TLDR: Bitcoin’s scarcity, with a max of 21 million, makes owning it valuable; aim for 0.01 to 1 BTC as a long-term investment
This article is a summary of a You Tube video “How Many Bitcoin Should You Own?” by The Modern Investor
Key Takeaways:
- Do Your Own Research: The importance of conducting personal research before investing in cryptocurrency like Bitcoin is emphasized.
- Bitcoin’s Limited Supply: There’s a maximum of 21 million bitcoins, making it a scarce resource.
- Distribution of Bitcoin: If distributed evenly across the global population, each person would get approximately 0.003 Bitcoin.
- Holding 0.28 Bitcoin Puts You in the 1%: Owning about a quarter of a Bitcoin places you in the top 1% of Bitcoin holders worldwide.
- Bitcoin’s Scarcity and Accumulation by Wealthy Individuals: Some of the richest people are accumulating large amounts of Bitcoin, highlighting its scarcity and potential value.
- Halving of Bitcoin Creation: The rate of new Bitcoin creation halves approximately every four years, increasing scarcity.
- Advice to Obtain Bitcoin: The speaker suggests striving to own at least 0.01 to 1 Bitcoin, depending on financial ability.
- Long-term Value Projection: Bitcoin is seen as potentially reaching very high values in the future, possibly becoming a major global currency.
- Institutional Investment and Support: The growing interest and investment in Bitcoin from large financial institutions and countries.
- Bitcoin as a Future Currency: There’s a belief that Bitcoin could become a dominant currency, particularly in the digital realm.
