If you're ruing the decision not to dip your toes into the cryptocurrency market, and feel like you are one of the few that missed out, don't worry, you're not. Even with the recent plunge inprices, bitcoin and other cryptocurrency prices remain well above historical levels.The New York Times published an article over the weekend titled Everyone is Getting Hilariously Rich And You're Notwhere a bunch of white dudes dressed like they pioneered theWilliamsburg hipster movementtold their stories of cryptocurrency success, leaving casual readers to wonder, why not me?
However, despite the media frenzy,distribution data suggest you arenot alone if you don't own bitcoin, and if you do, you are certainly not getting rich. While millions read aboutsurging cryptocurrency pricesandgrowing market caps, the number of actual wallets widening is just a handful. (See also:The 6 Most Important Cryptocurrencies Other Than Bitcoin)
According to bitinfo, which tracks the total number and value of bitcoin addresses, 75% of addresses are home to less than 0.01 bitcoin, and 97.54%have a balance of less than onebitcoin.So at its current price of $10,100, three-quarters of bitcoin addresses are worth just over $100. And at the other end of the scale, the number of addresses with balances between 100,000 and 1,000,000 is three, or 0.0000106%. And in monetary terms, the bitcoin millionaire buzz is more a fuzz. Just 0.07% percent of addresses are worth more than $1 million whereas 74.5% of addresses are worth less than $1.
So when Erik Finman, the 18-year old school drop-out told CNBChe became amillionaire by investing money from his grandma into bitcoin, there's no need to feel foolish. Erik is one of afew bitcoin millionaires.
Howit compares to U.S. stocks?
If bitcoin isn't making you rich, then the record stock market pricesmust be right? Again, not really the case. While concentration of wealth in U.S. stocks is nothing compared tocryptocurrency markets, the shrinking number of people benefiting from the bull marketpaints a pretty clear picture of the overall asset concentration in the U.S.
On January 16, the Dow Jones Industrial Average topped 26,000 for the first time, just 12 days since it surpassed25,000. However, the decade-long bull rally is makingfewer Americans wealthy. According to New York University professor, just 13.9% of Americans directly own stocks, and the bottom 60% of U.S. households own just 1.8% of stocks. And much like bitcoin, ownership is highly concentrated with the top 1% owning more than 40% of stocks.
The Bottom Line
After a fruitful2017wherethe price of bitcoin rose from below$1,000 to nearly $20,000, prices have steadied to trade in the $10,000 to $15,000 range to start 2018. However, reddit threads and chat rooms remain clustered with enthusiasts. But don't be fooled, there are only 166,853 addresses worth more than $100,000.
In other words, 0.05% of Americans have slightly less than the average U.S. household income in bitcoin.Minus tax. Minus transaction costs. And with the recent slide in the price of bitcoin this small section of society may become less well-off.
Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author does not owncryptocurrency.
FAQs
And in monetary terms, the bitcoin millionaire buzz is more a fuzz. Just 0.07% percent of addresses are worth more than $1 million whereas 74.5% of addresses are worth less than $1.
Are people getting rich off of Bitcoin? ›
Over the course of its 15-year history, Bitcoin (CRYPTO: BTC) has made plenty of millionaires.
Did anyone make billions off Bitcoin? ›
Are There Any Bitcoin Billioniares? There are 16 cryptocurrency billionaires in Forbes' ranking of billionaires. Sam Bankman-Fried is still on the list, but Forbes lists the ex-CEO of FTX with no wealth. 16 There are likely many more billionaires who own crypto, but most do not publicize their holdings.
Are billionaires buying Bitcoin? ›
Billionaire hedge fund managers are also looking for ways to get exposure to Bitcoin. Unlike most retail investors, they are not just investing in Bitcoin for its upside potential. Primarily, they view it as a hedge against inflation and economic uncertainty.
Is all Bitcoin worthless now? ›
Is All Bitcoin Worthless Now? Bitcoin hasn't been worthless since it was first introduced—but it is still in its discovery phase. This means investors, consumers, businesses, scientists, and governments are still exploring its uses and value.
What if I invested $1000 in Bitcoin in 2010? ›
If you had bought $1,000 worth of bitcoin 10 years ago, it would have grown by 7,644% and be worth around $77,443 as of Feb.
Can you make $100 a day with crypto? ›
Can you earn $100 a day trading cryptocurrency? Absolutely! If you're new to crypto day trading, here's what you need to know to make money. The most effective way to make $100 a day with cryptocurrency is to invest approximately $1000 and monitor a 10% increase on a single pair.
What family bought Bitcoin at $900? ›
Didi Taihuttu's family was called the "Bitcoin family" by the media at the time. Then he took his family to start a global "poor tour". In three years, they traveled to 40 countries/regions, and they were still preaching their support and belief in Bitcoin during the trip.
Who is the richest Bitcoin holder? ›
Who Are the Biggest Individual Bitcoin Billionaires?
- Satoshi Nakamoto. Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is more a legend than a person we can pinpoint. ...
- Cameron and Tyler Winklevoss. ...
- Changpeng Zhao (CZ) ...
- Tim Draper. ...
- Michael J. ...
- Others. ...
- MicroStrategy. ...
- Galaxy Digital Holdings.
However, some estimates can be made based on blockchain data and surveys of Bitcoin holders. According to data from Bitinfocharts, as of March 2023, there are approximately 827,000 addresses that hold 1 bitcoin or more, representing around 4.5% of all addresses on the Bitcoin network.
So, 10 times from those levels would mean that Bitcoin could go as high as $350,000, Saylor said. If this is the case, you would need to own 2.86 BTC to become a millionaire. It would cost around $190,000 today.
How much Bitcoin does Elon Musk own? ›
The co-founder of Tesla Inc. revealed on Twitter that he owns only a tiny fraction of one bitcoin token. "I literally own zero cryptocurrency, apart from . 25 BTC that a friend sent me many years ago," Musk confessed.
Who owns the largest amount of Bitcoin? ›
According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.
Can Bitcoin go to zero? ›
A reasonable assumption that Bitcoin could hypothetically reach the null state of it's value is worth the thought. Even-though such an event is very less likely to take place, there are some factors that could theoretically lead to Bitcoin price crashing to zero.
Will Bitcoin eventually fail? ›
Technologically, it has no single point of failure: Every computer in the network maintains a complete record of every transaction, which means no single entity can shut it off.
Are some bitcoins lost forever? ›
These 1.8 million “lost” coins account for around 8.5% of the total supply of 21 million—93% of which have already been mined—that will ever exist. In most cases, it's impossible to know for sure what became of a given wallet, but it's a safe bet many are indeed gone forever.
Is anyone actually making money from Bitcoin? ›
It is possible to make $100 per day, but there is no guarantee or specific technique you can use to ensure it happens. Cryptocurrency trading, lending, staking, and investing all come with significant risks because it is such a volatile and unpredictable asset.
How much can I make if I invest $100 in Bitcoin? ›
How far can a $100 investment into Bitcoin go?
| Year | Bitcoin price on January 1 | BTC acquired with $100 investment |
|---|
| 2021 | $29,200 | 0.0034 BTC |
| 2022 | $47,800 | 0.0020 BTC |
| 2023 | $16,630 | 0.0060 BTC |
| 2024 | $42,675 | 0.0023 BTC |
10 more rowsMar 6, 2024
There are 88,200 crypto millionaires worldwide, with just under half (40,500) holding their fortunes in Bitcoin, according to the inaugural Crypto Wealth Report published by leading international wealth and investment migration specialists Henley & Partners.
