Erik Finman, a 19-year-old who became a bitcoin millionaire by investing in the cryptocurrency, recently spoke to Business Insider about the current state of the cryptocurrency ecosystem. Notably, Finman pointed out that one can still become a millionaire by investing in cryptocurrencies, and that you can also lose a lot of money.
The bitcoin millionaire initially invested in the flagship cryptocurrency when he was 12 years old. Using a $1,000 gift from his grandmother, he bought bitcoin at $10, and saw its value surge throughout the last seven years.
Regarding the recent market correction that saw over $300 billion leave the ecosystem, Finman stated that most anticipated the ‘crash’ as most experts kept mentioning it would happen. It was, to him, caused by a decrease in momentum. Nevertheless, it didn’t stop cryptocurrencies from advancing, as people will “continue to invest,” and will be “increasingly emotionally connected with digital currencies.”
That said, he revealed he’s still sticking with bitcoin as his preferred cryptocurrency. However, he added that bitcoin is “like Netscape or Myspace.” This means that although it is currently the number one cryptocurrency, nothing stops others from taking its place. In the future, he sees bitcoin either scale to solve its high fees and slow transactions problems, or lose the number one spot. Notably, these problems forced Bitcoin.org to remove references to these advantages the cryptocurrency used to offer.
“These issues need to be addressed at the technology level, by giving a new coin or updating a coin. Add to that the electricity costs for the mining — to mine a bitcoin, you need so much energy, with which you could cover the needs of a house over a whole year.”
He further added that Myspace and Netscape were around for a long time before better products like Facebook and Google Chrome appeared. This means that new projects are still appearing in the cryptocurrency industry, and that those who make smart investments can make fortunes.
To the bitcoin millionaire, the cryptocurrency ecosystem is a “new kind of Silicon Valley” as there are plenty of money-making opportunities. He stated that those who can invest in the right thing at the right time can make fortunes “even better than before.” He added:
“Therefore, I say if you do not become a millionaire in the next 10 years, then it’s your own fault.”
When confronted with the risk of total loss, he agreed that before investing, proper analysis needs to be done. Plus, he added that everyone is free to start their own business. This could both improve the ecosystem, and make the entrepreneur a fortune.
The biggest mistake a potential bitcoin millionaire can make
To Erik Finman, the worst mistake investors can make is get out of the market when the price dips. According to him, corrections like the one we saw late last year are “just a setback.” He noted bitcoin will “probably continue to rise.”
Furthermore, the bitcoin millionaire believes buying the dip is actually a good strategy, as cryptocurrency prices may never again be this low. Those who don’t have the courage to get involved then may in the future look back and wonder why they didn’t act.