Bitcoin Won’t Save You: The Truth About Wealth Creation

In 2020, amidst the global economic uncertainty caused by the COVID-19 pandemic, many Americans received a $1,200 stimulus check as part of a government relief package. For some, this check became an opportunity to invest in assets like Bitcoin. At the time, Bitcoin was priced around $8,000. Fast forward nearly four years, if you had invested your $1,200 stimulus check in Bitcoin, you’d now have around $11,850. That’s an impressive return—nearly tenfold—but let’s pause for a moment.

Does $11,850 really change anyone’s life?

For most people, the answer is no. Here’s why.

Disclaimer: This is not an endorsement of Bitcoin or any specific investment. It is used here purely for illustrative purposes.

What is Bitcoin?

Bitcoin is a decentralized digital currency created in 2009 by an anonymous individual or group under the pseudonym Satoshi Nakamoto. Unlike traditional currencies issued by governments, Bitcoin operates on a peer-to-peer network using blockchain technology to ensure secure and transparent transactions. Bitcoin has gained popularity as both a speculative investment and a potential store of value. However, its extreme volatility makes it a high-risk asset unsuitable for everyone.

A Background on the 2020 Stimulus Package

In response to the economic hardships caused by the COVID-19 pandemic, the U.S. government introduced relief packages to support citizens. One such measure was the Economic Impact Payments (stimulus checks), which provided $1,200 to eligible individuals. Designed to help families cover essential expenses during a period of economic uncertainty, some recipients saw the checks as an opportunity to invest in assets like Bitcoin or the stock market, hoping for significant financial growth.

But even in cases of high returns, like Bitcoin’s rise, the outcome often falls short of creating life-changing wealth.

The Limits of Investing Alone

Whether it’s Bitcoin, mutual funds, treasury bills, or the stock market, the principle remains the same: investments alone rarely create transformative wealth for the average person.

1. Low Starting Capital:
   A $1,200 investment—whether in Bitcoin, stocks, or any other asset—won’t create generational wealth. Starting small makes it difficult to rely solely on investments to achieve financial freedom.
2. Time:
   Investments require years to grow significantly, but everyday expenses like rent, groceries, and healthcare don’t wait. A purely investment-driven strategy often fails to address immediate financial needs.
3. Volatility and Risk:
   Investments like Bitcoin are volatile. Treasury bills are safer but have modest returns. Even with good decisions, there are no guarantees in investing.

What the Poor Truly Need

Money invested alone can’t save the poor man. True financial security comes from a holistic approach: creating multiple income streams, managing expenses, and investing in oneself.

The Blueprint for Wealth Creation

1. Increase Income First
   Focus on growing your income before diving into investments. Start a side hustle, freelance, or upskill to earn more in your current job. Having more money entering your bank account gives you the capacity to save and invest strategically.
2. Build a Business
   A business is a powerful tool for wealth creation. Unlike investments, which depend on external factors, a business allows you to directly control your earning potential.
3. Invest in Yourself
   The greatest return on investment comes from building your knowledge, skills, and mindset. Learning how to negotiate, sell, or manage finances will increase your earning power more effectively than relying on an external asset like Bitcoin.
4. Invest Strategically
   Once you have a stable income and financial knowledge, start investing in assets like stocks, real estate, or even Bitcoin. But only do so with a clear plan and after securing a strong financial base.

The Bigger Picture

The example of Bitcoin demonstrates how even a smart investment with a strong return can fail to create life-changing results. To escape financial struggles, you need more than investments—you need a comprehensive strategy that prioritizes increasing income, building wealth through business ventures, and investing in yourself.

Money grows when you feed it, and the best way to feed it is by earning more of it.

Closing Thoughts

Investing is a powerful tool, but it’s not a magic wand. To truly create wealth:

• Work smart to earn more.
• Build businesses that generate cash flow.
• Invest to multiply wealth.
• Invest in yourself for the greatest ROI.

Your journey to financial freedom starts today.