It’s clear that there is a lot of potential for growth in the number of Bitcoin millionaires with an increase in constant and visible Bitcoin transactions. Which will also propel the price of the cryptocurrency.
New on-chain data has revealed that the number of bitcoin millionaires has swelled since its inception in 2009. Bitcoin’s current market capitalization is just over $1 trillion.
How does the “bitcoin rich list” work and why should you care?
The bitcoin rich list is a list of bitcoin addresses, with over $1 million in bitcoins. Over 100,000 addresses have made our list since January 2021. This number has soared more than 400% since only 25,000 millionaires were listed a few months ago.
But it isn’t as big as it is often portrayed as being. And two simple facts suggest the upside is still a long way off.
To begin with: The world has approximately 46.8 million millionaires holding $158.3 trillion in wealth – a staggeringly large number of fiat millionaires compared to bitcoin’s 100,000 millionaires.
As of March 2021, there were less than 100,000 addresses with over $1 million in bitcoin, compared with 9,370 with over $10 million.
Additionally: In spite of the fact that around 100,000 accounts hold over $1 million, this doesn’t mean that they are all owned by the same person. This is because individuals can own multiple bitcoin addresses.
You could, for example, use on-chain analysis to find out how many bitcoin accounts exist and how much money is in each account. However, you could not determine who owns these accounts.
If you assume some of these addresses are owned by the same people, then the number of bitcoin millionaires is unlikely to exceed 100,000.
We are still in the early innings when it comes to bitcoin adoption, as the 0.2% of bitcoin millionaires (out of 46.8 millionaires in the world) show. With more millionaires diversifying their wealth, the asset’s price may even rise as more millionaires shift towards bitcoin.
MILLIONAIRES OWNING BITCOIN MAY BE A CATALYST IN THE FUTURE
As a result, a greater number of banks are offering institutional services for bitcoin that can enable high-net-worth clients to purchase the cryptocurrency within their existing banking account.
Banks such as JPMorgan Chase & Co. and Bank of America may be pressured to offer bitcoin to their retail banking customers as a result of hundreds of smaller banks offering regulated funds for bitcoin.
In addition to private wealth management, which operates in the trillion-dollar range, bitcoin is also gaining traction with high-end clients.
The Morgan Stanley Group, the world’s largest wealth management firm with $4 trillion in assets under management, told its financial advisers back in March it is opening up access to three bitcoin-related funds. Soon after that, Goldman Sachs and JPMorgan announced that they would be offering bitcoin services to private clients.
And, The U.S. Bank, part of U.S. Bancorp and also the country’s fifth-largest bank, is collaborating with a sub-custodian to provide cryptocurrency custody services.
To summarize: The number of high-net-worth individuals who purchase bitcoin from banks could skyrocket in the future, driving the price of bitcoin higher. More banks are making it easier for high-net-worth individuals to purchase bitcoin. And in this scenario, the need for a reliable Bitcoin wallet is sure to rise.