Do you want to Be a Bitcoin Millionaire? Two Main Tips of Bitcoin Investing
This past year we have seen a tremendous increase in the value of Bitcoin. In early-January 2016, the value of Bitcoin was close to $400, and now it is hovering around $2000. It is, however, not the value alone that is interesting, but also the potential that the Crypto Currency holds that is of interest in the uncertain times we live in.
If 2017 proves to be another year of change, could Bitcoin follow?
Who wants to be a millionaire?
These are the rags to riches stories.
Kind of like asking a child if they want candy.
With Bitcoin, there are many reasons to believe the Crypto Currency has the power to create wealth. The writer has started purchasing small amounts of Bitcoins starting in 2014. Since that time, the price of Bitcoin is up 400 to 500% depending on the day you look at the price of Bitcoin. Even small amounts of Bitcoin have made people incredibly wealthy.
If you started purchasing Bitcoins when they came out in 2009, at 1/1000th of a cent $.0001, and you bought 100 coins, those coins today would be worth a small fortune.
The First Rule-Hold on to all your Bitcoins Dummy!
If you don’t hold your Bitcoins, how can you expect to reap the rewards? As highly famed Stock Investor, Warren Buffet, states, “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”.
Bitcoin has the power to be one of those “opportunities”.
Looking back at 2016, if we look at January 1, 2016, to December 31, 2016, the Price of Bitcoin went from $430 to an end of the year price of $968.
That’s a good return on your investment.
That is a doubling of your investment since January 2016 to December 2016.
Most would be tempted to cash in some of those returns, right?
That would be the wrong answer if Bitcoin goes a whole lot higher, as the crypto infrastructure is being invested into Bitcoins and not some other Crypto Currency.
The Second Rule-You must keep your Bitcoins safe
If you have Bitcoin, you must keep them safe.
Here are some ideas on how to do that. Remember; do not trust your assets with other people, such as Exchanges, or worse an Exchange wallet. Only save your Bitcoin in a wallet whose private keys “you” control. Better still, invest in either a hardware wallet or a paper wallet like the Armory wallet, to secure your Bitcoins.
Make sure that only trustworthy people have access to your Bitcoin, so that if something happens to your mortal self, at least your family can benefit. This is simple stuff. Many people have learned the hard way, as Bitcoin goes up in value, the higher the chances you may become a victim of theft.
Could Bitcoins make you a millionaire?
Nobody knows these answers at this point, but we believe the future will be extremely obvious who made the right decisions and those who didn’t. For the small price of a cup of coffee each day invested into Bitcoin, this could separate you from everybody else.
Is this future 1 year? 2 years? 5 years? Will Bitcoin go to two million dollars a coin? Will the US dollar have ANY value by then? Alternatively, does a million dollars only buy a loaf of bread?
We believe the long-term Bitcoin price will resemble something more like a long-term chart of the Dow Jones. There will be a lot of price volatility along the way.
Remember back in 2010, a computer guy named Laszlo Hanyecz paid for a pizza with 10,000 Bitcoins. Today, that pizza would be worth nearly $8 million. He probably wishes he had those 10,000 Bitcoins back now!
So, if Bitcoin replaced the US Dollar as the world reserve currency, the multiplication factor would need to go way up, since there is approximately $80.9 trillion in US Dollars in circulation and since there will ONLY be 21 Million Bitcoins produced, which would make each single Bitcoin worth $3,852,380 a coin! Obviously, that is an extremely aggressive target. As when the next financial collapse hits, the world is going to run to get into Bitcoin, because there will be few places to hide and nobody will want paper currency. One day, the value of a Bitcoin could be sitting at $10,000 a Bitcoin and the next it could easily be at $100,000 a Bitcoin!
Care to add a couple of commas to your investment accounts?
There are no guarantees to any investment.