- November 17, 2019
- Posted by: icoblock
- Category: Uncategorized
- You can retire today on 20-30 BTC depending on where you live
- 1 BTC, 32 ETH: it’s important to diversify
- Don’t count on Bitcoin to retire
- Is there a right answer or it’s all individual?
Bitcoin’s price has always been a hot topic within the cryptocurrency community. There are plenty of predictions on what it would be in the not-so-distant futures, and the estimates vary from $0 (from crypto skeptics) to $1 million by the end of 2020 coming from the popular proponent John McAfee.
With this in mind, a lot of people are banking on Bitcoin and its potential growth, investing in it as a means of long-term gains. As such, a well-known blockchain entrepreneur took it to Twitter to ask how much Bitcoin do people need to retire in 5 years? The answers are nothing short of exciting.
How many BTC should I hold to retire within 5 years?
— Crypto King (@JBTheCryptoKing) November 13, 2019
You Can Retire Even Today On 20-30 BTC
One of the first answers that came was that people can retire immediately, cashing out between 20 and 30 BTC in some places in Asia. This amount, at the time of this writing, adds up to between $172,000 and $258,000. This is what user TheLordofBTC thinks.
The case in point here is larger than the amount of BTC you need to retire. What’s implied is that it depends a lot on where you live and the standards at said location.
One of the most basic examples that could be given when comparing the different standards is the price of a single cup of coffee. According to MSN, a normal cappuccino in the US costs around $4 on average. The same cup of cappuccino in Indonesia, however, would cost you $1.9. Of course, that’s a broad example, but the gist is clear. One could retire with a certain amount of money in one country and with much less or much more in another.
1 BTC, 32 ETH, All Part of a Balanced Diet
Another interesting response, coming from a user called Kratzhor, was that you shouldn’t rely only on Bitcoin to make long-term gains. In this case, it doesn’t matter if it’s ETH or some other cryptocurrency, again, it’s the investment principle that should be considered.
A basic rule of thumb for everyone who’s investing is never to keep all your apples in one basket. In other words, it’s imperative to diversify your investment portfolio. This way, if some of your capital gets dragged down, the remaining part might be able to compensate for the losses.
What is more, you’re not banking on a single investment in Bitcoin. It’s well-known that the market is very volatile and things can quickly go south from one day to the other. This is why it’s essential to make sure that your investments are adequately hedged.
Don’t Count on Bitcoin to Retire
Of course, not everyone shares the same idea that one could retire on Bitcoin. There are skeptics, as well. Twitter user Crypto Silvers said that it’s very risky to put your retirement in something that’s not regulated. He also shared that he’d prefer to invest in low-risk options.
Indeed, the unregulated nature of Bitcoin could be considered a pressure point. Moreover, the market is still relatively young, and it’s a lot easier to manipulate it compared to established markets. This is the main reason for its volatility – people with large amounts of BTC, the so-called whales, could catalyze serious movements in its price.
Of course, it’s also important to consider the bigger picture. Bitcoin has a lot of prominent qualities, such as the fact that it’s digitally scarce, which would undoubtedly have an impact on its price in the future. A lot of people, including the Chairman of the US Federal Reserve, who think that Bitcoin is a store of value like gold.
Nobody Has The Right Answer
There’s a very obvious narrative going through the hundreds of answers below the question – all of them are different. And that’s perhaps the most valuable answer of them all – it’s all about personal perspectives.
Irrespective of what the price of Bitcoin will be five years from now, people have different life goals, different standards expectations. Some consider $1 million in cash to be enough for retirement, while others want this money per year. Some people live in well-developed first-world countries and pay a lot of money to cover their expenses, while others live in countries with lower standards.
No one can predict Bitcoin’s price. But even if someone could, there still wouldn’t be a right answer to that question simply because everyone’s expectations are individual.