How 1,500 new Bitcoin millionaires per day deal with getting rich
With Bitcoin’s (BTC) price surging to all-time highs (ATH), the number of crypto millionaires is growing bigger every day.
According to data from the crypto analytics firm Kaiko Research, around 1,500 new “millionaire wallets” are minted daily.
Sure, that’s 1,500 wallets and not necessarily individual people, but it highlights a lot of people are becoming richer than they ever dreamed. And that’s just Bitcoin — even more people are growing wealthy with altcoins and memecoins.
And to approach it from another angle, the CNBC Millionaire Survey conducted during the 2021 Bitcoin bull market, revealed that 83% of millennial millionaires owned cryptocurrencies.
With ATH prices, the Bitcoin halving, two crypto ETFs and a political seachange in Washington, many expect a bull run ahead. Maybe your life will change dramatically.
So what happens when you strike it rich and what’s the psychological impact of becoming a millionaire? We asked some crypto millionaires to find out.
Lifestyle changes of crypto millionaires
Erik Finman from Idaho started buying BTC before he was a teenager and by 18 he’d already become one of the youngest Bitcoin millionaires.
He made his first investment aged 12 in 2011 after his grandmother gave him a $1,000 check to fund his education. Instead he bought 100 BTC, which was worth $10 at that time.
The new millionaire status changed how he understood the world and he said it was amazing to see “how many doors, having wealth, opens.” Suddenly, “things that seemed unattainable before suddenly became realistic possibilities.”
Buying a car as a symbol of success
For example, the Idahoan recounted purchasing a brand-new Audi R8 with a custom license plate that read “2.1 GPA.”
He said getting that license plate was “my tongue-in-cheek” way of saying, “I made it big despite not being a great student.” Finman dropped out of school at 15, trying to pursue a career in robotics.
He recalled the exact day he picked up the car and drove the R8 for the first time. Admitting he didn’t “fit in or do well in school,” he noted that when he arrived to meet his friends, it “definitely turned some heads.” It was “a stark contrast” to his high school days and felt significant for him.
Buying a house: The impossible dream comes true
Crypto investor and Bitcoin educator Chris Dunn recalls how his millionaire status allowed him to fulfill a previously unattainable dream. Thanks to an ETH trade from the 2021 cycle, he was able to buy his dream house.
Like Finman with his Audi R8, Dunn had a told-you-so moment when looking back. He recounted how his “trading friends and colleagues” from his time in TradFi “laughed at me and said I was wasting my time” for investing in crypto.
Related: Bitcoin’s ‘up only’ rally creating around 1.5K crypto millionaires daily — Data
Dunn recalled people “rolled their eyes” in 2015 when he went on a speaking tour and tried to convince stock traders that Bitcoin was going to become a huge deal. At that time, one BTC was worth $200. To this mockery, Dunn retorted, “Who’s laughing now?”
The joy of anonymity among crypto millionaires
‘Gonzo’, a self-made crypto millionaire who asked to remain anonymous, told Cointelegraph that despite recently starting a real estate endeavor thanks to his cryptocurrency wealth, his favorite part of being crypto rich is the fact no one knows.
His greatest pleasure as a crypto millionaire is the feeling that people around him probably think he’s a no hoper, as Gonzo “pretends to be poor” and dresses down despite probably being richer than most other people in the room.
Interestingly, despite the empowerment the millionaires Cointelegraph spoke to felt, they all admitted to feeling still pretty grounded despite occasionally enjoying some luxuries.
How crypto millionaires perceive money
Depending on how much wealth you’ve amassed — and how much profit you’ve realized that’s not just simply a number in your crypto portfolio tracker — wealth can be sustained through compound interest and intelligent investments. When that happens, money can transform into an omnipresent tool, changing both its perception and use.
For Finman, the most significant transformation was having “the freedom to focus full-time on my own projects and interests rather than having to work a normal job.” Becoming wealthy hasn’t led him to spend all day lounging under a beach umbrella with a piña colada though.
He now focuses more on investments, building businesses, and creating further wealth, rather than just earning and saving. “Seeing how much wealth can grow with the right investments made me think about money differently,” he said.
For Dunn, having a healthy bank balance has changed his perception of money.
“When I was poor I spent to look and feel rich. Now I focus on my wealth building journey as a game, with money as the token”.
As they’re still trying to build wealth they remain very aware of their expenses. Finman admitted, “Definitely, I am more willing to give to causes I care about and help out friends and family,” he said, but added “I’m also more careful about avoiding frivolous spending.”
Psychological impact of sudden wealth
Mental health professional Elizabeth Sterbenz, who has experience in financial therapy, told Cointelegraph that it’s important to understand “your boundaries are around your personal wealth.”
The psychotherapist said it’s paramount for newly minted crypto millionaires to ask themselves some questions. For example, do you want to talk about how much money you have and how you invested it? Are you willing to pick up tabs, or do you want to split checks? Would you lend money if a family member asked you? How about a friend?
