Prepare for a $500,000 Bitcoin.
This is Bitcoin's path to $500,000. What if you started investing from zero today - where should you put your money: stocks, real estate, or cryptocurrency? Which one is the best? The fastest path to $1 million would be with Bitcoin, and here is why.
Hello there, and welcome to HotNaija, your one-stop destination for the latest entertainment news, celebrity gossips and stories, lifestyle content, and cryptocurrency news. Today we'll be discussing how you can successfully hit the $1,000,000 mark treading in the Bitcoin path.
Imagine you invested buying 2 Bitcoin at the current price of $66,000, and let's imagine Bitcoin reaches $500k per coin in the year 2030. That would make you a hypothetical millionaire in dollars. How would that money do in the stock market, assuming you invested that into the S&P500? It would take you until the year 2047 at the rate of 10% per year or 17 years after you would become a millionaire with Bitcoin. Is that really possible? Here are some paths to getting there.
Path 1:
This is the biggest news that crypto has had the entire year, bigger than Elon and Tesla buying Bitcoin and the issuance of Bonds on Ethereum. What would happen to Bitcoin if a country outside the dollar, the
Euro, the Naira, the yen, the British pound, etc., a country outside of primary currencies would start adopting Bitcoin as legal tender?
The first country to adopt Bitcoin as legal tender, just months back, is El Salvador. The announcement came at the Bitcoin conference in Miami, where the country's President – Nayib Bukele, announced that citizens of El Salvador will be able to buy, sell, set prices in denominations of Bitcoin, and even pay their taxes in just 3 months. This is not a proposal; the bill was passed with a supermajority vote. And the best part is the Bitcoin transactions will not be subject to capital gains taxes.
El Salvador has a population of 6.5 million people, and every single one of its businesses will start accepting Bitcoin. 70% of El Salvador's population doesn't have a bank account, and if 1% of the current market cap of Bitcoin is invested in El Salvador, it will increase their GDP by 25%.
Path 2: Corporate buying
Fun fact: There are 50,000 publicly traded companies in the world. Of those 50,000, can you guess how many own Bitcoin on their balance sheet? 32 out of 50,000. That represents 064% - that's not even a tenth of 1%. Will this number go down or up over time? What happens when 100 companies own Bitcoin? What about 1,000 of the 50,000? What if it's 10,000 - what would that do?
In this scenario, Bitcoin could easily skyrocket past $500,000 if more corporations worldwide started buying it.
Path 3:
The next path is something Kevin O Leary talked about, so credit to him. It's about hedge funds. Remember, hedge funds are just pools of money that are primarily made from wealthy people's money. If you want to be part of a hedge fund, all you need is a net worth of at least one million dollars, excluding your house. You can make anywhere from $200k to 300k a year and up.
As of 2021, hedge funds have access to a little over 4 trillion dollars. Why haven't they started buying yet?
What is ESG?
ESG stands for economic, social, and governance. It's a way of rating investments based on how ethical and sustainable they are. Hedge funds want to make sure the money they invest is compliant with ESG standards, and Bitcoin doesn't (yet) meet that requirement for them. When it does, the floodgate to hundreds of billions of dollars will open.
Not enough Bitcoin:
There are well over 45 million millionaires (dollars) in the world, and there's only ever going to be 21 million Bitcoins in existence. There are not enough Bitcoins if every millionaire today decides to own just 1. If having a million-dollar net worth is something that you're into - Bitcoin will beat every other asset, including stocks, so if you want to be a millionaire, it's inevitably quicker with Bitcoin.
EndNote: None of this should be considered investment advice. This article is for informative purposes only.
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