The price of bitcoin has been going parabolic; having soared past $30,000 and even reaching $33,000. If you are anything like me you have probably been enjoying the price gains immensely, but at the same time wondering if you have enough bitcoin. While it is never too late to buy bitcoin and I never plan to stop buying, but at the same time the days where it was pretty easy to grow your bitcoin portfolio may have come to an end. Just a handful of months ago a person would be able to get at least 0.01 BTC by just investing $100. But now that same $100 would only net you 0.003 BTC; requiring around $330 to achieve the same 0.01 BTC amount. It is becoming much more expensive to accumulate BTC, and how will you know if you have enough? These are ideas that I tackle with every day; let's dig into this more.
First and foremost the perfect amount of bitcoin will vary for each individual. What may be perfect for me, may not be great for you and vice versa. The first concept you need to understand if to "never invest more than you are willing to lose." Bitcoin and cryptocurrency is a very risky game, and while currently we are all in great profits, the flip could be switched any second and the price of BTC could plunge. It has happened before, and it most likely will happen again as well. But if you aren't in current need of the money that you are investing, this becomes less of an issue while you invest with a longer timeframe in mind. For me currently, don't get me wrong, I do love the yearly high-prices. But I am more concentrated on each years' new low price.
Rainy Day Range (0.01 - 0.05 BTC)
Also, how much bitcoin you need will vary greatly on what your goals are, or even what kind of personality you have. If your goal is to have some extra money on the side for a rainy day, then just having a small percentage of bitcoin on the side would be enough to achieve this. Perhaps 0.01 BTC to 0.05 BTC. During the short-term this range probably won't make you rich, but it will be enough to give you a little extra cash on the side. This could be a great start to for many people to have an emergency fund; something that we have all learned last year that is crucially important to have.
Nest Egg Range (0.06 - 0.30 BTC)
If you are looking to invest a slightly bigger amount that could bring you a larger nest egg in the future; this would be the 0.06 BTC to 0.30 BTC range. With this investment range; this is the kind of results that I think might happen. For many people you would be able to pay off a large portion of your debt, purchase a new car with cash, use as a downpayment for a house, or have a nice side-item in your portfolio to begin saving for retirement.
Now we have reached the point where things truly become exciting.
Wealthy Range (0.30 - 1.5 BTC)
This next range admittedly is quite large and your situation could be quite different depending on where you fall in this range. Now keep in mind the dollar amount that makes a person rich today, because of inflation could be completely different in the future. By owning 0.30 - 1.5 BTC, this is the range where you will be considered wealthy, but still not mega-rich YET. At this range your BTC would be enough to buy a house, earn a great amount of interest by lending out your BTC, be the cornerstone of your retirement, and generally help you worry less about money. It is at this range that the bitcoin you own could be considered perhaps a life-changing amount. While maybe not enough to quit your job and retire yet, it would be enough to dramatically improve someones life.
Quit Your Job Range (1.5 - 5 BTC)
Again this range is even larger than the previous range, and therefore your situation here could vary a lot as well. Depending on how far the price of bitcoin goes could affect this greatly as well. It is at this point where a person can realistically in the future begin thinking about quitting your job. Perhaps this would mean retiring for many people, or starting your own business; it could mean a lot of different things. It would definitely be a life changing amount, and an amount that you would probably be able to live off of the interest alone.
Retire Young / Tropical Island Range (5 - 10 BTC+)
A personal dream of mine has always been to make it big from investments, retire young, and live out the rest of my life on a beautiful tropical island. At this range you could potentially achieve this goal. You would also be able to live off of the interest, start your own business, buy your dream house with cash, have money for your children, and generally not need to worry about money.
Empire Range (10+)
For many people this is a range that will be impossible to rich, but at the same time it is always nice to dream about it. At this range you would have enough money for many future generations of your family. You will be the richest person in your city, being able to buy anything you want and never have to worry a day in your life about money. Of course you could retire from working, but at this point you would have people working for you.
Of course all of these ranges are for after this next bull run and perhaps the next one after that in 4 years as well. The thing I do want to stress is that if you are anything like me; perhaps you will never be satisfied with the amount of bitcoin you have. When I first began investing in bitcoin I wanted to own at least 0.25 BTC. Once I achieved that I changed my goal to own at least 1 full bitcoin, and then after that I changed it to at least 2 BTC. I have now changed my goal to own 10+. But at the end of the day I know that I will probably never want to stop buying.
So which range are you in now, and which range do you hope to arrive at before the prices become even more to difficult to accumulate more bitcoin?!
As always, thank you for reading!
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