Bitcoin has come a long way since its inception in 2009. With bitcoin’s market capitalization at just over $1 trillion, new on-chain data reveals that the number of millionaire members of the bitcoin rich list have ballooned.
But what is the “bitcoin rich list” and why should you care?
The bitcoin rich list refers to the list of bitcoin addresses that hold over $1 million worth of BTC. Since January 2021, over 100,000 wallets have met the qualification. Notably, the number swelled by 400% from just 25,000 millionaires five months ago.
However, the list is not as large as it is often portrayed to be. And it looks like the upside has a long way to go because of two simple facts.
First: There are approximately 46.8 million millionaires in the world holding at least $158.3 trillion of wealth — a number of fiat millionaires that clearly dwarfs the 100,000 bitcoin millionaire wallets.
In comparison, there are little more than 100,000 addresses with over $1 million worth of BTC and only 9,370 with over $10 million as of March 2021.
Second: The number of around 100,000 accounts holding over $1 million doesn’t mean each account is owned by a unique person. Why? Of course, individuals can own multiple bitcoin addresses.
After all, you can use on-chain analysis to find out how many bitcoin accounts exist and how much is in each account. But you can’t see who owns those accounts.
So, the actual number of bitcoin millionaires is almost certainly lower than 100,000 if you assume some of these addresses are held by the same individuals.
The small number of bitcoin millionaires (just 0.2% of the 46.8 millionaires in the world) offers a perspective that we are still in the early innings with bitcoin’s adoption rate. As more millionaires diversify a percentage of their wealth from fiat to bitcoin, the asset’s price can go even higher.
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