The vast majority of us got into cryptocurrencies in the hopes that they would improve our financial situation.
We are holding out hope that we will one day be in possession of a tool that will assist us in advancing in life, provide us with some financial breathing room, and ultimately lead to our being wealthy. But how much bitcoin or another cryptocurrency do you need to own before you can consider yourself wealthy? Spite of the fact that it is quite difficult to believe, particularly when considering the prices and market capitalization of many of the largest cryptocurrencies
For instance, at the beginning of 2017, the price of a single bitcoin was still less than $1,000. That is to say, if you had spent $20,000 on bitcoin, you would have received more than 20 BTC, the equivalent of which would be worth around one million dollars today. However, as of right present, the same investment of 20,000 dollars would only get you one Bitcoin.
The times have moved on. Let’s have a look at Ethereum now. At the beginning of 2017, the value of one Ethereum was equivalent to little more than seven dollars. If you had put $1,000 into ETH at the same time, you would have obtained something in the neighborhood of 142 ETH. Which would be equivalent to around $485k in today’s market. If you put the same $1,000 into Ethereum today, you wouldn’t even be able to buy 0.70 of the cryptocurrency with it. The times have, in fact, changed.
However, this does not indicate that it is too late to make a change. The cryptocurrency market is only getting started, according to the predictions of many industry professionals, who believe it will eventually travel in a certain direction. Before only a few years ago, it would have been unthinkable to predict that the price of a single bitcoin would reach one million dollars before the year 2030. However, this prediction is extremely possible.
There is a significant possibility that the price of Ethereum may reach $50,000 before the year 2030. Let’s speak about a hypothetical case in which you had a portfolio of one million dollars in the year 2030. Let’s call this year 2030. This might be accomplished by possessing one complete bitcoin or twenty Ethereum.
Both of these options are viable. The unpleasant reality is that one million dollars is not nearly as valuable as it once was, and that sum alone will not be sufficient to make you wealthy. In particular, the deeper we look into the future we go. Because of this, increasing the yield on your coins will continue to be an extremely significant strategy not just to amass more coins as prices rise but also to possibly sustain one’s lifestyle off of the passive income generated by the coins.
The market for lending bitcoin has been quite volatile as of late, with loan rates continually shifting and mostly moving in the negative direction. It is becoming much more difficult to obtain amazing rates for lending your bitcoin when in the past it was rather simple to find rates of 6% or more. Let’s imagine, however, that you are able to get a moderate loan rate of 4% for one complete bitcoin, which would be worth one million dollars in 2030.
You would make an additional 0.040 BTC every year, which is equivalent to around 0.0033 BTC per month. Which would amount to an approximate monthly interest payment of $3,333 or an annual interest payment of $40,000. This figure will continue to rise the longer you continue to lend out your BTC, and it would rise even more if you were able to locate greater rates. Even while that interest is not sufficient to make you wealthy, it is sufficient for some individuals to survive off of it in a modest manner or to build up to something far more substantial.
After that, we will discuss Ethereum. For the sake of this intellectual exercise, we will not be lending out our Ethereum but rather staking it. It is common knowledge that once the blockchains of Ethereum 1 and Ethereum 2.0 are combined, the interest rate for staking ether will almost certainly increase by a factor of at least two and maybe even three.
Consequently, this is an extremely profitable business prospect. If you staked 20 Ethereum at an annual interest rate of 8%, you would get 1.6 Ethereum, which is equivalent to 0.1333 Ethereum on a monthly basis. This would come out to around $6,665 per month or $79,980 each year. Again, not enough to make you wealthy right away, but plenty for someone to be able to live a moderate lifestyle off of it. Or you might continue saving and allow it to accumulate fast.
Because, in my view, bitcoin and Ethereum are the two blue-chip coins that have the highest possibility of being around in the future, I have decided to discuss both of these cryptocurrencies. However, there are other cryptocurrencies for which you may make very well by lending them out and staking them. There are a few of them that provide even greater stake rates. You just have to locate the cryptocurrency that most suits your needs and expectations, one that will maintain its value over time while also thriving in the market.
Having said all of that, I am an exceedingly optimistic person about the future of the cryptocurrency sector. I believe that the price of a bitcoin will rise to more than one million dollars and that the price of Ethereum will even surpass fifty thousand dollars. The one and only challenge are that you will need an adequate amount of time to complete it.
This is how I would go about it. I am trying to get my hands on as much Bitcoin and Ethereum as I possibly can. Even though we may not be as early as we once were, those two businesses are still the most successful in the market. Through staking and lending, I will be able to amass these at a much quicker pace.
Even while these two topics take up most of my attention, I am not closing off the possibility of exploring other avenues. There are still opportunities available to start early on a variety of projects. Outside of bitcoin and Ethereum, a few projects that I continue to be positive about include Polkadot, Terra Luna, RUNE, and a few more. I don’t consider any of them to be early in their development stages.
The lesson to be learned from this experience is this. It’s possible that the days of becoming wealthy quickly in the cryptocurrency market by investing simply a few hundred dollars are numbered. However, if you put in a lot of effort, have a lot of patience, and create many sources of passive income, it is still extremely feasible to become wealthy with bitcoin, Ethereum, or another cryptocurrency. Create a plan for yourself, and then stick to it.