With bitcoins price lately, the question “Will Half A Bitcoin Make Me Rich” has been on a lot of people’s minds.
Now, It is definitely something to think about.
So continue reading and let’s ponder it together.
First, we must take into consideration what half a bitcoin costs today. Then we see what successful people are predicting and saying about it. So we can try and guesstimate what it might be worth tomorrow because at least for now that’s all it will be is an educated guess. Last but not least we need to decide what is considered to be rich. Since rich can mean different things to different people.
Some people believe you need at least a 2-million-dollar net worth to be considered rich.
Although, the average household in the United States doesn’t even have half that much.
Sadly, most Americans wouldn’t qualify as being rich when compared with some standard definitions of the word.
Although, what it means to be rich varies from one person to the next.
I consider a person to be rich financially if they are debt-free.
Also, I think that should include a passive income which by far supersedes their expenses.
Finally, I believe to be really rich is to be surrounded by people that love you unconditionally and that you love back!
Ten years ago (in 2011) most people had never even heard of bitcoin, much less thought of investing in it.
However, if they did know about it and would have had the insight to be one of the first people to buy it, they could have purchased half a bitcoin for only $5.00 on August 10, 2011.
As of today (8/11/2021), that same half of a bitcoin would be worth about $23,000.
Now if they would have spent just a little more money say $250.00 for 25 bitcoins, then they would be a millionaire right now.
That’s assuming they would have had the fortitude not to sell along the way.
Since there would have been a couple of temptations calling them to sell right around the corner.
For instance, on April 2, 2013, when bitcoin's price first broke $100.00.
How about on November 28, 2013, when it pierced $1000.00. Now, this is why most seasoned investors have a plan.
When they first buy something, they establish a price to sell it at if the value drops and what price to sell some or all of it if it goes up past a certain point.
Then they try not to let their emotions get the best of them and talk them out of it.
When it comes to bitcoin or any other crypto for that matter, no one really knows where its price will be in 10 years.
It’s not like anybody in the crypto industry is a soothsayer.
However, there have been a lot of people who’ve made predictions.
So there are those people who say bitcoin is a fraud and that it will fail.
Then on the other hand you have the people who say it’s the future and that it will be worth millions of dollars someday.
One of those predictions was made by Michael J. Saylor, CEO of MicroStrategy.
Michael Saylor says he sees Bitcoin being capable of reaching a market cap of $300T in the long run.
Which would put one bitcoin being worth about $14,000,000.
So that would mean half a bitcoin should be around $7,000,000.
Could you imagine that?
Well no matter which side of the fence you’re on, fraud or future, you have to admit that bitcoins last 10 years has been one wild and exciting ride.
To start with, everything I’m about to write except for the bitcoin prices is purely a hypothetical theory.
In saying that, below are the approximate average prices of bitcoin over the past 10 years:
(1) 08/10/2011 to 08/10/2012 - $6.81
(2) 08/10/2012 to 08/10/2013 - $111.40
(3) 08/10/2013 to 08/10/2014 - $614.62
(4) 08/10/2014 to 08/10/2015 - $396.25
(5) 08/10/2015 to 08/10/2016 - $485.59
(6) 08/10/2016 to 08/10/2017 - $1,994.78
(7) 08/10/2017 to 08/10/2018 - $11,423.46
(8) 08/10/2018 to 08/10/2019 - $8,070.03
(9) 08/10/2019 to 08/10/2020 - $8,462.18
(10) 08/10/2020 to 08/10/2021 - $36,620.61
Then when you average the 10 years together you get $6,818.57.
Now bitcoins highest price to date was $64,863 and it was reached this year on 4/14/21.
The average daily price on 4/14/21 was $63,109.70.
Next, the average price from 4/14/21 (bitcoin’s high) to 8/10/21 is approximately $46,386.
So historically bitcoin’s price hasn’t gone over $65,000 and it definitely hasn’t averaged over $65,000 in the past 10 years.
Also, there have been a lot of price predictions made over the years.
For the purposes of this hypothetical theory, I’ll briefly mention three.
(1) In 2020 (Tyler and Cameron Winklevoss) the famous Bitcoin billionaires told CNBC that “bitcoin will skyrocket to $US500,000 within the next decade as it surpasses gold as a store of value.”
(2) Chamath Palihapitiya the Founder of Social Capital and Co-Owner of the Golden State Warriors predicted it would reach a price of $1 million by 2037.
(3) (Jonathan Garber) wrote in Business Insider on May 4, 2017 “according to Jeremy Liew, the first investor in Snapchat, and Peter Smith, the CEO, and co-founder of Blockchain. In a presentation sent to Business Insider, the duo laid out their case for bitcoin exploding to $500,000 by 2030.”
So here comes the hypothetical 10-year bitcoin millionaire theory.
Don’t worry, this part is shorter than the beginning.
So say I were to invest $500 a week in bitcoin over the next 5 years.
At the end of the 5 years, I would have spent $130,000 on bitcoin.
Now, if bitcoin were to average $65,000 or less over those 5 years I would have at least 2 bitcoins.
Also, even if the low end of the three predictions were to come true that would put bitcoins price at $500,000 in 10 years.
So if I have at least 2 bitcoins in 5 years and then continue to hold them for the next 5 years, I would have at least $1,000,000.
This is assuming everything in the theory works out.
Now I'm directing this at me and it is not intended as financial, investment, legal, or tax advice and therefore should not be relied upon as a substitute or replacement for professional advice.
Also, you should never invest more money than you can afford to lose, and before buying or investing in anything you should consult with a financial, investment, legal, & tax advisor.
If the price of one bitcoin goes to 14 million dollars like Michael Saylor says it could (although, I don’t think it’s likely to go that high, possibly the $500,000 to $1,000,000 range), then half a bitcoin would be worth 7 million dollars. Will that make you rich? Financially, I would lean towards hell yes! However, I believe there is more to being rich than just money. To truly be rich you also need to be surrounded by people that love you and whom you love in return…IMO.