B.itcoin (BTC) has come a long way since it was launched in 2009. With a market cap of just over $ 1 trillion, new on-chain data shows that millionaire members of the Bitcoin-rich list are on the rise. What is the Bitcoin Rich List and Why Should You Care?
The bitcoin rich list is simply a list of addresses with bitcoin worth over $ 1 million. As of January, over 100,000 wallets have passed the qualification. Notably, the number rose 400% from just 25,000 millionaires five months ago.
However, it is not as large as is often depicted. And it looks like the uptrend still 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 – which clearly dwarfs the number of 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 number of around 100,000 accounts valued at over $ 1 million doesn’t mean that every 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 46.8 millionaires in the world) offers a perspective that the adoption rate of Bitcoin is still in its infancy. The more millionaires diversify a percentage of assets from fiat to crypto, the higher the price can be.
Another catalyst for more millionaires who will own Bitcoin in the future
Banks are the key catalyst that can increase Bitcoin’s total net worth. More and more banks are offering institutional services for Bitcoin, where wealthy customers can easily own Bitcoin in their current bank accounts.
Hundreds of smaller banks have already signed up to offer regulated funds for Bitcoin. According to fintech giant Fidelity National Information, giants like JPMorgan Chase and Bank of America could come under pressure to offer crypto to their retail customers.
Bitcoin is also gaining traction in the private wealth management industry, which handles trillions of dollars for wealthy clients. Last month, Morgan Stanley, a wealth management giant with $ 4 trillion in client assets, announced to its financial advisors that it was launching access to three funds that will enable Bitcoin ownership. A few weeks later, Goldman Sachs and JP Morgan 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 the growing number of banks making it easier for wealthy individuals to buy and sell Bitcoin, the number of their millionaires investing in Bitcoin could skyrocket in the future. The price could also follow.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.