WILL OWNING 1 BTC MAKE GENERATIONAL WEALTH?

[uneng]

Will owning 1 btc make generational wealth?

I don't think so. 1 BTC isn't enough money to live an entire life. It's just enough to acquire yourself a house, but not even enough to completely repair and maintain it along the years. Moreover, it really depends when you purchased that 1 Bitcoin, because if you bought it for 30,000$ or 40,000$ recently, your profit margin will be much lower compared to an early investor who is holding Bitcoin since it was pricing less than a thousand dollars.

I would say 1 Bitcoin is a very good sum of money to work with in an attempt to grow it into larger sums of money and a larger patrimony. If you are successful doing this, then you can achieve a generational wealth. However, keep in mind it's a continuous process, where you have to be constantly adapting yourself to the current reality and demands of the worlds.

You have to be an attentive person to the events and tendencies going on the world to protect your patrimony against the threats imposed by economical crisis and conflicts which may affect you at some point.

[nelson4lov]

The question of whether or not 1 BTC can be worth generational wealth remains to be seen. The current price is already a substantial amount in developing countries but it is still no where near generational wealth. The only way one bitcoin will pass for generational wealth is if the price of Bitcoin goes to 7 figures or more.

I can give you a few examples of generational wealth outside of bitcoin.
I know people who bought real estate for $10k 20 years ago and it's now worth $100k and is most likely going to to appreciate even more... unless there's war.
People who had real estate in Donbass probably regret not selling it a few years ago.

~Snipped

This example is valid and only confirms what I said. Whoever gets to buy bitcoin at $500, $1K, $10K, $20k, etc will say it is generational wealth only if the price is between 7-8 figures similar to your real estate example that worth more over time.

[franky1]

if you had a kid today and sold your  1BTC($64k) and put the fiat into stocks/shares at a 8% interest
by the time your child was 20yo the investment would cumulate to $276k which you can then pay them $22k a year and keep the $276k capital

Isn't that simple.

You need to pay from $22K a year capital gains, which is 11% for short term capital gains tax. So you only have $19.5K, we shouldn't forget with the inflation rate too, $276K capital today isn't same to $276K capital in the last 20 years. On paper your investment grow 4x times, but in purchasing power your investment only grow 1.5x times.

$19.5K a year in US is small, imagine you've invest for 20 years, but you still not able to live from your investment.

lets start at the end then work up
yes $22k is not enough to live on.. that was the point it was that taking 1btc OUT OF bitcoin and putting it into common shares would not lead to generational wealth

now handle your numbers about cap gains
people are given an allowance of tax free income before being taxed.
so lets handle the actual numbers

64k turning into 276k is a 4.3125x gain
meaning of 22k withdrawal its only really $5.1k of initial investment withdrawal(of the initial 64k) and the other 16.9k is the gain which we now have to deal with the tax rate

its firstly not short term as the shares were held for 20 years not 1 year.
secondly the total income claimed (realised value) is $22k which, and ill quote

Source: Internal Revenue Service
Long-term capital gains tax rates for the 2024 tax year
FILING STATUS    0% RATE       15% RATE          20% RATE
Single          Up to $47,025       >$47,025

so because the income is under $47k(the $22k withdrawal) its in the 0% cap gains tax percentile

..
but back to my first line of response.. we can both agree that taking funds out of bitcoin and using it for common shares for inheritance, no it wont generate 'generational wealth'

[Adbitco]

Will owning 1 btc make generational wealth?

When talking about generational wealth is not about 1 bitcoin so to me one bitcoin can't make a general wealth coupled with the price currently. To me generation wealth is a wealth that can not be exhausted by your children, or your children children upto the 4 to 5th generation are the kind of wealth i assumed to be called a generation wealth. But however, one needs at least 100 to 10k bitcoin to say they have a generational wealth if carefully and properly being used.
What creates a generational wealth is a running real estate, shares in a company as well having some thousands of bitcoin. But say one bitcoin, except you won't temper the investment for the rest of your life.

