These days, a lot of investors are jumping on the cryptocurrency bandwagon.
Bitcoin is one of the more well-known cryptocurrencies out there, and while its value has moved wildly this year, many consider it a viable investment and a solid money-making opportunity.
While there is the potential to make a lot of money with Bitcoin, there’s also a safer way to grow enough wealth to become a millionaire — invest in the broad stock market.
Index funds are passively managed funds that aim to match the performance of the market indexes they’re associated with.
During the past 30 years, the S&P 500 index has delivered an average annual 10.7% return.
But if we assume that the index is capable of producing comparable returns over the next three decades, and you invest $500 a month in S&P 500 index funds that deliver a 10.7% average annual return over a 30-year period yourself, you’ll wind up with $1.13 million.
What makes the S&P 500 a safer investment than Bitcoin? It’s easy — it’s been around longer, and it has a lengthier history of recovering from downturns and rewarding investors who stay the course.
Also, the future value of Bitcoin will hinge largely on how much demand there is for it, and for demand to stay strong, Bitcoin needs to become a widely accepted form of currency.
To be clear, this isn’t to say you shouldn’t invest any money in Bitcoin.
The average rate on a 30-year fixed mortgage rose today, but rates are still at historical lows.