Stories about overnight billionaires who popped up into financial relevance during the crypto craze created an unhealthy situation for cryptocurrencies. Instead of gradually mobbing toward wide adoption and introducing utility-focused solutions, the whole industry turned into a fever-driven race to outlandish profitability with many projects promising their investors to make them incredibly rich in a couple of years.
While optimism is something we should all respect and even desire in this domain, there must be a strict line between impossible dreams and realistic goals. If too many people are investing just to become billionaires, they will be disappointed. There is simply not enough money to make so many billionaires.
A recent survey conducted by Harris Polls revealed that about 40% of all Americans think that the national economy has the necessary tools to make them billionaires if they are determined enough. However, over 70% of all crypto investors believe that they can become billionaires eventually if they continue investing in Bitcoin and Ethereum.
Another thing to remember is that cryptocurrencies are not designed to battle unequal wealth distribution as many investors believe for some reason. After several flukes at the beginning of Bitcoin, growth was substantiated by the influx of large capital holders who made it possible for BTC to reach new heights. However, these capital holders now represent about 5% of all BTC holders.
Interestingly enough, 62% of all wallets are consistently holding BTC, but they represent less than 30% of all value by some calculations. It means that many people who HODL become billionaires are not determining the direction of the market. Other BTC holders do. The 1% issue will persist even when BTC finally reaches $100K. While many new millionaires may be created by a surge in price, the vast majority of wealth will still be distributed among people who are already rich.
So, what should you do? Crypto is not a magic power that will make you rich against all odds. It is a new technological domain that promises utility and value. You should think of it as an investment that can bring profits and nothing more.