in 30 days? 

 

Bitcoin: The Foundation Of The Payments System And The Banking System

The evolvement in the payment system over the years has become a topic of discussion for many. Cryptocurrencies are slowly taking over the payment system, and bitcoin is leading above all others. Seeing the change in the scenario, many bigger investment banks and financial services holding companies are ready to accept bitcoins, and some have even started working in this area. Read more.

 

4. Bitcoin’s price is justified due to its network effect. Really?

The network effect is a phenomenon by which the value of a good or service improves by the increased numbers of people or participants. Some people argue that Bitcoin was the first cryptocurrency, so people like to buy bitcoins more as compared to other cryptocurrencies, and that’s why it becomes more valuable.

But does the network effect apply to bitcoins? Many people and institutions are buying more bitcoins, but does that increase its utility? Just because more people are buying it, is it becoming more useful? If yes, what are the improvements in its uses? As a buyer, you must get a satisfactory answer to these questions. 

 

5. Are you potential enough to handle the volatility?

We all know that cryptocurrency is a high-yield but high- risk investment sector. So, before buying it, one of the most important questions which you must consider is: Can you hold on to Bitcoin even if it drops by 50%? There is always a certain kind of risk involved in an investment, but bitcoin takes volatility to the extreme. And this can be beneficial for you as well as it can be equally harmful. So, go through every detail before buying bitcoin.

 

Go through the following articles to have more idea related to bitcoin investment:

  • Famous bitcoin millionaires and billionaires

When it comes to the investment that too a bitcoin investment, people can become bitcoin millionaires overnight. Here is a list of bitcoin billionaires and millionaires.

 

  • All about bitcoin mining

Bitcoin mining is a process of solving computational puzzles to create a new bitcoin. Get a detailed idea of bitcoin mining and how it works.

 

  • Young bitcoin millionaire offering investment ideas

You must have heard about a famous saying, "age is just a number". Well, some say it, and some prove it. We generally go for some experienced experts when it comes to taking advice related to investment. But, sometimes even the experienced one fails to give the right idea, and the youngest one cracks the deal. Get to know about the 19-year-old bitcoin millionaire and his advice for young investors.

 

We, at OpenGrowth, are continually looking for trending startups in the ecosystem. If you want to know any further information about the startup ecosystem or have any mind-boggling ideas, do refer our other blogs.

Sources/References:

*Note: The content published above was made in collaboration with our members.

About the author:

Jyotshana Rani, OpenGrowth Content Team

Jyotsana is very keen to express her views on new topics and wants readers to remember her through her writing. She is passionate about reading and believes that words wield the power of changing the scenario and she uses them to encourage people to the best of her knowledge.


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