How many bitcoins do you need to hold to be among the richest 1%
Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc)Editor's Note: This article comes from
Babbitt Information (ID: bitcoin8btc)
Babbitt Information (ID: bitcoin8btc)
, Author: Scott Chipolina, Compiler: Captain Hiro, Published with permission.
Since its inception more than a decade ago, the price of Bitcoin has skyrocketed and has become one of the best-performing assets in recent years, reports Decrypt. This naturally arouses the curiosity of the owner of this cryptocurrency: how many bitcoins do you need to hold to be considered a true holder (hodler)?
One measure of this is the "1% club (the top 1% of Bitcoin holders)". Of course, pinpointing the top 1% of Bitcoin holders can be a challenge, as the relevant figures range from 0.28 BTC to 15 BTC.
In February 2002, Blockworks Group analyst Jake Levison tweeted:
If you own 0.28 bitcoins, you can statistically be among the richest 1% of the world in terms of bitcoins.
Levison believes, "If you own 0.28 bitcoins, only 1% of the world can own more bitcoins than you." Steve Lee, former product chief of Google, tweeted in 2018 that the reason for getting 0.28 This number is because if you divide Bitcoin's hard cap of 21 million by 1% of the world's population of 7.5 billion at the time, you get 0.28.
Of course, this doesn't take into account that all 21 million bitcoins haven't been mined yet, that millions of bitcoins are lost forever, and that wealth isn't evenly distributed among addresses .
That's just one calculation, though, and another theory says you'd need a larger investment of holding 15 bitcoins to join the 1% club. At today's prices, the investment was over $100,000.
According to a chart published by Blocklink, 15 bitcoins is a magic number.
Blocklink reached this conclusion without considering existing wallet and address data, and assuming that the 25 million bitcoin owners will not lose their bitcoins. The study also reportedly considered applying a power law to the distribution of bitcoin wealth, which is seen as equivalent to global wealth.
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According to this table calculation, people need to hold 15 bitcoins to enter the ranks of the top 1% holders.
When Blocklink conducted research in 2018, it also claimed that 225,000 Bitcoin owners held this amount of Bitcoin, which is extremely small.
However, different studies make different assumptions, and since there's no precise or transparent way to identify who owns which address, it's actually hard to know how much bitcoin you need to get into the 1% club.
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Bitcoin's "Invisible Whale"
The above statistical method is difficult to get precise numbers, because the data will be affected by changes in the number of bitcoin holders, the total number of lost bitcoins and the total number of wallets.
Also, the same person can have multiple Bitcoin addresses. Second, Bitcoin is held by many cryptocurrency exchanges and other investment firms, which trade on behalf of clients.
I think there may be quite a few invisible whales in Bitcoin.
Ingo Fiedler, co-founder of Blockchain Research Lab, said in a conversation with Decrypt:
I would also like to add that this limits the explanatory power of on-chain data in determining Bitcoin adoption and the concentration of wealth in Bitcoin.
Who Joins the Bitcoin 1% Club?
It is difficult to determine who is currently a member of the Bitcoin 1% club, and it is also difficult to determine how many coins these people have in their hands.
Nonetheless, the chart below, published by Bit Info Charts, gives us some good information. According to the graph, at least one address is 100% a member of the Bitcoin 1% club.
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According to the data in the table, a single address at the bottom of the table owns 1.23% of the total number of Bitcoins in circulation, with a Bitcoin balance between 100,000 and 1,000,000.
For the sake of demonstration, in theory, ignoring the addresses with the number of coins held between 0 and 0.001 in the above figure, the rest of the addresses may have 1% of the total amount of bitcoins in circulation.
Even so, as Blockchain Research Lab noted above, the same person can have multiple bitcoin addresses, so this method won't necessarily yield accurate numbers.
Does it matter how many people join Bitcoin's 1% club?
Ultimately, there is a little more to consider in order to determine how many Bitcoins it takes to get into the 1% club.
Regardless of your calculations, being part of this club depends largely on what Bitcoin is worth at the time.
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