Topic: Why you can't be rich by owning crypto - page 5. (Read 981 times)
Simple answer is that you don't have a lot of cryptocurrency in the first place so you have to make do with what you currently own and you have to wait for the prices to astronomically go up before you can say that you are rich when you own a cryptocurrency and you also have to have a lot of cryptocurrency too before you to get the most out of the rise in price.
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As the value of Bitcoin increases, it's owners would have a reduced incentive to do their job, and they would retire at a younger age(since they would have enough money to live the rest of their life). This would decrease the global productivity, even if the demand remains same(or even increase due to increased wealth). This would in turn increase the price of all commodities almost at the same rate as that of Bitcoin(law of supply and demand)
Your post has a bunch of assumptions that simply won't happen in real world:
1.Bitcoin will never replace all the fiat currencies.Central banks won't allow this to happen.They need inflation.
2.Bitcoin owners won't decrease their productivity,because most of them don't have that much BTC.They must continue working their 9/5 jobs and maintaining their standard of living.
Do you think that every person,who owns BTC will become a millionaire at a young age,so he will retire and never work until the rest of his life?This seems like a joke to me.
I think this is completely wrong thought process. Apology for the harshness, but note that when global adoption will occur to bitcoin then it won't stop its productivity won't become stagnant with it BUT, it will enter into different realm of asset keeping. In fact with global adoption people would want more bitcoin and there will be limited one so "demand" for BTC will go crazy in those times. With out traditional system when there is more demand and less supply, the prices for those asset could go off the chart. The money is flowing because we are consuming electricity, generating heat, we are paying the electrical companies for the same.
Mining equipments come with the a price and paid in real money, taxes are levied on the same. So real money is flowing directly and indirectly to this on.
Mining equipments come with the a price and paid in real money, taxes are levied on the same. So real money is flowing directly and indirectly to this on.
You actually have a point there because every year the value of Bitcoin does increase and the supply and demand does change too. The things we need that are bought by Bitcoin or any other currencies also increases it's value. But if you have accumulated Bitcoin by other means, let's say you were paid from an employer using satoshis being converted from USD way back in 2017 and you haven't touched the amount being paid by you; the value of that amount that you were paid increases. So there is a possibility you could be rich by owning that amount of crypto too.
The value of Bitcoin have increased by 707% over the last year, and the average deflation is 96%
As the value of Bitcoin increases, it's owners would have a reduced incentive to do their job, and they would retire at a younger age(since they would have enough money to live the rest of their life). This would decrease the global productivity, even if the demand remains same(or even increase due to increased wealth). This would in turn increase the price of all commodities almost at the same rate as that of Bitcoin(law of supply and demand)
So even if your rich, and your net worth is increasing with increase in the price of Bitcoin, after everyone have adopted Bitcoins globally, even your richness wouldn't be that much rich, since the value of the things that can be brought with those bitcoins would actually grow the same rate as the bitcoin(due to decreasing productivity)
The illusion that the value of your Bitcoin wallet is increasing only works when you compare it with other currencies, and if every other currencies go extinct, the only way to measure our currency is by number of things that can be bought for one unit(purchasing power)
I'm not sure if that's how it works, correct me if I'm wrong(I'm not really an economist)
This argument is nothing new, we can distinguish between value and price, even if the price of bitcoin was one million dollars in the future it does not matter if you need that million to buy a sandwich so I get your point, but the purchasing power of bitcoin has been increasing during the years and the production of goods around the world is still increasing, and even if we came to the point in which there was such an economic crisis that reduced the economic activity by 90% or more we will still have the goods that were produced before that and you will still have a huge purchasing power under those circumstances. As the value of Bitcoin increases, it's owners would have a reduced incentive to do their job, and they would retire at a younger age(since they would have enough money to live the rest of their life). This would decrease the global productivity, even if the demand remains same(or even increase due to increased wealth). This would in turn increase the price of all commodities almost at the same rate as that of Bitcoin(law of supply and demand)
So even if your rich, and your net worth is increasing with increase in the price of Bitcoin, after everyone have adopted Bitcoins globally, even your richness wouldn't be that much rich, since the value of the things that can be brought with those bitcoins would actually grow the same rate as the bitcoin(due to decreasing productivity)
The illusion that the value of your Bitcoin wallet is increasing only works when you compare it with other currencies, and if every other currencies go extinct, the only way to measure our currency is by number of things that can be bought for one unit(purchasing power)
I'm not sure if that's how it works, correct me if I'm wrong(I'm not really an economist)
You have a point there but there is always an exemption. If one investor owns hundreds or thousands of bitcoin, he can actually live his whole life without worrying much about expenses. Even the commodities are continue to go high as you have said that bitcoin also continues to go up as well, as those of the needed things to buy like essential foods, etc then it will still be afford by an individual who have lots of bitcoin.