I think the op wasn't looking at the present price of bitcoin, before asking the question. I believe that he is looking at the future price of bitcoin. A future where the bitcoin price might have skyrocketed to a price above $1m and beyond.  To me it all depends on the price that bitcoin will be before my children takeover from me. We never can tell what price that bitcoin will get to. Bitcoin could get to 1 billion dollars in the future, you never can tell. If it does that, it simply mean that 1 bitcoin can make a generational wealth.

Well i know there is every possibility and with cryptocurrency it could be possible, but one has to wait for decades maybe for additional 20 to 40 years for that to effectualized and come to reality. But then have you also considered the inflation rate what could be the future then, i know price of commodity are increasing unbearably just as we do cry for inflation, have you also considered what the future would look like compared now. 15 years ago people who were earning $3k are seems to be pretty much wealthy but in today's economy that amount seems to not enough even afford bills and expenses after paying taxes for those in the countries that pays taxes from every little bit of their income that gets to their accounts.

[SickDayIn]

One point of difference Id like to share with others have swiftly moved over. Generational wealth implies that the capital invested can l as st for many decades, and still be able to be used to fund a lifestyle (income needs to be generated annually). Investing in stocks or ETFs, can allow income be generated without needing to sell the underlying units. However, Bitcoin on its own does not generate income. The Bitcoin needs to be sold in order for the income to be generated, through capital appreciation. So therefore, for Bitcoin to create generational wealth, it needs to be possible for it to increase in value so significantly that slowly selling it year by year to generate income, does not decimate the total capital value. I feel it's difficult for this.

[Apocollapse]

What you say is not even close to the real life situation.
Even the current value of 1 BTC is too high for many countries. For example, if a minimum wage worker in my country uses all his money to buy Bitcoin and there is no inflation and no price change, he can only have 1 BTC in 11 years. You can understand how big this amount of money is from here. And that's not even taking into account the future value of Bitcoin. Owning 1 BTC is enough to create a generational wealth.

Being a generational wealth isn't for Average Joe, not all people can be rich, it always a zero sum game.

If Average Joe in your country need to get 1 BTC in 11 years, I live in a country where the Average Joe in my country need 30 years to get 1 BTC.

1 BTC is really big, but if you're a father of two sons, having a serious disease, etc etc, that 1 BTC is just like an emergency funds, not something like you can live comfortable without need to work.

After all no one force to work in third world countries, they can move to other country to earn more.

[MeGold666]

Amount of money doesn't matter if you can't manage it properly, regular Joe will spend 1 million USD so fast he won't even know when it disappeared.

The best investment you can make today is to learn living on a lower level than the one you can actually afford.

If you want to leave large amount in BTC for your kids or grand kids, be sure they first learn this or this money will make more harm than good to them.

With this in mind, even lesser amounts can be seen as wealth because wealth is just a status of being somewhat independent.

For example if you have $100k stored and boss or other workers in your daily job starts to be unruly you can just quit and have plenty time to search for new job.
You will use some of that cash to survive that period with grace then you should replenish it when you get a new job or start new business.

Wealth is not driving latest cars and flashing your Rolex through the window like media pictures it.
Wealth is peace of mind.

If you have enough money to be "flashy" go ahead, but it shouldn't be more than 10% of your wealth.
Most "flashers" you see in your city are not wealthy.

How high this amount needs to be depends on the life style and country you live, for some being wealthy can be as low as $10k.

It's not easy to control your spending when you can afford whatever you want, for me it had to be a hard lesson of getting broke two times in my life.
Now if you want to live out of your wealth for the end of your days, this has to be really substantial.
There are always some unforeseen expenses in your life (health issues, repairs etc).

Check how much you spend yearly and multiply by the years you'll be living then multiply it by 2x because inflation is a bitch.
That's how much you need to live from it on the same level you are living right now.

[Cookdata]

Will owning 1 btc make generational wealth?

If you have hold one when it was some scent or a dollar, I will say you are on your path to that road and will become when it got a million dollar investment but buying one Bitcoin at $62k, that means you really have money on you. If anyone can comfortably buy Bitcoin at the price it's trading right now, that means the person can leave above average life comfortably, going to wealth level with 1 Bitcoin isn't something that I can, that's can't be a generational wealth to you.

