Summary:
Bitcoin's price has surged from under $10 to over $50,000 in a decade.
There are currently 40,500 Bitcoin millionaires worldwide.
Michael Saylor predicts Bitcoin could hit $49 million by 2045.
To become a billionaire, one would need to invest over $1 million in Bitcoin.
The "triple maxi" investment thesis involves extreme risk-taking and ignoring traditional investing rules.
As Bitcoin's price forecasts continue to climb, so do the expectations surrounding its potential to create generational wealth. Over the last decade, Bitcoin has produced a significant number of millionaires, skyrocketing from below $10 to over $50,000. According to the latest Crypto Wealth Report, there are now at least 40,500 Bitcoin millionaires worldwide.
Bitcoin Price Forecasts
You may have heard some bold price predictions for Bitcoin, with some suggesting it could reach $1 million by 2030. At the Bitcoin 2024 event, Michael Saylor, executive chairman of MicroStrategy, proposed an even more astonishing forecast of $49 million by 2045. However, this raises the question: what kind of investment is necessary to become a billionaire?
To become a billionaire at that price, you would need to own 20 bitcoins, requiring an upfront investment of over $1 million at current prices. This daunting figure is a major barrier for most potential investors.
The "Triple Maxi" Investment Thesis
For those not already millionaires, Saylor's "triple maxi" investment thesis offers an alternative path. This approach involves complete faith in Bitcoin, taking on significant debt, and disregarding traditional investing rules.
Bitcoin maximalists (or maxis) believe Bitcoin is the only cryptocurrency worth investing in. From 2011 to 2021, it was the best-performing asset globally, boasting annualized returns of 230%, far surpassing tech stocks.
To escalate to billionaire status, investors must transition to a "double maxi" approach, moving all financial assets into Bitcoin and using earnings to purchase more. The "triple maxi" strategy pushes this further, advocating for total investment in Bitcoin, accruing debt, and relocating to tax-friendly jurisdictions.
Are You Ready to Break Investing Rules?
However, pursuing this billionaire dream requires ignoring many fundamental investing principles, such as portfolio diversification. Traditional investing encourages spreading investments across various asset classes to mitigate risk. Yet, triple maxis would accumulate debt in hopes of Bitcoin's aggressive appreciation.
Despite optimistic forecasts, the reality remains that even with a bullish outlook, Bitcoin may not guarantee billionaire status. While the long-term prospects for Bitcoin remain bright, risking everything to chase this dream can be perilous.
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