“Once you have a better understanding of what your boundaries are, you will be prepared to navigate other people’s behavior. You can’t control what other people do, but you can choose how you respond.”
Gonzo said he didn’t need to become more generous or change his behavior toward his friends after topping the million dollar mark as he decided not to let almost anybody know.
He consciously decided to “only share the fact of being a millionaire with people who have the same or more wealth than me to avoid any envy factor.” As a result he recognized that he could still be the same stingy person he was prior to becoming a crypto millionaire.
Becoming rich forces millionaires to be actively conscious of how other people judge them for how they use their money.
New challenges faced by crypto millionaires
As wealth grows, new responsibilities and problems arise, just like the Notorious B.I.G. song ‘Mo Money Mo Problems’ chanted.
Dunn admitted that he feels forced to “take extreme measures to protect myself”. Having a million in crypto on a wallet is similar to having a real life wallet with a million dollar bill — if you’re mugged and the wallet is stolen, there’s no way to recover it.
There have been many reports of cryptocurrency thefts in real lif some at gunpoint and, in exceptional cases, ending up with victims dismembered in a suitcase.
The security threat is real; this burden becomes a new, unavoidable problem that must be tackled once they become a crypto millionaire.
Another less stressful and life-threatening struggle millionaires face is taxes. Dunn explained how spending time on “paying taxes and figuring out how to optimize my tax strategy” became one of his first big challenges.
Crypto millionaires must cope with overnight portfolio loss
One of the troubles that may surprise non-millionaires is the psychological burden that may arise when becoming a millionaire. Psychological studies have demonstrated that humans are roughly twice as upset by losses, as they are made happier by gains.
And thanks to volatility, one factor that crypto millionaires face daily is the possibility of losing it all; Finman admitted that “seeing your net worth fluctuate so dramatically messes with your head.”
“Mentally, you go from feeling on top of the world to worrying it could all disappear. It takes a toll.”
Gonzo described being a crypto millionaire as a “psychological rollercoaster” at some times.
He said you must have a solid mindset to sustain the ups and downs, and to understand that any gains you haven’t cashed out remain unrealized.
“In crypto, you may win the lottery and lose the ticket on the way to the counter.”
Finman believes the key to maintaining mental soundness as a crypto millionaire is to have “conviction in your beliefs.” Volatility is a given in the cryptocurrency markets, so Sterbenz recommends slowing down and taking deep breaths whenever a dramatic market move occurs.
“Even doing something like standing up and moving your arms or legs around can help reground yourself so that you can look at the numbers and market action with a realistic perspective and choose decisions from a place of clarity instead of reaction.”
To avoid this burden, Dunn explained that he “self-imposed limits” on the percentage of his portfolio that could be allocated to Bitcoin or other cryptocurrencies, where his portfolio would be less than 50% of his total worth, because “I don’t want to have 80% of my net worth vanish during bear markets.”
Finman believes “the key is staying diligent and making smart moves” as “wealth can be easily lost in crypto.”
With many newly minted crypto millionaires being fairly young; Dunn wanted to advise them the “hardest part” is holding on to their gains. He admitted he’s “seen a lot of people make quick money and lose it because of ego, greed, or recklessness.”
Sterbenz stressed the importance of regular checks on yourself before entering crypto trading to battle greed and to ensure it doesn’t develop into an addiction.
She explained that “there can be some overlap between investing and gambling,” so some fundamental questions must be asked, such as whether you have lost time from work or school because of trading. Has trading impacted your relationships with family or friends? Have you had difficulty sleeping because of trading? Have you spent more time trading than you planned?
She claims that if answered yes to any of these, “you might want to take a look at how your life is being affected by your trading, and possibly seek professional help.”
Dunn explained that if he lost his millionaire status, he would simply say to himself, “there’s always another trade or investment opportunity right around the corner.”
Becoming a crypto millionaire as the path to happiness
Some people may believe that becoming a crypto millionaire is the ultimate goal of happiness. However, Finman admitted that “money doesn’t equate to happiness or fulfillment.”
Sterbenz explained, “there is an epidemic of loneliness right now, and it’s not unique to millionaires.” Social media is one of the catalysts for this issue because it’s “tied to the idea of comparison.”
She explained, “if someone has decided that being a millionaire is the goal that will cure loneliness, then there is not enough money to reach that goal because the bar will keep moving”. The psychotherapist believes that working “on values is so important because it can really help a person identify where they can build meaning in their life” instead of focusing solely on wealth.
Sterbenz explained that new crypto millionaires may be tempted to “make sweeping changes to plans and lifestyles due to upticks in the market.” However, it’s advisable “to examine their values and the meaning they make of their world so that they can make choices with their money and finances that reflect the things that are important to them.”
The journey to becoming a crypto millionaire is not merely a materialistic upgrade but a profound voyage into one’s inner self, marked by both highs and lows.
While happiness cannot be guaranteed, the increased freedom that comes with wealth is undoubtedly a powerful tool in pursuing a fulfilling life.
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