Core Insights
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Between 2013 and 2024, Bitcoin yielded returns of 1,000 times the initial investment.
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An investment of $1,000 back then would now exceed $1 million.
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A prominent investor anticipates Bitcoin could reach $21 million by 2046.
- Check out 10 stocks we prefer over Bitcoin ›
Current Bitcoin Status
Bitcoin (CRYPTO: BTC) has risen by 25% this year (as of Sept. 18). However, it is also possibly experiencing its worst bull-market year to date.
Despite a decade of impressive triple-digit returns for Bitcoin investors, the cryptocurrency still has the potential to create new millionaires. If you’re prepared for a long-term investment, it may help you retire as a millionaire.
Bitcoin as the “Modern-Day Gold”
In a recent CNBC interview, Eric Trump characterized Bitcoin as “the greatest asset of our time.” Although his perspective may be influenced by the Trump family’s ventures into cryptocurrency, he presents valid reasons for various investors to consider Bitcoin.
No other asset offers the same risk-return profile as Bitcoin, which provides substantial annual returns while also offering downside protection. Some even compare it to modern-day gold because of its hedging capabilities against economic downturns.
Simplifying the Millionaire Equation
To become a crypto millionaire, the formula is straightforward: invest $1,000 in an asset with 1,000-fold potential, wait a few years, and achieve $1 million. While $1,000 is a significant investment, it’s also reasonable for anyone serious about saving for the future.
The challenge lies in identifying a cryptocurrency with that kind of remarkable potential. Years ago, Bitcoin filled that role, climbing dramatically from under $100 to over $100,000.
Future Potential of Bitcoin
As Bitcoin currently stands at $117,000, reaching a 1,000-fold increase would imply a price of $117 million per coin, which seems impractical. However, Michael Saylor from Strategy estimates that Bitcoin might hit $21 million by 2046, driven by increasing institutional investment and broader market adoption.
Should you invest $5,000 instead of $1,000, the projection suggests that amount could equal $1 million in 21 years, with an average annual growth rate of just under 30%. Given that Bitcoin’s five-year growth rate is nearly 60%, achieving a 30% annual gain is conceivable.
Long-Term Investment Outlook
One of the biggest challenges for buy-and-hold investors is maintaining confidence during market downturns. Bitcoin is familiar with volatility, experiencing significant drops in value in 2022 and 2018.
If you managed to hold on in 2022, congratulations. However, many investors opted to sell when prices dipped. The same volatility could happen again, and if it does, be ready to HODL (hold on for dear life). In doing so, you might one day find yourself a Bitcoin millionaire.
Is Investing in Bitcoin the Right Move?
Before jumping into Bitcoin, consider this:
The Motley Fool Stock Advisor team recently identified the 10 best stocks to buy now, and Bitcoin wasn’t included. The stocks that made the list have great potential for substantial returns.
For example, if you had invested $1,000 in Netflix back in December 2004, it’d now be worth $651,345, or in Nvidia from April 2005, it would be $1,080,327. Overall, Stock Advisor returns have averaged 1,058%, outperforming the S&P 500 by a significant margin.
Dominic Basulto holds Bitcoin and The Motley Fool has positions in and recommends Bitcoin. Please refer to The Motley Fool’s disclosure policy.
The views expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.
