Since Bitcoin's launch in 2009, it has attracted a growing user base. The majority of Bitcoin users are individuals. Individuals use Bitcoin for various reasons, including as a digital currency for payments and investment assets. The majority of the users fall in the second category. Others have developed amazing trading apps for trading Bitcoin, such as bitiq
The internet and other media have often presented stories of individuals who became overnight millionaires because of Bitcoin. These are known as Bitcoin millionaires, and they are many. These are individuals whose financial statuses changed significantly for the better because of investing in and using Bitcoin.
Some Bitcoin millionaires are individuals who have developed products and services around the Bitcoin ecosystem. For example, the founder of Binance, a popular crypto exchange, Changpeng Zhao, is a Bitcoin billionaire.
This article examines how Bitcoin can change your financial status.
Bitcoin Can Make You Rich
One of the obvious ways that Bitcoin can change your financial status is by making you rich. You may be struggling financially or not among the millionaire group today. But by investing in Bitcoin, you can become rich in a snap. You are wondering how this could happen.
Let's say you decide to start trading Bitcoin today. Bitcoin trading is essentially about buying and selling Bitcoin. It follows the concept of buy-low-sell-high. And this means you will buy Bitcoin when the prices are low and then sell when the prices are high. A fantastic feature of Bitcoin is its price volatility. The price keeps changing, and this is where Bitcoin trading comes in.
If you are an excellent strategic trader and have some luck, you can reap much profit from Bitcoin trading. For example, someone who purchased 10 Bitcoins in 2010 at less than $10 has now accumulated wealth to over $200,000 since Bitcoin's price is around $20,000. Such growth would be strange in typical investment assets like stocks.
Apart from trading Bitcoin, you can also become rich by developing products and services that align with Bitcoin. For example, you can create a Bitcoin trading app or crypto exchange software. And this is how most Bitcoin millionaires like Changpeng Zhao attained their current millionaire statuses.
Bitcoin Can Make You Poor
Just like it can make you rich, Bitcoin can also make you poor. It can drain your finances, leaving you more destitute than you were before. It is also about fate and how you invest in Bitcoin. For instance, making rushed investment decisions not backed by enough research and rationality could make you put all your savings into Bitcoin and lose it all.
Bitcoin is a highly volatile and risky investment. Prices can plummet or crash at any moment. For example, Bitcoin has shed over 67% since November 2021. After hitting an all-time high of $68,000 in November 2021, the price started nose-diving into the first five months of 2022. And this led to many investors losing money.
Moreover, Bitcoin can become quite addictive. Trading Bitcoin and expecting to reap big can be a detrimental strategy that could drain your finances. In this addictive mode, you would ignore losses in anticipation of a more significant gain, only to end up with nothing.
Conclusion
Bitcoin has made many millionaires and billionaires. However, it has also made some people poorer. It is essential to understand these realities when using Bitcoin.
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