Bitcoin has come a long way since its inception in 2009. With Bitcoin’s market cap just over $ 1 trillion, new on-chain data shows that the number of millionaire members on the Bitcoin-rich list has increased.
But what is the “Bitcoin Rich List” and why should you care?
The Bitcoin-rich list refers to the list of Bitcoin addresses that contain over $ 1 million worth of BTC. As of January 2021, over 100,000 wallets have passed the qualification. Notably, the number rose 400% from just 25,000 millionaires five months ago.
However, the list is not as large as it is often made out to be. And it looks like the uptrend has a long way to go due to two simple facts.
First: There are roughly 46.8 million millionaires in the world with assets of at least $ 158.3 trillion – a line of fiat millionaires who clearly dwarf the 100,000 Bitcoin millionaire wallets.
In comparison, there are barely more than 100,000 addresses with a BTC value of over $ 1 million and only 9,370 addresses with a value of over $ 10 million (as of March 2021).
Second: The fact that there are around 100,000 accounts valued at over $ 1 million does not mean that each account is owned by a unique person. Why? Of course, individuals can have multiple Bitcoin addresses.
Finally, on-chain analysis can help you find out how many Bitcoin accounts there are and how much is in each account. But you can’t see who owns these accounts.
So the real number of Bitcoin millionaires is almost certainly below 100,000 if you assume that some of these addresses are held by the same people.
The small number of Bitcoin millionaires (only 0.2% of the 46.8 millionaires in the world) offers a perspective that we are still in the early stages of the adoption rate of Bitcoin. The more millionaires diversify a percentage of their wealth from fiat to bitcoin, the higher the price of the asset can be.
Another catalyst for more millionaires who will own Bitcoin in the future
Banks are the main catalyst that can increase the total net worth held in Bitcoin. More banks are offering institutional services for Bitcoin that would enable wealthy customers to easily have Bitcoin in their checking accounts.
Hundreds of smaller banks have already committed to offering regulated funds for Bitcoin. As a result, giants like JPMorgan Chase & Co. and Bank of America could face pressure to offer Bitcoin to their retail customers.
Bitcoin is also gaining traction in the private wealth management industry, which handles trillions of dollars for wealthy clients.
In March, Morgan Stanley, an asset management giant with $ 4 trillion in client assets, announced to its financial advisors that it was launching access to three funds that will allow exposure to Bitcoin. A few weeks later, Goldman Sachs and JPMorgan followed suit with their own statements about introducing Bitcoin services to their private customers.
In addition, US Bank, which is part of US Bancorp, the fifth largest bank in the US, announced that it will offer a cryptocurrency custody product hired by a sub-custodian to manage funds.
Bottom line: With a growing number of banks making it easier for wealthy individuals to buy and sell Bitcoin, the number of their retail millionaires investing in Bitcoin could skyrocket in the future. Bitcoin’s price could also follow.
This is a guest post from Portfolio Insider. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.