If you want to have a generational wealth, don't buy 1 Bitcoin, buy as much Bitcoin you can get your hands on, send them to a personal wallet and preferably a hardware wallet for high safety and hold them tight as long as you are alive, they will give you what you have always wanted. If you can get as much as many Bitcoin, not only generation wealth, you will be among those wallet that will study as rich wallet address or addresses.

[MeGold666]

If you want to have a generational wealth, don't buy 1 Bitcoin, buy as much Bitcoin you can get your hands on, send them to a personal wallet and preferably a hardware wallet for high safety and hold them tight as long as you are alive, they will give you what you have always wanted. If you can get as much as many Bitcoin, not only generation wealth, you will be among those wallet that will study as rich wallet address or addresses.

Thank you for your free price prediction! I wouldn't be so sure even when it comes to Gold but hell, if you say so! Cowabunga!

[STT]

the next market cycle could be more then $276k

People who argue over 100k as if its distant and a great high I think are off their aim so I agree more with this size target.  If BTC goes up that far, its also realistic to say BTC will lose alot of those gains later.  As we have seen many times to rise this much is  possible but  often also realized only as a fleeting high point.   2021 was a bit different in that it reached such a high point twice at different parts of the year but its still true alot of the gains fell away.

Its not reasonable to discuss generational wealth for an asset which can half in price within that same year.   Its not a steady target, I hope BTC expands its base and stability within its own economy not just relying on constant Dollar weakness.   Dont own only one asset type when you talk about supporting the next generation or building up wealth.

Most Bitcoin holdings don't have any yield to them, they are a speculative commodity hold.   I wouldn't fully describe that as wealth as your everyday benefit is not immediately beneficial you have to sell to call it a gain.  Ideally you can both own the asset and also benefit from it; it all has to be part of a whole range of activity and investment assets.

  Some people sold their house to buy BTC, I remember a few people did that and there was a famous thread on here about it but mostly I would argue own a solid asset like house or flat and also BTC, don't gamble on the next cycle singularly.


The answer to OP depends on how widely used you think BTC will gain in its market audience.   If billions of people were using BTC then 21m available will result in a very high price, more then a large house even in a city I think would result.

If only 1 in a thousand people regularly uses BTC then reduce your estimate lower as that'd be like 3.5 BTC for each of those people to use.   Most people discuss BTC as if the entire world will use it as their only money, its somewhere in between and thats where the price will be decided.   Actual productive assets always will rate over currency of any kind imo.

[DeathAngel]

Will owning 1 btc make generational wealth?

It will some day but not for a while. Absolutely though, we should all be doing everything we can to buy as much Bitcoin as possible whilst the price is still somewhat low. Due to its deflationary supply mechanism, Bitcoin is designed to go up forever. We may see $1,000,000 per coin in 20-30 years so it makes sense to buy as much as possible as regularly as possible.

[Obim34]

Will owning 1 btc make generational wealth?

I will say depends on the region or country, with the current price of Bitcoin at $60k+ it's already a huge money when converted to some nations currency but to some it is just what an average person might accumulate over some period of years and may not see it as much money to foster generations to come. Owning 1 Bitcoin may or may not also depending on how the portfolio is being managed, if done carelessly then it is not but when accurately managed from approaching other options then it can be a start up capacitor for generational wealth.

[Silberman]

Will owning 1 btc make generational wealth?

Doubt it, one bitcoin is without a doubt a nice amount of money to pass to your loved ones, but in many countries that amount is not even enough for the down payment of a house, and while the value of bitcoin has very reasonable chances to keep growing, it is not as if whoever gets to inherit that bitcoin gets stock dividends or something similar, so if you want to use some of that wealth, you need to sell the corresponding amount of bitcoin and only if you use that money for a profitable activity, you could buy again the amount of bitcoin that you sold.

[Franctoshi]

Will owning 1 btc make generational wealth?

