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Author: Admin | 2025-04-28
Strategy of dollar-cost averaging. Simply stated, you would commit to investing a set amount into Bitcoin, every month, like clockwork, until you reach your $63,000 goal. So, for example, you might decide to invest $1,000 per month, every month, for the next five years. That would get you close to your $63,000 goal.Do you have a millionaire mindset?But, alas, being a patient, long-term investor is not the only part of becoming a Bitcoin millionaire. That's because Bitcoin is a very volatile asset, and price swings can be dramatic. Yes, Bitcoin has the potential to skyrocket in value, but it also has the potential to go on some epic portfolio-deflating losing streaks.In fact, Cathie Wood has documented at least four different "Bitcoin drawdowns" in which the price of Bitcoin fell by more than 77%. That includes the nightmare "crypto winter" of 2022, when Bitcoin absolutely cratered in value.So imagine a hypothetical scenario in which you had finally amassed $500,000 in Bitcoin holdings, well on your way to millionaire status. But what if the next year turns out to be a stinker, and you lose 77% (or more) of your investment? You'd be back to square one, trying to put together all the pieces of your shattered Bitcoin nest egg.That being said, I do think Bitcoin still has millionaire-maker potential. But the table stakes have increased markedly since Bitcoin first launched in 2009. Back then, you might have been able to become a millionaire with just a tiny investment of $1,000 or less. But now, given the elevated price of Bitcoin, you might need $63,000 or more to hit that mythical milestone.Should you invest $1,000 in Bitcoin right now?Before you buy stock in Bitcoin, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $578,143!*Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.See the 10 stocks »*Stock Advisor returns as of May 13, 2024 Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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