However, her dreams were shattered when she crashed out of the final after clipping the back wheel of eventual champion Anne-Caroline Chausson.
Reade believes she is stronger for the disappointment and is using it to spur her on as she pushes for gold at 2012.
She said: "I think about it quite a lot but if I am going through a problem in a race I think it can't be any worse than what happened at the Olympics. I try to use it to motivate me rather than as a negative.
"Clearly, it was the biggest event of my life. I thought I was going to be an Olympic champion at 19 so obviously it was heart-breaking not to win but I think it has turned out to be a blessing in disguise.
"I know now not to see results as life-or-death and rather to treat big events as just a normal race. Often when I do that I come out with the top spot.
"I've been world champion but to win the Olympic gold is just a dream at the moment. If I achieve that then nothing would compare to it."