How to Become a Bitcoin Millionaire: Here’s What the Data Says
We understand. So do we! 🙂
The surprising thing is that it actually doesn’t require you to invest that much to get there as long as you keep buying bitcoin on a regular basis. At least, that’s what the data says.
So let’s jump in and find out how much you would have to invest in bitcoin and at what intervals to (potentially) become a bitcoin millionaire.
Here’s What the Data Says
To find out how much you would have to invest either on a weekly or a monthly basis to end up with a bitcoin portfolio worth over one million dollars, we are working with three assumptions:
- You will invest for five years
- You will “HODL” your bitcoin and not sell any during the investment period
- Bitcoin will generate the same returns in the next five years as it did in the last five years
Yes, the third assumption may be a bit of a stretch. In the last five years, bitcoin generated a return of 1,775% and it’s hard to imagine that it will do the same in the coming years.
But that again, did you expect bitcoin to hit $48,000 when it was trading at $6,000 only a year ago?
Experts agree that there is still substantial upside to the price of bitcoin, so for the sake of our calculation, we will use five-year historical data to make our estimation.
For our five-year dollar-cost averaging amount estimation, we are looking at historical price data provided by DCAbtc.com.
According to DCAbtc.com, you would only need to invest $205 in bitcoin every week to end up with over $1,000,000 in bitcoin in five years, provided bitcoin manages to replicate its historical five-year returns.
$205 a week may be much for some, but if it means potentially becoming a millionaire in 5+ years time, it may be worth cutting back on other expenses, if you can.
Now, let’s look at how much bitcoin you would have to dollar-cost average on a monthly basis to hit $1,000,000.
According to DCAbtc.com, you would have to invest $890 a month for a five-year period to end up with over $1,000,000 in bitcoin, provided the last five years’ historical bitcoin returns repeat themselves.
So, there you have it.
If you buy $205 worth of bitcoin weekly or $890 worth of bitcoin monthly, you could become a millionaire in five years’ time.
But investing monthly is not as smart as investing weekly, says the data!
DCA Bitcoin Weekly, Not Monthly
The data shows that a once-in-a-month bitcoin investment would require you to invest more than a once-a-week bitcoin investment.
If you were to invest $205 a week as opposed to $890 a month, your annual dollar-spend on bitcoin would be less.
The reason for that is the compounding of returns. Compounding boosts your returns the more often you compound – provided, of course, the price goes up over time.
Therefore, it makes more sense economically to dollar-cost average bitcoin weekly as opposed to monthly.
How to DCA Bitcoin Using Relai
If you want to start putting 205 euros or Swiss francs into bitcoin each week to (hopefully) become a bitcoin millionaire in five or more years, you can set up bitcoin auto-investing using the Relai app.
Relai is Europe’s easiest bitcoin investment app that allows anyone in Europe to buy or auto-invest in bitcoin within minutes and without the need for ID verification.
Setting up auto-investing using Relai only takes three simple steps:
- Download the Relai mobile app
- Put in the amount of bitcoin you want to buy weekly or monthly and confirm the transaction
- Set up a recurring bank transfer to complete to auto-invest setup
And that’s it!
That’s how easy it is to start dollar-cost averaging bitcoin with Relai. Download Relai today and start your bitcoin investment journey.