February 20, 2024

How many bitcoins will provide you for life?

How many bitcoins will provide you for life?

The price of Bitcoin is always a hot topic in the cryptocurrency community. There are manyforecasts regarding how the BTC will be in the near future; his valuations range from $ 0 (from cryptosceptics) to $ 1 million by the end of 2020 (from a popular supporter of John McAfee).

With that in mind, many people rely onBitcoin (BTC) and its potential growth, investing in it for profit. In this regard, the well-known blockchain entrepreneur decided to find out on Twitter how many bitcoins people need to retire in 5 years? The answers are amazing.

You can retire today with 20-30 BTC in your pocket

One of the first answers says that peoplethey can retire right now, having cashed the amount in the range from 20 to 30 BTC, if they live in certain areas in Asia. This amount at the time of writing is from $ 172,000 to $ 258,000. So says the user TheLordofBTC.

The point here is not only the amount of BTC you need to retire. It is understood that this largely depends on your place of residence and local standards.

One of the easiest examples you canlead when comparing different standards, is the price of one cup of coffee. According to MSN, a typical cup of cappuccino in the United States costs about $ 4 on average, but the same cup of cappuccino in Indonesia will cost you $ 1.9. Of course, this is a crude example, but the essence is clear: you can retire with a certain amount of money in one country and with a much smaller or much larger amount of funds in another.

Balanced portfolio — 1 BTC and 32 ETH

Another interesting answer coming fromKratzhor’s user experience is that you shouldn’t rely on Bitcoin alone for long-term benefits. In this case, it does not matter whether it is Ethereum (ETH) or any other cryptocurrency, but again, this is an investment principle that should be taken into account.

The basic rule for everyone who invests money is— Never keep all your apples in one basket. In other words, you need to diversify your investment portfolio. This way, if part of your capital experiences a recession, the rest can compensate for the losses.

Moreover, one cannot count on investment inBitcoin alone. It is well known that the market is very unstable, and everything may not be on this, or it will go wrong on another day. This is why it is important to ensure that your investment is adequately protected.

When retiring, do not rely entirely on bitcoin

Of course, not everyone shares the idea that you can leave forretirement on bitcoin alone. There are also skeptics. Twitter user Crypto Silvers said it’s very risky to take your pension to something that is not regulated. He also shared his opinion that he would prefer to invest in low-risk assets.

Indeed, the unregulated nature of Bitcoincan be considered a negative point. Moreover, the market is still relatively young and much easier to manipulate than existing markets. This is the main reason for its instability — people with large amounts of BTC, so-called whales, can catalyze major price changes.

Of course, it is important to take into account the big picture. Bitcoin has many outstanding qualities, for example, it is scarce, which will undoubtedly affect its price in the future. Many people, including the chairman of the US Federal Reserve, believe that bitcoin is the same store of value as gold.

No one has the right answer.

There is one obvious thing, a red threadgoing through hundreds of answers to this question — different people have different opinions. And this is perhaps the most valuable answer of all those presented, it’s all a matter of personal views.

No matter what the price of bitcoin will beafter five years, people have different life goals, different expectations by standards. Some believe that $ 1 million in cash will be enough to retire, while others want to receive this money annually. Some people live in developed countries and pay a lot of money to cover their expenses, while there are places with lower standards.

From all the answers, we can conclude that for all the difficulties of forecasting prices, requests are also individual, which is why there can be no general answer.