Bitcoin

Is Bitcoin a Millionaire Maker?

Published

6 months ago

15 July, 2024

Along Bitcoin(CRYPTO: BTC) has made thousands of millionaires in its 15-year history. In fact, we know exactly how many there are. Data from Glassnode, a blockchain analytics firm, shows approximately 104,000 Bitcoin wallets worth more than $1 million today.

However, after experiencing such a dramatic rise over the years, it’s natural to think that your chances of joining this exclusive club have gone down the drain. But what if I told you that Bitcoin still has what it takes to make new millionaires?

Person with surprised face

Image source: Getty Images.

Why Bitcoin is the ideal asset

To put it simply, for Bitcoin to continue making millionaires, its price needs to keep rising. This isn’t rocket science, but a more subtle dynamic is at play here that makes it Bitcoin uniquely suited to continue rising as it has done over the past 15 years. One of the main factors in this dynamic is Bitcoin’s finite supply. Bitcoin’s supply is capped at 21 million coins, making it more likely to appreciate in value over time due to simple supply and demand dynamics.

Bitcoin’s hard cap means that as demand increases, the price is likely to rise. There are currently 19.6 million Bitcoins in circulation, with the remaining 1.4 million coins gradually entering circulation until 2140. This slow and decelerated release of new coins ensures that Bitcoin remains scarce. As long as demand continues or grows, this scarcity should drive the price higher.

Comparatively, other assets like stocks can undergo splits, which increases the number of shares and can dilute the value. Gold, another popular store of value, is diluted as new gold is discovered and mined. Bitcoin, however, cannot be diluted in this way. Its decentralized and distributed network ensures that there will only ever be 21 million Bitcoins, making it an ideal asset for creating millionaires. There is no room for game-changing inflation in this system.

Scenarios for investors to consider

Whether Bitcoin can create new millionaires depends on two factors: how much you invest and how high Bitcoin goes. The higher Bitcoin goes, the less money you need to invest to become a millionaire. The underlying question here is how high Bitcoin can go. While no one knows for sure, several studies and analyses suggest that Bitcoin could one day be worth more than $1 million per coin.

One of my favorite models for predicting the future price of Bitcoin is the Bitcoin Power Law Theory, created by astrophysicist Giovanni Santostasi. The Power Law is a statistical principle that describes phenomena in the natural world, such as the size of cities, the number of species in an ecosystem, and the distribution of wealth. Applied to Bitcoin, the Power Law fits surprisingly well, as Bitcoin exhibits characteristics of a natural network rather than a manipulated system like fiat currencies.

The story continues

Just as the Power Law is applied to natural phenomena like the distribution of city sizes or the prevalence of species, it can also be used to analyze Bitcoin through the variables of users and transactions. This model quantifies the number of Bitcoin addresses and transactions to correlate with Bitcoin’s price growth. It predicts that Bitcoin could reach a fair market value of over $1 million by 2032 and potentially skyrocket to over $4.5 million by 2040. This approach highlights how network effects drive Bitcoin’s growth, offering a robust framework for understanding its long-term price potential.

Another noteworthy analysis comes from ARK Invest. After examining various scenarios and factors, ARK Invest projects that Bitcoin could reach $3.8 million by 2030 as institutional investors begin to allocate more capital to the cryptocurrency.

While these projections may sound sensational, it’s hard to ignore that Bitcoin has consistently defied expectations. In 2015, few could have predicted that Bitcoin, then trading at just $1,000, would reach over $70,000 within a decade. While the future is uncertain, Bitcoin has a history of surprising markets and will likely continue to do so for decades to come.

What it takes to be a millionaire

Let’s keep it simple. If Bitcoin hits $1 million, you would need to own a whole Bitcoin to become a millionaire. If it hits $2 million, you would need half a Bitcoin. At $4 million, you would need a quarter of a Bitcoin, which is worth about $13,000 at today’s prices.

While past performance is no guarantee of future results and no model is perfect, Bitcoin’s unique characteristics make it a strong candidate for continued price appreciation. Its finite supply, coupled with increasing demand and growing acceptance, presents a compelling and clear case for long-term growth more than many other assets.

While Bitcoin is not a get-rich-quick scheme, it has been a rewarding asset for patient investors. The future of Bitcoin remains bright, and its potential to create new millionaires is far from exhausted.

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Is Bitcoin a Millionaire Maker? was originally published by The Motley Fool

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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