Things are changing, if bitcoin will gonna be adopted well in different countries, expect more develop and more improve bitcoin many years from now.
Things are changing, if bitcoin will gonna be adopted well in different countries, expect more develop and more improve bitcoin many years from now.
I agree with the idea but not really the reasoning behind it.
Most people accumulate wealth through doing something productive. BTC is designed to be a mere store of value. Sure, you can hedge your positions in fiat assets with BTC, but that will only preserve value as opposed to create any.
No one has ever gotten poor from owning gold, but no one has gotten filthy rich either.
Speculating in the crypto markets simply won't make you rich either in the long run. The markets are totally unpredictable and trying to generate stable returns is futile.
Most people accumulate wealth through doing something productive. BTC is designed to be a mere store of value. Sure, you can hedge your positions in fiat assets with BTC, but that will only preserve value as opposed to create any.
No one has ever gotten poor from owning gold, but no one has gotten filthy rich either.
Speculating in the crypto markets simply won't make you rich either in the long run. The markets are totally unpredictable and trying to generate stable returns is futile.
The value of Bitcoin have increased by 707% over the last year, and the average deflation is 96%
As the value of Bitcoin increases, it's owners would have a reduced incentive to do their job, and they would retire at a younger age(since they would have enough money to live the rest of their life). This would decrease the global productivity, even if the demand remains same(or even increase due to increased wealth). This would in turn increase the price of all commodities almost at the same rate as that of Bitcoin(law of supply and demand)
So even if your rich, and your net worth is increasing with increase in the price of Bitcoin, after everyone have adopted Bitcoins globally, even your richness wouldn't be that much rich, since the value of the things that can be brought with those bitcoins would actually grow the same rate as the bitcoin(due to decreasing productivity)
The illusion that the value of your Bitcoin wallet is increasing only works when you compare it with other currencies, and if every other currencies go extinct, the only way to measure our currency is by number of things that can be bought for one unit(purchasing power)
I'm not sure if that's how it works, correct me if I'm wrong(I'm not really an economist)
As the value of Bitcoin increases, it's owners would have a reduced incentive to do their job, and they would retire at a younger age(since they would have enough money to live the rest of their life). This would decrease the global productivity, even if the demand remains same(or even increase due to increased wealth). This would in turn increase the price of all commodities almost at the same rate as that of Bitcoin(law of supply and demand)
So even if your rich, and your net worth is increasing with increase in the price of Bitcoin, after everyone have adopted Bitcoins globally, even your richness wouldn't be that much rich, since the value of the things that can be brought with those bitcoins would actually grow the same rate as the bitcoin(due to decreasing productivity)
The illusion that the value of your Bitcoin wallet is increasing only works when you compare it with other currencies, and if every other currencies go extinct, the only way to measure our currency is by number of things that can be bought for one unit(purchasing power)
I'm not sure if that's how it works, correct me if I'm wrong(I'm not really an economist)
Well there is some truth buried in the argument you make.
It boils down to the fact that btc will only make some people rich.
