News hardware Bitcoin: nearly 8 out of 10 millionaires in BTC are no longer… The crisis hurts
It surely did not escape you, Bitcoin has been in free fall for several months… Its decline has led to downward movements on the entire crypto market. Several players in the cryptocurrency sector have therefore been affected by these price slides, in particular Bitcoin millionaires.
Around 80,000 Bitcoin addresses are no longer millionaires
Bitcoin, sold at €68,000 in November 2021, saw its supply and demand reverse, causing its price to fall to €20,000. This drop in value has a major impact on the market capitalization of Bitcoin and therefore on investors.
Indeed, since November 2021, the number of BTC millionaires has dropped considerably.
We know this because the blockchain, the technology behind Bitcoin, archives the anonymous addresses of the wallets of each cryptocurrency user. As a result, it was recently observed on the blockchain that only 26,000 wallets were still millionaires despite the fall in prices. A massive decrease since at the end of 2021, there were no fewer than 106,000 millionaire addresses in assets. As a result, 76% of Bitcoin millionaires had their status revoked, most only became Satoshi (Bitcoin pennies) millionaires…
While the price of Bitcoin plunged more than 60%, causing it to hover between €18,000 and €22,000, today to reach one million euros in Bitcoin, a wallet must contain around 50 BTC while at its peak it required “only” 15 BTC.
However, the decline is not only unhappy since some investors are already taking advantage of this price drop to fill their crypto portfolios by acquiring more Bitcoins, in the hope of becoming a millionaire in their turn by having BTC.
Bitcoin: generator of crypto-millionaires
As you know, Bitcoin is one of the most profitable investments in the history of finance. The digital asset costing approximately $0.001 in 2009 (its production cost) saw its price multiply by several million to reach the price we know today. This surge in value has ranked Bitcoin among the largest market capitalizations in the world ahead of the action of Mastercard or Nvidia.
As a result, Bitcoin has created more millionaires in 10 years than any other asset. In the middle, they are called these crypto-millionaires: the whales.
Millionaires do not have access to their bitcoins
However, several investors invested a long time ago and some have unfortunately lost their identifiers and cannot access their loot. According to the blockchain analysis company, Chainalysis, 20% of Bitcoins in circulation would be blocked forever since their owner does not have access to the wallet.
For this reason, one can imagine that of the remaining 26,000 Bitcoin millionaire addresses, some of the wallet owners do not even have the possibility of reselling the famous digital asset.