It’s not an excellent strategy to go blindly in the direction everyone goes.
Let’s be honest; no one invests in cryptocurrencies to lose money.
We invest to earn x2, x5, x10, or x100 money.
While some people achieve their dreams, many lose money. In 2017, when Bitcoin was on the rise, I also invested. First, I earned a lot; then, I lost everything.
We are experiencing the same again and again. Bitcoin rose to the level of $60K with a significant rise and retreated. It is currently trading above the $50K level.
If you still think you’ll get rich by investing in bitcoin at these levels, you’re feeling the same thing as millions of people.
Maybe everyone is right, and I am wrong.
“I don’t have any Bitcoin. I don’t own any cryptocurrency, I never will,” — Warren Buffet.
I’m not saying “Bitcoin is a bad investment” or “you will lose all your money.” If the goal is to become rich, it is necessary to know that different ways still exist. It’s not an excellent strategy to go blindly in the direction everyone goes.
Investing in Bitcoin is very easy.
Bitcoin was complicated to buy when it was new. There was not enough information, and there was not an environment where one could buy with confidence. The risk was too high. That’s why those who invested in the early period made huge profits.
Now, there is almost no difference between buying chocolate at the grocery store and buying bitcoin. We can purchase cryptocurrencies from hundreds of exchanges with thousands of different methods. When a system that is easily accessible to everyone is built, the house always wins.
It will be enough to look at these numbers to understand how many people are investing.
The ratio of crypto investors to country population:
- Ukraine: 12.73%
- Russia: 11.91%
- Venezuela: 10.34%
- Kenya: 8.52%
- US: 8.31%
Interestingly, Ukraine is at the top of the list.
Market cap is growing.
With the rise in the prices of cryptocurrencies, the market is also growing rapidly. To understand the size of the market, it will be sufficient to look at the figures below.
- Bitcoin market cap: $973 B
- Gold market cap: $11.6 T
- S&P500 market cap: $38.2 T
- The global crypto market cap: $2.3 T
It has reached a size that can compete with other major markets. Let me warn you if anyone expects to grow x100, x1000 from this point on.
As large companies invest in bitcoin and start accepting payments, it could mean that volatility is beginning to wane. Companies are trying to protect themselves from the effects of inflation and to get a share from such a broad market among people.
What determines the value? What is the difference between the value of gold or other metals?
There is no income-generating structure behind it like stocks. You buy a piece of code, and it has no physical value.
As with any product, the price is determined by the supply-demand balance. Everyone hopes that the next buyer will pay a higher price and buy.
“Blockchain technology could change our world more than people imagine. Bitcoin, however, could be a bubble.” — Jack Ma.
The valuation problem of such an enlarged market may cause a significant global crisis that will affect the whole world. Maybe the next financial crisis will be because of the cryptocurrency markets.
How to become wealthy without Bitcoin?
Before Bitcoin existed, people could have wealth. Cryptocurrencies have accelerated this process for some people. That’s why all the attention has been focused on cryptocurrencies.
However, there are still basic methods behind it that have real value and maybe make wealth faster.
- Building a business
- Investing in stocks
- Real estate
Building a business: Even if the company’s risk of going bankrupt is high, the fastest method for self-confident and committed entrepreneurs is to start their own business. In the last 20 years, many entrepreneurs started from scratch and became among the wealthiest people in the world.
You don’t have to be on the top ten list of the wealthiest people in the world. It will be much easier to have a level of wealth that can comfortably lead your life.
Investing in stocks: Another method is stocks that have a value behind them. Although it’s the same as starting your own business, in this case, you don’t need to do anything for the company to grow. Others are thinking, working, and making money for you. All you have to do is find a good company run by the right people.
“Compounding has a snowball effect. It is just a tiny ball of snow at the very start, but it can turn into an avalanche over time.” ― Naved Abdali.
Of course, capital is required to invest. Once you start investing, you have a steadily growing wealth.
Real estate: The oldest of these methods is to own land or housing. Wherever the population increased, the need for housing increased, and as demand increased, prices rose.
Even though it may seem like it takes a lot of money to start investing, many people manage to get rich without any money.
In particular, they take advantage of the low-interest rates to increase their wealth by buying housing, renovating it, revaluing it at a higher price, selling it, or renting it.
Even if we experience the housing crisis we experienced in 2008, as demand increases, prices will quickly recover to their previous level, and your wealth will grow gradually.
Doing a little research on each subject and investing as you see the opportunities provides excellent returns. The option that everyone sees at the same time is nothing but an illusion. In a capitalist economy, it is never possible for everyone to be rich at the same time.
Apart from all the issues, we have mentioned, the most significant investment is his investment in himself. The more you learn and improve yourself, the more opportunities you can see and make better decisions.
Cryptocurrencies will not suddenly disappear from our lives; perhaps they will remain the most basic investment tool in the center of our lives. However, it will not be able to provide incredible returns like when it first came out.
I wish you to make the right decisions on the way to becoming wealthy.