So you need to tease out your idea and say BTC can only enrich a small percentage of the world.
pretend that to keep coins flowing they decide to take back stale accounts. This could recover one or two million untouched coins. Much like a bank closes account that have not been used for 20 years or so.
Next thing is calulate the worlds wealth at 210 trillion. (easy math)
so in 20 years the world moves To 420 trillion wealth.
say 210 trillion is btc
21,000,000 x 10,000,000 is 210,000,000,000,000 or 210 trillion
or half the money in the world.
so if the coin was spilt even 21 million people with 1 btc worth 10 million
that 10 million is worth about 5 million now.
What do i think would happen if 21 million people had 5 million right now.
It would be like you say wealth would shift.
But what will happen is the 21 million coins will not be spread like just said.
a few will have 100 or 200 or 1000 coins.
and a more will have 5,10,20
some will have .5 or 1
and a lot will be much smaller
so maybe only 10000or 20000 end up rich.
not 21 million
so huge demand will not happen since it wont be a huge amount of rich people .
I am not sure that everybody that is entering this crypto world is only focusing on investment, I mean long-term investment.
Commonly, if they are a long-term holder or investors, they will put the money and then let it be until higher and higher ATH again in a certain period. And they'll focus again on the real-world activities. However, if they are not only long-term investors, they will prefer to trading. And this doesn't mean to reduce the productivity and making rich based on the bitcoin value. You know wow many jobless in this world and how difficult seeking for job moreover this recent pandemic? \
The Crypto world is really helping us to recover our life from suffering from jobless and having no money in the real world. And traders commonly will also cash out for their life necessities or using it for business in the real world.
Once more, getting into crypto doesn't mean that we are not productive anymore.
Commonly, if they are a long-term holder or investors, they will put the money and then let it be until higher and higher ATH again in a certain period. And they'll focus again on the real-world activities. However, if they are not only long-term investors, they will prefer to trading. And this doesn't mean to reduce the productivity and making rich based on the bitcoin value. You know wow many jobless in this world and how difficult seeking for job moreover this recent pandemic? \
The Crypto world is really helping us to recover our life from suffering from jobless and having no money in the real world. And traders commonly will also cash out for their life necessities or using it for business in the real world.
Once more, getting into crypto doesn't mean that we are not productive anymore.
If there are people who fail to get rich after owning Bitcoin, means that the person does not have a large amount of Bitcoin or the person is
not holding Bitcoin for a long time. Because the key to the success of getting rich from Bitcoin is how long we are able to hold Bitcoin.
Therefore most of those who became rich because Bitcoin were early adopters, who bought Bitcoin when the price was cheap. So if we really
want to get rich from Bitcoin, the way is very easy we can start collecting Bitcoin from now in accordance with our financial capabilities and
do not sell it for the next 10 years. I am sure that we will get rich after 10 years, most people want to get rich from Bitcoin instantly and don't
want to go through a long process. So it is only natural that such people will fail to get rich, even though they own Bitcoin.
This is a nice argument, although of course if we are to follow the current price graph we have of bitcoin, we can expect virtually everyone's holdings to actually appreciate significantly. Also, inflation happens and had happened even before bitcoin was created? Who can say it is at fault for the current rate at which inflation is booming? That does not sound like a wise argument at all. not holding Bitcoin for a long time. Because the key to the success of getting rich from Bitcoin is how long we are able to hold Bitcoin.
Therefore most of those who became rich because Bitcoin were early adopters, who bought Bitcoin when the price was cheap. So if we really
want to get rich from Bitcoin, the way is very easy we can start collecting Bitcoin from now in accordance with our financial capabilities and
do not sell it for the next 10 years. I am sure that we will get rich after 10 years, most people want to get rich from Bitcoin instantly and don't
want to go through a long process. So it is only natural that such people will fail to get rich, even though they own Bitcoin.
If there are people who fail to get rich after owning Bitcoin, means that the person does not have a large amount of Bitcoin or the person is
not holding Bitcoin for a long time. Because the key to the success of getting rich from Bitcoin is how long we are able to hold Bitcoin.
