Scenario 1: pure capital gain:
In our first scenario, we’re going to rely entirely on the price increase in Bitcoin to generate capital gains.
At the end of our investment period, we will re-invest our full capital in a high dividend stock yielding 4% annually. To achieve £36k passive income at 4%, our capital invested would be as follows:
36 / 0.04 = $900k
So, how can we gain $900k through Bitcoin investing?
In reality, no one knows if the price of Bitcoin will go up or down, but some predictions have it reaching $500k per coin by 2030. That’s roughly a 10x (or 900%) increase compared to the current price.
Since the price of Bitcoin will be going up, the amount we can afford to buy each year will go down. So for $500 per month in year 1, we can buy 0.01 Bitcoin. In year 10, we can buy 0.001 Bitcoin.
This gives us the total affordable Bitcoin purchase over 10 years, approximately as follows:
(0.01 + (0.01/2) + (0.01/3) + (0.01/4) + (0.01/5) + (0.01/6) + (0.01/7) + (0.01/8) + (0.01/9) + (0.01/10)) × 12 = 0.3515 BTC
Since in 10 years, we estimate the price of Bitcoin will be, $500k, this gives us a total capital at the end of that period of:
0.3515 * 500000 = $175,750
Not bad, but it’s not going to pay the bills.
Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://medium.datadriveninvestor.com/how-to-become-rich-with-bitcoin-421f6a5780ca?source=rss——-8—————–cryptocurrency
