Can You Become a Bitcoin Millionaire Overnight?
Bitcoin price predictions aren’t exactly hard to come by these days, but most articles avoid the tough questions, such as: “Is it too late to become a Bitcoin millionaire?” That is because those types of questions are hard to answer.
Most people are drawn to Bitcoin because, since its inception in 2009, the cryptocurrency has outperformed just about every other asset on the planet.
The first time we saw a Bitcoin to USD exchange rate was when a Bitcoin miner spent 10,000 tokens to buy two large pizzas.
Somewhere, that man is kicking himself, because those tokens are now worth more than $40.0 million. And he spent it on two large pizzas.
In any case, those that held onto Bitcoin became extremely wealthy. It was a perilous journey, during which volatility was a frequent and violent companion, but BTC prices made it all the way to $4,335.94 (at the time of writing).
Is this where prices level off? Or even if BTC prices continue to move upwards, will the gains be enough to turn you into an Bitcoin millionaire overnight?
Here’s the answer: Yes and no.
Yes, Bitcoin is able to generate more millionaires, but no, it won’t happen overnight.
Let me explain…
Bitcoin Is Still Soaring, Just Not as Fast
The truth is that early investors always win bigger than later investors. By putting down money at an earlier stage, they take on more risk and are awarded with correspondingly higher returns.
You see a similar pattern with stocks. Angel investors that get in at the ground floor receive 10-times their investment before retail investors know what is happening.
Only the uber-wealthy and VCs get to invest at that stage. By the time those companies go public, millions have already been extracted, leaving only moderate growth for the average investor.
To be clear, there are exceptions to the rule. Great companies are sometimes undervalued, leading to massive upside potential for investors. Our job at Profit Confidential is to hunt down these opportunities and share them with our subscribers.
We have an incredible record of finding triple-digit winners (stocks that increase by more than 100%), but it still burns to know that higher returns were possible on most of those companies.
In the same way, we know that Bitcoin is unable to recreate its past success. Below is a Bitcoin millionaires list that shows just how wealthy some of the early investors became.
|Bitcoin Millionaires List|
|Tyler and Cameron Winklevoss||$523M|
*Note: The numbers are approximate because Bitcoin’s price is volatile and these investors may have cashed out some part of their holdings.
Many of these gentlemen woke up one day to find themselves sitting on more than $1.0 million worth of Bitcoin. It’s very unlikely that people buying Bitcoin today are going to experience that rush of overnight success. Don’t let that discourage you, though, because our BTC price forecast shows that Bitcoin can still double in the next 12 months.
Our very own Patrick Brik made a similar BTC price forecast last year, saying that Bitcoin prices would reach $4,000 in 2017. At the time, it was trading below $1,000. Everyone thought he was crazy, but it turns out that he was on the right side of history.
Yet that prediction only lifted Bitcoin prices by 350%. Under normal circumstances, more than quadrupling your investment is considered a success, but Bitcoin will always live in the shadow of its former glory.
Our Bitcoin price prediction for 2018 is $10,000 (at the low end). It’s considered a bold forecast by many, yet I expect the opposite reaction if and when Bitcoin reaches that level. Critics—perhaps even the same critics—will be saying we weren’t bold enough.
Other Cryptocurrencies Are Following Bitcoin’s Path
Bitcoin attracts a ton of media attention, but there are more than 850 different cryptocurrencies awaiting your investment dollars. Many of them are minting new millionaires every day.
For instance, Ripple skyrocketed 3,914% since the start of the year. Ether, the native token on the Ethereum platform, surged 3,923%. These are just two other tokens that are following Bitcoin’s hockey stick pattern, with hundreds of others right behind them.
If you are here for the investment returns, it hardly matters what name is on the token. All that matters is your account balance. In which case, Bitcoin is indirectly your path to millionaire status, because without Bitcoin none of these other cryptocurrencies would exist.
Investors that missed out on Bitcoin’s early years don’t have to miss out on the early years of these new currencies. But since many of these cryptocurrencies piggyback on Bitcoin’s blockchain, their ascent acts as a tailwind for BTC prices.
In fact, most often Bitcoin is an intermediary for purchasing these coins. Investors have to exchange their fiat money for Bitcoin and then trade their Bitcoin for whatever token they’re trying to acquire.
Some novel currencies like Ethereum, Litecoin, and Ripple have escaped this paradigm, but hundreds of others are pinned to Bitcoin, making BTC tokens in effect, a reserve currency.
What About the Bitcoin Fork?
The Bitcoin fork was a giant “nothing burger.” After weeks and weeks of gut-wrenching tension, the only thing that happened was that Bitcoin gained an umpteenth imitator known as Bitcoin Cash (BCH).
The doomsday predictions did not come true; Bitcoin prices did not collapse.
In fact, Bitcoin prices soared in the weeks that followed.
Surprisingly, it was the Bitcoin Cash price that struggled to take flight, probably because its mining process was slower than expected. It took half a day to mine the first block, awakening investors to the possibility that the hype around Bitcoin Cash was just that: hype.
Analyst Take: Bitcoin itself won’t make you a millionaire overnight, but there are other cryptocurrencies descended from Bitcoin which could lift your wealth into seven digits.
If you can stomach the risks involved, then I’d suggest looking at some of the newer tokens, many of which are racking up three- and four-digits gains in a single week. Or if you are willing to be slightly more patient, then keep faith with Bitcoin.
Maybe it won’t happen overnight, but Bitcoin still has the power to mint millionaires. It’s likely going to outperform most asset classes over the next few years, so I wouldn’t suggest turning your back on it just yet. There’s still a lot of money to be made.