Do Only the Rich Get Rich from Bitcoin?

We’ve all heard stories about investors who have made tens or even hundreds of millions from Bitcoin. You’ve also seen the headlines from institutional investors like BlackRock and Microstrategy who hold billions in Bitcoin. 

Many of the massive Bitcoin gains over the last few years were realized by early adopters or by wealthy investors who could scale their investments to maximize returns. There’s a growing belief among some that the opportunity in Bitcoin is gone, and that the average investor can no longer make money from it.

The truth is that while Bitcoin wealth is uneven, there is still opportunity for smart, patient investors. Today, we’re going to look at how the Bitcoin investment market has changed and how retail traders can still take advantage of it.

Who Actually Made the Most Money in Bitcoin

Those making the most money in Bitcoin fall into three general categories. The first are the early adopters, those who got into crypto at the ground floor, up to when it was still under $500 per coin. These are the investors who turned $1,000 or less into tens of millions. These individuals were in the right place at the right time and took a risk that resulted in generational wealth.

Next are Bitcoin miners who use ASIC computers to solve equations to unlock BTC. In 2015, miners who unlocked one block on the Bitcoin blockchain received 25 BTC, worth $1.87 million today. Forward-thinking individuals who even dabbled in mining wound up earning life-changing money.

Today, a block yields only 3.125 BTC, and mining is now much more difficult than in the early days. Some individual miners became rich, and corporations were formed to mine Bitcoin, with top companies like Marathon and Riot still operating today.

Lastly, large holders of cryptocurrency, aka whales. These include wealthy individual investors and institutional investors such as BlackRock. Whales hold such a large amount of cryptocurrency that a few percentage points can result in a sizable profit. Michael Saylor is among the most well-known Bitcoin whales, holding over 17,700 BTC, currently worth over $1.32 billion.

Many whales were among early Bitcoin adopters, or hopped on the Bitcoin train, which proved too powerful to ignore. Even then, most whales picked the right time to enter the market and have used their profits to drive future buying.

The Role of Wealth and Capital

A common assumption is that you need a lot of money to invest in Bitcoin successfully. The reality is that larger investors can absolutely enjoy larger returns. For a wealthy investor who can put $1 million into Bitcoin, a 10% gain will earn them $100,000. When Bitcoin prices trend upward, their profits scale.

Those with more capital also have the money to invest in better financial tools, such as algorithmic training systems or Bitcoin specialists who can give them advice that the average investor cannot afford. 

Large-volume investors typically have the funds to withstand the massive volatility that often occurs in crypto markets. A 70% drop during a crypto winter may look bad on paper, but likely will not force them to sell as it might for a retail investor with a sizable portion of their net worth in crypto.

Ultimately, it is definitely easier to invest in Bitcoin if you’re wealthy, but that doesn’t mean you are the only ones who can earn a profit.

Can Regular Investors Still Make Money?

You’re wondering if regular investors can still make money from Bitcoin. You absolutely can still make money, but you need realistic expectations. You are not going to make the insane gains that early adopters made because individual coin prices are too high. However, there are still significant profits to be made. Let’s take a look at a couple of core strategies retail holders can use to make money with Bitcoin.

Dollar Cost Averaging

The simplest way retail investors can make money with Bitcoin is old-school dollar-cost averaging (DCA). With a DCA strategy, you buy Bitcoin at regular intervals, and this can result in a lower cost basis over time. 

For example, if you buy Bitcoin at $75,000, $70,000, $65,000, and $60,000, the average cost will be $67,500. If Bitcoin goes back to $100,000, you have a 32.5% profit on your purchases. 

When using DCA, you set an interval and don’t worry about the price. Sometimes you buy Bitcoin at a high price, while at other times you take advantage of lower-cost Bitcoin.

You can expect a 30 to 50% ROI using this strategy, and you don’t have to worry about watching the markets. Set your buys and forget them until the next bull market, or hold them long-term.

Crypto Winter Buying

Another popular strategy for those who understand crypto cycles is crypto winter buying. After the bull market phase of each crypto cycle comes “crypto winter,” during which the price of Bitcoin can drop by 70-85%. Investors who are brave enough to buy while Bitcoin’s price is crashing have a fantastic opportunity at significant profits. 