Therefore most of those who became rich because Bitcoin were early adopters, who bought Bitcoin when the price was cheap. So if we really
want to get rich from Bitcoin, the way is very easy we can start collecting Bitcoin from now in accordance with our financial capabilities and
do not sell it for the next 10 years. I am sure that we will get rich after 10 years, most people want to get rich from Bitcoin instantly and don't
want to go through a long process. So it is only natural that such people will fail to get rich, even though they own Bitcoin.
not holding Bitcoin for a long time. Because the key to the success of getting rich from Bitcoin is how long we are able to hold Bitcoin.
Therefore most of those who became rich because Bitcoin were early adopters, who bought Bitcoin when the price was cheap. So if we really
want to get rich from Bitcoin, the way is very easy we can start collecting Bitcoin from now in accordance with our financial capabilities and
do not sell it for the next 10 years. I am sure that we will get rich after 10 years, most people want to get rich from Bitcoin instantly and don't
want to go through a long process. So it is only natural that such people will fail to get rich, even though they own Bitcoin.
Inflation happens with or without bitcoin, you know what makes it happen? Overconsumption, unlivable wages, and low quality of life. With these three persisting to exist in the modern age, bitcoin or without, commodity prices will still balloon over time. What bitcoin does is help those who were wise enough to trust it to not feel the effects of these inflations, even just for a bit. So to make it out as if bitcoin's global adoption will commence complacency among people is not wise of an argument in my opinion.
For example, let's say, you have 10 BTC and a pizza cost 0.001 BTC, after an year not only the value of you 10 BTC increases, but also that of the pizza. So relative to the pizza your BTC value haven't increased at all
Bitcoin is basically a digital asset like gold and not a stable currency like fiat so it is very difficult to compare it with the USD.
I'm not sure if that's how it works, correct me if I'm wrong(I'm not really an economist)
because you are a newbie who creates a new account here and not an economist either, all you have to do is learn about the history of Bitcoin and do not draw conclusions based solely on your views.Because 10 btc was not worth anything then, there was no higher usd value attached to it, so it was easy to spend 10 btc for pizza,
The higher the value of the btc the lesser will be the amount in sat you will get, not just pizza alone, even here in forum, many members donate huge amount of btc to the forum because the value was ridiculously cheap or worth nothing, compare to now where every sat counts.
"Why you can't be rich by owning crypto" is not true. There are plenty of people who made vast sums of money from Bitcoin and other cryptocurrencies. The key is rebalancing - if say 10 years ago you somehow decided to buy 100 Bitcoin and held on to them up until today then you really need to diversify. You could easily sell 50 or even 75 of those bitcoin, which could be used to buy stocks, property or precious metals. That way you have the best chance of retaining wealth and let's use stocks as an example. Shares in certain companies will sometimes pay out a certain percentage of profits in the form of dividends, if you own enough shares it is possible to live just on those dividends without spending any of your original investment. If you pick the right companies then they will increase those dividends over time (as earnings increase) and the share price will also go up. Diversity is basically key to retaining and building wealth, while also protecting you from shocks if certain assets take a tumble.
Buying 1 Bitcoin doesn't make you rich, it just made you a Bitcoin owner. You could only be rich if you'll know what to do in that 1 Bitcoin, for example is use it up on Trading by buying other altcoins and trade it until your body drop every single day, make profits until you're satisfied. I know trading is not easy but that's how you'll be rich, or just simply hodl your Bitcoin.
Owning cryptocurrency means your steps ahead already from everybody who don't own any cryptocurrency, so don't belittle the capability of Bitcoin and other cryptocurrency.
At least Bitcoin and other cryptocurrencies provide confidence and the opportunity not only to become financially independent, but also to improve their financial condition. Achieving wealth is a loose concept, because everyone has their own subsistence level.Owning cryptocurrency means your steps ahead already from everybody who don't own any cryptocurrency, so don't belittle the capability of Bitcoin and other cryptocurrency.
