This is how easy it is to become a millionaire with cryptocurrencies!

Before I get into today’s topic of the newsletter, I would like to write a few sentences in advance on this subject. At first glance, the headline sounds very lurid, of course. On the other hand, however, one can also ask the question what it is worth to be a millionaire these days anyway. Because in the People’s Republic of China alone, there were 365 bitcoin transactions last year.000 new millionaires, so that managed there about 1.000 people per day.

The key word here, of course, is inflation. As is well known, the central banks last defined monetary stability as an inflation rate of below, but close to, two percent per annum. It doesn’t sound like much at first, and in a single year it is. But if you extrapolate that, at an inflation rate of exactly two percent per year, the average citizen loses a fifth of his purchasing power within a little more than eleven years.

Since this is an exponential function – which, due to the Covid 19 pandemic, almost everyone is probably familiar with by now – it actually becomes more and more critical the longer it lasts. At an inflation rate of two percent per year, the average citizen loses half of his purchasing power within 35 years. Or to put it in other words: With an inflation rate of two percent per year, a current euro millionaire would be comparable to a DM millionaire anno 1985/1986.

It’s probably worse than that!

But it is probably even worse. Thus, it is said behind closed doors that – due to inflation – prices double approximately every ten years. If that were the case, we would have an inflation rate of about 7.2 percent per year. This seems to be a bit of an exaggeration. However, in my opinion – and not only in my opinion – the official statistics are also somewhat low, not to write embellished.

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Presumably, the real inflation rate is somewhere between three and five percent per year. This means that a Euro millionaire today would be equivalent to half a millionaire in 1985, which I think is quite realistic. But we don’t have to find out that exactly either. Because from my point of view, it is primarily important to take along that the monetary value of the so-called fiat money – unlike most cryptocurrencies – constantly reduces.

When you think about it, it quickly becomes clear why investors absolutely need a small cryptocurrency portfolio. Or gladly also a somewhat larger. Ignoring Bitcoin (BTC) and Co. definitely not. Otherwise you make a big mistake, possibly even the biggest mistake of your life! No matter what one or another – often self-proclaimed – expert thinks about it…

That’s how easy it was to become a millionaire with cryptocurrencies…

So we agree that nowadays (unfortunately) it’s not that difficult to become a millionaire anymore. We also agree that hoarding cash won’t make you one anyway. With the hoarding of one or the other cryptocurrency, be it the Bitcoin (BTC) itself or be it Ether(eum) or also some others, it was in the past against it quite easily possible.

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Here’s how, when bitcoin (BTC) first launched, one U.S. dollar got you more than 1.200 Bitcoins, which today at a Bitcoin price of 17.500 US dollars would be worth no less than 21 million US dollars. Or, again, doing the math the other way around: The 57 or so bitcoins you would still need to have today to own a million U.S. dollars (in bitcoin (BTC)) would have cost you less than a paltry five cents at the time.

There you can see how right my grandma was with her proverb: "He who does not honor the penny, is not worth the thaler!" yet had. But with that, I’d like to end the "coulda, woulda, if" game in this newsletter. Because it should have become clear to every reader that you could already become a millionaire with cryptocurrencies in the past, first and foremost with bitcoin.

And how you can still become a millionaire with cryptocurrencies

But how can you still become it now? Well, for this there are two possibilities at once. The first and easiest is to buy at least one Bitcoin (BTC). You don’t have to buy this right away at prices a little over 17.Transact $500. Possibly one comes again to somewhat lower courses to the train. But if that is the case, it is called to be brave and strike.

Because in the longer term, this means on a view of 15 to 20 years, I still trust the Bitcoin (BTC) a price target of one million US dollars. The irony of fate would be that then a Satoshi (which is the smallest unit of Bitcoin and corresponds to 0.00000001 Bitcoin) would correspond exactly to a cent. This way is, as written, the easy way, but you need a certain amount of time.

Faster, on the other hand, is to look around the crypto space for alternatives to Bitcoin (BTC). There are some and unfortunately 98 percent of these alternative coins (Altcoins) are also junk. But Ether(eum) (ETH), Chainlink (LINK), Polkadot (DOT) and Co. I wouldn’t put it past them to go through the roof in the long run in much the same way that the "mother of all cryptocurrencies," bitcoin (BTC), did.

Who therefore currently owns Bitcoin (BTC), should in principle absolutely stay on board. But reducing your position in the "mother of all cryptocurrencies" a little bit on strong days and buying good altcoins with the freed up money, I think is a smart idea. Because until the summer, the altcoins were still leading the crypto price rally, then Bitcoin (BTC) took over most recently.

I therefore expect sooner or later – but definitely in the course of the second wave of the DeFi boom – a comeback of the Altcoins. Especially since the Bitcoin (BTC) not only seems to be running hot slowly, but also should have difficulty generating a new all-time high for the time being. Clever investors therefore act, also on the crypto markets, anticyclical! And become millionaires faster..

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