This question to me don't even need one to think about it twice to be able to  say the answer if you have been part of the crypto community for some time now, you would definitely know that being able to own 1 Bitcoin would evely help you be OK, but I would say wealthy some people are already wealthy before buying Bitcoin, but if we are looking at it in this category of an average investor base perspective, and using the historical incredible performances of Bitcoin to judge, the answer is yes , you can be wealthy just by holding 1 BTC, only if you're patient enough to Hodle.

[Kemarit]

Will owning 1 btc make generational wealth?

If Bitcoin will be the only source for you to acquired wealth thru generations, I don't think that 1 Bitcoin is going to be enough. When you talk about generational wealth, something that will give you money for the rest of your natural life and then on the next generation and so forth.

What Bitcoin can give is financial freedom, and then you can slowly build your portfolio from their, so not just on Bitcoin or any other crypto assets that you are going to invest from the money that you build from your initial Bitcoin investment, but you have to ventured on other assets and then established your own business and be a entrepreneur, against have multiple source of income to build a money across your family's generation.

[Don Pedro Dinero]

Of course, as long as you don't make a fool of yourself. In fact, someone who lives in the countries with the lowest per capita income in the world and has a bitcoin can already be considered rich there, and for that wealth to be generational all they have to do is not spend it, or spend satoshis only as the price rises so that you maintain or increase your purchasing power despite spending part of your bitcoin.

There are countries where the average salary is about $3,000 a year. With a bitcoin at the current price you have 20 years of average salary, and with what is expected to rise in this cycle, quite a few more.

[benalexis12]

Will owning 1 btc make generational wealth?

If you have 1btc now in your wallet account OP, I can say that it is better to hold it for awhile and put or transfer it to a hardware wallet first so that it is not prone to hackers. Because holding Bitcoin right now is a huge thing for sure, especially if it's at least 1 bitcoin.

Just try to wait and just leave it in your wallet account for at least 1 more year so you can see what will happen to your hold of bitcoin, which can definitely double or even triple the amount of capital you have now.

[RockBell]

It will some day but not for a while. Absolutely though, we should all be doing everything we can to buy as much Bitcoin as possible whilst the price is still somewhat low. Due to its deflationary supply mechanism, Bitcoin is designed to go up forever. We may see $1,000,000 per coin in 20-30 years so it makes sense to buy as much as possible as regularly as possible.

it will get to the point that Bitcoin will become very expensive and the advice of buying and accumulating now is good since it is called a future investment because those who even bought a long time ago have made a fortune from investing early and it is very considerable when it comes to making decisions about fiance you just have to learn to sacrifice for the future so that you won't miss anything out when people are making a profit. there is a lot of profit that lies when you hold Bitcoin for a very long time but our many people can wait, it is just as if you have a tree you nurture and you are waiting for it to start producing fruit that is exactly how you can be able to invest in bitcoin and wait till it starts producing fruits, and for you to be able to wait for 20-30 years then your generation wealth is then certain, patience will continue to be the key.  the only thing we can do is to encourage one another so that we can be able make money after putting effort of having to wait for a long time.

[Catenaccio]

it will get to the point that Bitcoin will become very expensive and the advice of buying and accumulating now is good since it is called a future investment because those who even bought a long time ago have made a fortune from investing early

If it means current chances are like last ones to invest in Bitcoin, it's not true because we need Bitcoin to be a good investment asset in future too. Because if it comes to time when Bitcoin is too expensive and people are no longer afford to invest in it, it will be no longer attractive for the crowd as an investment option, that is not good for its value and price growth.

Fortunately with Bitcoin, it's fungible to a satoshi unit so people can buy either 1 bitcoin or some satoshi.
https://charts.bitbo.io/satoshi-per-dollar/
https://hodl.camp/sats_per_dollar/

[MeGold666]

Fortunately with Bitcoin, it's fungible to a satoshi unit so people can buy either 1 bitcoin or some satoshi.
https://charts.bitbo.io/satoshi-per-dollar/
https://hodl.camp/sats_per_dollar/

I don't know why you used term "fungible" for describing something totally different (denominations) but Bitcoin is not fungible:
https://bitcointalk.org/index.php?topic=5507487.msg64469602#msg64469602