Rajat Soni, CFA: How Much Bitcoin to Retire in 20 Years?

Since the launch of bitcoin in 2009, it has been the greatest-performing asset of all time. With those high returns come high volatility. As the crypto space matures, bitcoin has become easier to buy and hold than ever.

While bitcoin’s massive returns will likely slow in the decades ahead, it still remains a big winner. That’s because bitcoin is the only asset globally programmed with a maximum cap.

Currently, over 93% of all bitcoin that will ever exist have been mined. Today’s investors may balk at an asset trading in the six-figure range. But it likely has more upside given that it’s still in early adoption.

If bitcoin continues to outperform traditional assets, a buy today could fund a reasonable retirement in 20 years.

That’s based on several factors. An investor should first estimate their retirement needs. That includes calculating the cost of living in various cities. Then, add in a margin of safety.

For a high cost-of-living area like New York, it may take about 4 bitcoin to retire in 20 years. That assumes bitcoin averages a 20% return.

That would cost just over $400,000 today. If bitcoin averages a 30% annual return, however, it may take less than 1.5 bitcoin to fund a retirement. Investors who buy today can still get a valuable bargain in the future.

To see the full calculations behind retiring on bitcoin, click here.