One of the best ways to go about this is to set up staggered Bitcoin purchases at anticipated price points. I’ll give you an example of what I’ve already done this crypto winter. Starting at $80,000, I set buys at every $2,000 level, meaning I purchased at $80k, $78k, $76k, all the way down to $65. Once they executed and Bitcoin went back up to $75k, I placed new orders starting at $67,500, staggered by $2,500 down to $50,000. 

If you choose this strategy, you can execute it in multiple ways. Some people purchase the same amount each time. Others will stagger their purchase amounts based on price. For example, my purchases closer to $50,000 are larger than my others because that is where I anticipate the approximate bottom of this cycle to be. 

One thing that may drive investors away from this strategy is that you have to set multiple buy orders and tie up capital in the hope that Bitcoin will drop. Otherwise, it requires you to regularly watch the markets and hope you catch the next flash crash or major negative catalyst so you can put in some buys. 

This form of investing can realistically earn you a 2 to 3x ROI on your investment. Analysts forecast Bitcoin could reach $150k and possibly $200k in the next bull run. Any purchase under $80k has a realistic chance of doubling. My ROI on my Bitcoin holdings from the last cycle was around 2.5x.

Long-Term Holding (2 Cycles +)

If you’re looking to maximize your profits, you’re going to want to adopt a long-term holding strategy. By long-term holding, I mean holding your Bitcoin for 2 or more cycles. 

In 2016, Bitcoin traded around $700. By 2024, the price climbed over $106,000. While market conditions differ drastically now, the opportunity for long-term growth remains.

Depending on who you listen to, Bitcoin could be at $250,000 or as high as $750,000 by 2034. Smart investing now could lead to dramatic profits later. Better still, patient retail investors can continue to accumulate over the years and use either a DCA or staggered-buying strategy during crypto winter to maximize profits and even build retirement or generational wealth.

Why It Feels Like Only the Rich Win

Are you among those who feel you’ve missed the boat on crypto? You’re not alone. Many people overlook the opportunities Bitcoin still offers because they feel only the rich win in crypto.

First, some people hear about the success stories of early adopters or smart investors and feel they cannot compete. They think that because Bitcoin is so expensive, they don’t have enough money to make a substantial profit. Many mistakenly think they need tens or hundreds of thousands to invest to be successful.

Other people may have actually failed at crypto investing in the past, often because they focused too much on hyped-up memecoins or failed to take a profit. They think Bitcoin is a scam and aren’t going to “waste their money.”

Lastly, people believe that large holders, aka whales, constantly influence markets. While it is true that whales who buy and sell large amounts of Bitcoin can affect market pricing, these effects are usually short-lived. Bitcoin is much more influenced by major global and economic news, just as stocks and other traditional investments are. 

Ultimately, it is perception vs reality. Many believe Bitcoin is not for everyday investors, but the reality is that the right strategy can still yield a healthy profit.

What Bitcoin Is Now (Not What It Was)

Before investing your first dollar in Bitcoin, you need to understand how the game has changed. First, Bitcoin is no longer the niche, speculative holding that it was a decade ago. It is now considered a store of value, aka digital gold. It is considered a mainstream asset that is held by many of the ultra-rich and global money management firms.

Next, while sizeable profits are still possible, investors can no longer expect the insane growth early adopters saw. Instead, they need to employ a proper strategy to achieve solid returns. This includes dollar cost averaging, investing during crypto winter, and holding through multiple cycles to maximize profits.

Bitcoin Profits Are Still Available to Everyone

Early adopters of Bitcoin had the biggest advantage and made the most money. Nobody will ever be able to match the ROI they enjoyed. Wealthy investors can still make insane amounts of money with Bitcoin by scaling their investments, enabling them to profit significantly in any positive market condition.

The wealthy are not the only ones who can make money with Bitcoin. Retail investors can still enjoy real profits, provided they are willing to adjust their expectations and make smarter investments. Investors willing to hold through multiple cycles can enjoy the most money as Bitcoin is likely to see significant price growth over the next decade.

Bitcoin has generated individual wealth faster than any other investment this century, and opportunities still exist. You won’t make 10,000x on your investment, but with the right planning, you could still set yourself up for a comfortable retirement.