Buying Bitcoin Will Not Make You Rich

Someone has to be realistic.

Buying Bitcoin will not make you rich — unless you are already rich. Not only does the math support this claim but also contemporary world events shaping bitcoin’s value. Despite the fanboys, the folks who have already become rich off of Bitcoin, and those who are ardently waiting to strike it big, I’m here to unequivocally say that Bitcoin will no longer make people rich like Dogecoin did. Allow me to break both down for you.

At the time of writing, 1 Bitcoin is worth $35,462.58. We all know Bitcoin, and every other cryptocurrency’s value fluctuates across a single minute. So while things are looking healthy for Bitcoin at the moment, it could easily dip (lose value) once again. While many people think that $10 in Bitcoin will make them rich, this is totally not true. Coinbase or Voyager bonuses ($5 and $25, respectively) are used as lures to bring new investors into the market so they can make money off of transaction fees and spread. However, let’s say, for example, you have $5 of Bitcoin at the above price. What would that $5 be worth if Bitcoin suddenly shot to $100,000 overnight.

At $5 of Bitcoin, you own approximately 0.00014099 Bitcoin (with a Bitcoin valuation of $35,462.58).

If you take 0.00014099 and multiply it times $100,000, you would now be the proud holder of $14.09 of Bitcoin — an approximately 280% gain but unless you only like tossing around big numbers in your conversations, instead of actually owning them, your gains aren’t much to brag about. A simple equation:

A lot of platforms that people use to trade cryptocurrencies are engineered to psychologically make you feel like you are earning money [1]. While you may own $100 of Bitcoin, your potential profit, given current values, is very, very low. For you to become a millionaire off of that $100 of Bitcoin you would need 1 Bitcoin to be worth over a billion dollars (again, despite what the “fans” say, I do not see this ever happening).

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