Indeed, it's providing opportunities to those who understand how valuable crypto can be, a lots of investors already testefies with
how crypto changed their financial state.
Looking into persfectives, you just need to have a positive point of views in order to enjoy what crypto can bring you, knowing each
advantages and how to harvest are really an achievement.
Buying 1 Bitcoin doesn't make you rich, it just made you a Bitcoin owner. You could only be rich if you'll know what to do in that 1 Bitcoin, for example is use it up on Trading by buying other altcoins and trade it until your body drop every single day, make profits until you're satisfied. I know trading is not easy but that's how you'll be rich, or just simply hodl your Bitcoin.
Owning cryptocurrency means your steps ahead already from everybody who don't own any cryptocurrency, so don't belittle the capability of Bitcoin and other cryptocurrency.
At least Bitcoin and other cryptocurrencies provide confidence and the opportunity not only to become financially independent, but also to improve their financial condition. Achieving wealth is a loose concept, because everyone has their own subsistence level.Owning cryptocurrency means your steps ahead already from everybody who don't own any cryptocurrency, so don't belittle the capability of Bitcoin and other cryptocurrency.
Crypto that value for any normal person to become rich. Only thing you should be able to identify the good coin at low value and hold it till you get rich or when it is near high and sell and make money. Surely, atleast people do well when they have good crypto coins with them and rise when the bitcoin rises which help them to make money.
You are talking based on assumption that everyone will be rich owing bitcoin and retire. This is not possible. Since the creation the owe system is rigged. We all live in a centralized world and this is the reason why we have both the rich and the poor. It is not possible for everyone to be rich just the way everyone can't get rich hodling bitcoin. And about productivity being reduced because people will stop working, I hope you know the world is moving and automation and robotics is the order of the day in many manufacturing company. The rate at which robots are replacing human work force is growing so productivity will not reduce
Buying 1 Bitcoin doesn't make you rich, it just made you a Bitcoin owner. You could only be rich if you'll know what to do in that 1 Bitcoin, for example is use it up on Trading by buying other altcoins and trade it until your body drop every single day, make profits until you're satisfied. I know trading is not easy but that's how you'll be rich, or just simply hodl your Bitcoin.
Owning cryptocurrency means your steps ahead already from everybody who don't own any cryptocurrency, so don't belittle the capability of Bitcoin and other cryptocurrency.
At least Bitcoin and other cryptocurrencies provide confidence and the opportunity not only to become financially independent, but also to improve their financial condition. Achieving wealth is a loose concept, because everyone has their own subsistence level. Owning cryptocurrency means your steps ahead already from everybody who don't own any cryptocurrency, so don't belittle the capability of Bitcoin and other cryptocurrency.
Bitcoin's growth will definitely affect the value of the items that can be bought with it together with its equivalent value on other currencies. Maybe you can't be considered rich in crypto regardless of the amount of your bitcoin holdings but as long as you continue to earn more, it will soon open up opportunities to you wherein you can showcase how wealthy you became because of crypto. Many people are missing the point and the difference between owning a crypto and knowing what's best to do with all the crypto you currently own. Be smart and wise with the use of crypto, someday sooner you will know its value and you will definitely be considered rich.
Buying 1 Bitcoin doesn't make you rich, it just made you a Bitcoin owner. You could only be rich if you'll know what to do in that 1 Bitcoin, for example is use it up on Trading by buying other altcoins and trade it until your body drop every single day, make profits until you're satisfied. I know trading is not easy but that's how you'll be rich, or just simply hodl your Bitcoin.
Owning cryptocurrency means your steps ahead already from everybody who don't own any cryptocurrency, so don't belittle the capability of Bitcoin and other cryptocurrency.
Owning cryptocurrency means your steps ahead already from everybody who don't own any cryptocurrency, so don't belittle the capability of Bitcoin and other cryptocurrency.
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