Over the course of its 15-year history, Bitcoin (CRYPTO: BTC) has made plenty of millionaires. In fact, thanks to the open-source nature of blockchains , we can see that there are roughly 108,000 wallets with more than $1 million worth of Bitcoin.
Considering that Bitcoin has risen more than 18,000% over the last decade and a half, it's natural to think that the chances of joining the prestigious millionaire club are minimal. However, what if I told you that Bitcoin's millionaire-making abilities are still available to investors today?
Understanding Bitcoin's value proposition
Bitcoin's meteoric rise from worth a few pennies to over $60,000 is a journey only a select group could have imagined, and one primarily limited to those who understood Bitcoin's core fundamentals early in its history. Except for these individuals, Bitcoin has surpassed nearly every person's expectations, and the honest truth is that there is a considerable chance this trend will continue.
To understand how Bitcoin can keep up its trajectory of price appreciation (and its potential to make millionaires), a quick exploration of its characteristics shows that it is virtually programmed to keep increasing in value. Bitcoin's story has been one of resilience and adaptability. As it continues to prove its critics wrong, it also cements itself as a strong contender for future value appreciation. With growing institutional interest and the increasing acceptance of digital currencies, Bitcoin is poised to further solidify its position as a leading asset in the years to come.
Bitcoin's unique design plays a critical role in its potential for ongoing value growth. It has a finite supply with only 21 million Bitcoins to ever exist. This design positions Bitcoin favorably when it comes to the single dynamic that drives the price of every asset: supply and demand .
With a limited supply, Bitcoin's price doesn't face the threat of inflation as seen in fiat currencies or even precious metals where new discoveries add to the supply. From a mathematical perspective, this will inevitably benefit Bitcoin over the long term. But what factors are going to increase demand for Bitcoin and how high could these factors drive its price to make new millionaires? To answer these questions, it is best to leave them to those who are more qualified than myself.
The case for a seven-figure Bitcoin
In a recent report by investment firm VanEck, the company's analysts unveiled specific dynamics they believe will unfold in the coming years to help push Bitcoin to new heights. From VanEck's perspective, the single greatest factor that will contribute to Bitcoin's rise will be an increasingly uncertain and evolving global financial landscape.
Governments of the world's largest economies face increasing debt burdens, which are already at historic levels. In addition, the currencies that these governments issue continue to inflate, and likely will be pressured as those debts become more precarious.
There are some other factors that VanEck describes, but as this situation progresses (or worsens), it believes Bitcoin's decentralized nature -- void of any affiliation to a central government -- will help push the cryptocurrency to become a common medium of exchange. It could then rise to the status of a global reserve asset that every government, company, institution, and individual will own.
There are some other developments that will certainly play a factor in Bitcoin's long-term value appreciation, but when trying to add everything up, VanEck came up with an impressive prediction of Bitcoin's future value -- $2.9 million by the year 2050.
While no one has a perfect crystal ball, if this situation unfolds, that means one would need a little more than one-third of a Bitcoin to become a millionaire one day, or roughly $20,000 at today's prices. That's undoubtedly a considerable amount of money, but it doesn't mean you have to invest tens of thousands of dollars in one lump sum today. There is perhaps some urgency, but making consistent allocations over the long haul will suffice and could still help investors capture Bitcoin's unique millionaire-making abilities.
Final considerations to keep in mind
There is no doubt that VanEck's prediction may sound sensational, but how many would have believed that Bitcoin would be worth more than $60,000 if you asked them in 2009? In a similar fashion, there is a legitimate possibility that in the next 15 years Bitcoin will surpass nearly every expectation today.
With all this in mind, there is a clear case to be made that Bitcoin's best days remain ahead and that it still has the ability to make new millionaires. It won't happen overnight, but as the financial landscape and society continue to evolve, more demand will be forced to compete for Bitcoin's finite supply.
Before you buy stock in Bitcoin, consider this:
