How Bitcoin Could Help You Retire a Millionaire

It's hard to argue with the historical track record of Bitcoin (CRYPTO: BTC). The world's most popular cryptocurrency is up a head-spinning 188,193,607% since July 2010.

Needless to say, Bitcoin has minted its fair share of millionaires along the way. According to The Crypto Wealth Report 2025 from Henley & Partners, there are 145,100 Bitcoin millionaires in the world right now.

Tap into the power of compounding returns

The key to Bitcoin's success has been its ability to deliver triple-digit percentage returns, year after year, with only a few breaks in between. It's not impossible to transform a few thousand dollars into a million dollars if your investment is doubling in value on a regular basis.

Consider that, in the period from 2012 to 2025, Bitcoin delivered seven years of triple-digit returns. The really big year was 2013, when Bitcoin skyrocketed by 5,428%. In 2017, Bitcoin soared by 1,375%. In 2020, Bitcoin increased in value by 305%. In fact, the "worst" positive year for Bitcoin was 2015, when it only returned 36% to investors.

Image source: Getty Images.

Admittedly, Bitcoin has had a few years when its price absolutely cratered. In 2018, for example, Bitcoin lost 74% of its value. In 2022, it lost 64% of its value.

Even so, the compound annual growth rate (CAGR) for Bitcoin since August 2017 is a sparkling 49.75%. The good years have more than made up for the bad years, and investors have been handsomely rewarded for their faith in Bitcoin.

Buy the dip

That brings us to the second key strategy for becoming a millionaire with Bitcoin: buy the dip. In other words, look for opportunities when Bitcoin has lost 20% or more of its value, and then buy aggressively.

This is harder to do than it sounds. As noted above, Bitcoin has posted some colossally bad years. According to Cathie Wood of Ark Invest, Bitcoin has experienced five different periods when it has lost 75% or more of its value.

But here's the thing -- Bitcoin has emerged from each of those declines stronger than before. After each collapse in price, Bitcoin has gone on to set another all-time high. In 2021, for example, Bitcoin hit a (then) all-time high of $69,000 before collapsing in value in 2022. But in late 2024, Bitcoin regained its all-time high before going on to hit the $100,000 price level. In 2025, Bitcoin eventually went on to post a new all-time high of $126,000.

That brings us to today. Bitcoin is experiencing another one of its famous dips. It's now down nearly 30% from its all-time high in early October. As a result, critics are out in force, talking down the future prospects of Bitcoin. But longtime crypto investors know exactly what to do: buy the dip. Over time, they have learned to trust in Bitcoin's proven ability to bounce back from adversity.

Embrace the volatility

The final key to becoming a Bitcoin millionaire is learning to embrace its volatility. While Bitcoin's volatility has been on the decline during the past decade, it is still a key factor to consider. The price of Bitcoin can swing up or down by 10% or more in a single day. Even during bull market rallies, Bitcoin can suffer 20% market declines before eventually recovering.

So it's important to have the right mindset when investing in Bitcoin. The goal is not to invest in an asset that can safely churn out 10% gains, year after year, for decades. Instead, the goal is to invest in an asset that can deliver turbo-charged returns over a much shorter period of time.

To use a sports analogy, Bitcoin is not a singles hitter, content to bang out hit after hit, while reaching base safely on a regular basis. Instead, Bitcoin is a streaky home run hitter, able to swat the ball out of the park with a single swing of the bat. But you never really know when Bitcoin is going to go into a massive, year-long slump along the way.

What is Bitcoin's true upside potential?

The good news is that, despite Bitcoin's recent slump, many investors still think it is capable of hitting a price of $1 million within the next few years. Given its current price of $94,000, that implies a more than 10-fold return on investment.

But just remember: You will need to buy the dip along the way. And you will need to embrace Bitcoin's famous volatility. If you do that, you could be on the path to becoming a Bitcoin millionaire.

Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.