Getting rich with Bitcoin: Is it still possible?

The crypto market continues to grow as it attracts investors small and large with the prospect of quick riches. The driving force behind this movement is Bitcoin, which has been around the longest and has already provided strong returns. But is it really that easy to get rich with bitcoin?

Goldmine sentiment is at an all-time high, and it's not just about bitcoin.

Much money needed to get rich with bitcoin

Now cryptocurrencies are just like any other form of investment, a matter of returns. Moreover, it is a very speculative market with strong fluctuations. For this very reason, it is difficult to make a good prediction about the development of the price. Nevertheless, after the developments of the last few years, it is a legitimate question whether you can become rich with Bitcoin.

• So it is about how much the money invested can still multiply.
• This is where the market capitalization comes into play. It indicates namely how much money must flow into the market so that the price increases.
• The Bitcoin already has a very high market capitalization, namely around 723 billion US dollars (as of the beginning of January 2021).
• This means: For the Bitcoin price to double, another 730 billion US dollars must be invested in the market.

However, a doubling is only enough for very few investors to become rich. For extreme returns, it is therefore more worthwhile to look at cryptocurrencies with significantly lower market capitalization. An example: If a coin has a market capitalization of 100 million US dollars, "only" another 400 million US dollars need to flow into the market to quintuple the price. The amount of money required is therefore significantly smaller - and this is what makes so-called altcoins so attractive.