For many believers, Bitcoin is the lottery ticket that they have waiting for since ever. And as I explained in an earlier article How Bitcoin can accelerate Early Retirement? it’s definitely possible if few things play out as you hope them to.
So how much (or how many) Bitcoin you Need to Retire?
We need to make certain assumptions first.
Suppose we are trying to answer – How to Retire on Bitcoin by 2030 or sooner? So in a way, we have about 10 years in front of us.
Now retirement might mean different things for different people. Some people might find it tough to retire with Rs 5 crore while many others might consider Rs 1 crore retirement corpus enough.
So let’s analyze for 3 scenarios – Rs 1 crore, Rs 2.5 crore, and Rs 5 crore.
By when?
I think let’s focus on the next 10 years only for now.
So how much Bitcoin you need to have Rs 1 crore or Rs 2.5 crore or Rs 5 crore in 10 years?
This will also depend on what returns does Bitcoin generates during these 10 years. Assuming we are not considering negative returns, let’s just assess the numbers for annual average returns of 0%, 10%, 20%, 30%, 40%, and 50%. Do note that Bitcoin has done much better in terms of returns in the past. But let’s be conservative.
The current price of Bitcoin (June 2021) is $30-40,000. So let’s keep it at $35,000 as an approximation. This translates to Rs 26 lakh per Bitcoin in India.
So let’s see.
For reaching Rs 1 crore in 2030-31 with Bitcoins, you need the following number of Bitcoins today:
- At 0% annual returns, you need Rs 1 crore today, i.e. about 3.85 Bitcoins
- At 10% annual returns, you need Rs 38.5 lakh today, i.e. about 1.48 Bitcoins
- At 20% annual returns, you need Rs 16.2 lakh today, i.e. about 0.62 Bitcoins
- At 30% annual returns, you need Rs 7.25 lakh today, i.e. about 0.28 Bitcoins
- At 40% annual returns, you need Rs 3.46 lakh today, i.e. about 0.13 Bitcoins
- At 50% annual returns, you need Rs 1.73 lakh today, i.e. about 0.07 Bitcoins
For reaching Rs 2.5 crore in 2030-31 with Bitcoins, you need the following number of Bitcoins today:
- At 0% annual returns, you need Rs 2.5 crore today, i.e. about 9.62 Bitcoins
- At 10% annual returns, you need Rs 96.4 lakh today, i.e. about 3.71 Bitcoins
- At 20% annual returns, you need Rs 40.4 lakh today, i.e. about 1.55 Bitcoins
- At 30% annual returns, you need Rs 18.1 lakh today, i.e. about 0.70 Bitcoins
- At 40% annual returns, you need Rs 8.6 lakh today, i.e. about 0.33 Bitcoins
- At 50% annual returns, you need Rs 4.3 lakh today, i.e. about 0.17 Bitcoins
For reaching Rs 5 crore in 2030-31 with Bitcoins, you need the following number of Bitcoins today:
- At 0% annual returns, you need Rs 5 crore today, i.e. about 19.23 Bitcoins
- At 10% annual returns, you need Rs 1.92 crore today, i.e. about 7.41 Bitcoins
- At 20% annual returns, you need Rs 80.7 lakh today, i.e. about 3.11 Bitcoins
- At 30% annual returns, you need Rs 36.3 lakh today, i.e. about 1.39 Bitcoins
- At 40% annual returns, you need Rs 17.3 lakh today, i.e. about 0.66 Bitcoins
- At 50% annual returns, you need Rs 8.7 lakh today, i.e. about 0.33 Bitcoins
Talking of Rs 5 crore corpus, here is How to build a Retirement Corpus of Rs 5 crore?
So this is how many Bitcoins you need to retire in India. For other countries, the numbers will obviously be different. This is a kind of Bitcoin Retirement Calculator if you want to refer it to that.
Note – This is just a hypothetical discussion and should not be considered as investment advice or prediction.
You can do a similar analysis to see How much Ethereum you Need to Retire?
By the way, there is a 1% Bitcoin Club that you might like to know about.
The “Bitcoin 1% club” refers to the top 1% of Bitcoin holders worldwide. So How much Bitcoin does it take to break into the 1% Club?
As per estimates around Bitcoin ownership distribution 2021, the threshold for 1% Club ranges from 0.28 BTC to as high as 15 BTC.
If you convert 0.28 Bitcoin to USD, you will need USD $9800-10,000 in today’s Bitcoin prices. And if you convert 15 Bitcoins to USD, you will need USD $525K-550K in today’s Bitcoin prices. In Indian Rupee terms this translates to a range of Rs 7.28 lakh to Rs 3.9 crore! So take your pick. By the way, I personally know a Bitcoin Crorepati or Bitcoin Millionaire. You can read What advice I gave to a Bitcoin millionaire to know more.
By the way, there is another club. The more exclusive ’21 million club’. This is a club for those who own atleast one full Bitcoin. So currently at $35,000, this club has an entry price of Rs 26 lakh.
From what I have read, this is obviously more exclusive than the 1% club. This rare group makes up around 0.2-0.3% of the global Bitcoin owners.
One more thing that you need to keep in mind when asking How many Bitcoins do you need to retire? It will depend a lot on future Bitcoin prices. There are BTC price predictions that range from $100K to $1 million per coin! Some are even bigger. But I would suggest not to pin your all hopes on one bet (of Bitcoin). Instead, invest a major chunk in more established assets like Equity and Debt regularly via SIP. If you are a more informed investor, then you might not want to limit your trading activities to just an asset or one industry. You can use The News Spy to trade in different assets, cryptocurrencies, commodities, etc.
But that aside, you may have other questions too about Bitcoin and retirement like –
- How much Bitcoin to retire in 2021?
- How much Bitcoin to retire in 2022?
- How much Bitcoin to retire in 2023?
- How much Bitcoin to retire in 2024?
- How much Bitcoin to retire in 2025?
- How much Bitcoin to retire in 2026?
- How much Bitcoin to retire in 2027?
- How much Bitcoin to retire in 2028?
- How much Bitcoin to retire in 2029?
- How much Bitcoin to retire in 2030?
That’s it. So I hope you liked this discussion about How much Bitcoin do you need to retire? Or how many Bitcoin do you need to retire? So if you want to retire on Bitcoin, then do some number crunching to see how much you must invest in BTC today? And don’t worry if you can’t invest the full required amount in one go. You can always do Rupee-cost averaging by doing a monthly Bitcoin SIP to gradually accumulate Bitcoins periodically.