But what is the “Bitcoin Rich List” and why should you care?
Bitcoin Rich List refers to the list of bitcoin addresses that contain over $ 1 million worth of BTC. Since January 2021, more than 100,000 portfolios have met the qualification. Notably, the number is up 400% from just 25,000 millionaires five months ago.However, the list is not as long as it is often described. And it looks like the benefits have a long way to go due to two simple facts.
First: There are approximately 46.8 million millionaires in the world with at least $ 158.3 trillion in wealth – a number of fiat millionaires who clearly eclipse the 100,000 Bitcoin millionaire wallets.In comparison, there are just over 100,000 addresses with over $ 1 million in BTC and only 9,370 with over $ 10 million as of March 2021.
Second: The number of approximately 100,000 accounts with over $ 1 million does not means that each account is owned by a unique person. Why? Of course, individuals can own multiple Bitcoin addresses.
After all, you can use chain analysis to find out how many Bitcoin accounts exist and how many are in each account. But you can’t see who owns these accounts.
So the actual number of Bitcoin millionaires is almost certainly less than 100,000 if you assume that some of these addresses are owned by the same people.
The small number of Bitcoin millionaires (only 0.2% of the world’s 46.8 millionaires) offers a prospect that we are still in the early stages with the rate of adoption of Bitcoin. As more millionaires diversify a percentage of their wealth from fiat currency to bitcoin, the price of the asset may go even higher.
Another catalyst for more millionaires owning Bitcoin in the future
Banks are the main catalyst that can drive up the total net worth held in bitcoin. Namely, more and more banks are offering institutional services for bitcoin that would make it easy for high net worth clients to own bitcoin in their current bank accounts.Hundreds of small 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 banking customers.
Bitcoin is also gaining ground in the private wealth management industry, which manages billions of dollars for high net worth clients.
In March, Morgan Stanley, a wealth management giant with $ 4 trillion in client assets, told its financial advisers it was opening up access to three funds that allow bitcoin exposure. Weeks later, Goldman Sachs and JPMorgan followed up with their own statements about launching Bitcoin services for their private clients.
Additionally, US Bank, which is part of US Bancorp, the fifth largest bank in the United States, has announced that it will offer a cryptocurrency custody product with the engagement of a sub-custodian for management. funds.At the end of the line: With an increasing number of banks making it easier for high net worth individuals to buy and sell bitcoin, the number of their millionaire private clients investing in bitcoin could skyrocket in the future. The price of Bitcoin can also follow.
This is a guest article by Portfolio Insider. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.