Erik Finman is a 19-year old bitcoin millionaire. He bought his first ever bitcoin when he was only 12 years old using the $1,000 gift he received from his grandmother. Six years later, when he was 18 years old, he became a bitcoin millionaire. Finman now owns more than 400 bitcoins, the value of which is roughly equivalent to $3.4 million. The rate of each coin is pegged at $8,512.
Finman is more than willing to offer his advice to anyone interested to invest in cryptocurrencies, specifically bitcoin. In an interview he did with CNBC Make It, Finman suggests that people invest 10 percent of their income into bitcoin or any top cryptocurrency. According to Finman, “I think bitcoin is the safest cryptocurrency right now.” However, Jamie Dimon, the CEO of financial giant JPMorgan Chase, believes that cryptocurrencies are a fraud. He explained, “It’s just not a real thing, eventually it will be closed.” Experts similarly agree that a virtual currency such as bitcoin is volatile despite it hitting the $16,000 value a mere weeks ago. Jim Cramer from CNBC also dismissed cryptocurrencies and likened it to “monopoly money”. He added, “It’s just pure gambling at this point. I mean, if you want to gamble, go to Vegas. Vegas is fabulous.”
Finman offers potential cryptocurrency investors with a tip that personal finance experts also abide by: live by the 50-30-20 rule. He explained, “50 percent of your income goes towards necessities, 30 percent towards discretionary spending and 20 percent towards saving.” Finman recommends that the 20% savings be placed in a diverse portfolio and not solely in cryptocurrency – which are essentially high-risk investments. He also advocates bitcoin, adding “Putting money into bitcoin right now is good…That may change because there may be a better solution. But I think that better solution will be very obvious and will be a long time coming so you can make that switch.” Finman confidently declares that cryptocurrency is currently the quickest way for anyone to get rich. “Cryptocurrency represents the largest transfer of wealth our generation has ever seen.” He states, “Never before have young people been able to change economic classes so quickly.”