While there are many decentralized digital currencies you can invest in, the most popular cryptocurrency at your disposal is bitcoin (btc). It currently has a market capitalization of $1.15 trillion, which has risen steadily since bitcoin’s inception in 2009. Like all cryptocurrencies, the value attributed to bitcoin can vary substantially based on numerous market factors.
Despite the volatility of bitcoin and other types of cryptocurrencies, it is important to understand that bitcoin is currently the most valuable cryptocurrency on the market.
Reading: Who owns bitcoin now
This article provides a detailed look at how bitcoin gets its value, who owns the most bitcoin, and how individuals and businesses can become bitcoin billionaires.
what gives bitcoin its value?
If you are thinking of investing in bitcoin in the near future, you may be wondering what gives bitcoin its value. bitcoin is a form of digital currency that is considered an alternative to fiat money, all of which is issued by the government. Since central banks control the amount of paper money that is printed, it naturally gives central banks more control over the economy. By comparison, bitcoin is operated by the decentralized authority on a decentralized network using blockchain technology, which is why it is not regularly used in retail transactions.
Although bitcoin is not widely used in the economy, it gets its value from many different factors. A comparison can be made between the value of gold and the value of bitcoin. both products have very specific use cases and are limited in quantity. Like precious metals, bitcoin is durable. however, it is more “portable” than metals like gold, silver, or platinum, more precisely divisible, and, in some respects, more secure. btc is even known as “digital gold”.
Digital currencies like bitcoin have value because they can function as a unit of exchange and a store of value. bitcoin also shows six main attributes that allow it to be used in the economy:
- counterfeit resistance
Because bitcoin qualifies as a form of currency, it can retain a certain amount of value. one of the main reasons is the shortage of bitcoin supply. in fact, the maximum number of bitcoins that can be mined is just under 21 million. this level of scarcity makes it possible for the value and market price of bitcoin to rise sharply.
who owns more bitcoins?
To understand exactly who owns the most bitcoins, it is important to know how many bitcoins can be brought into the market. When bitcoin was first created in 2009, a hard cap of nearly 21 million was placed on the number of bitcoins that could enter circulation. Right now, the circulating bitcoin supply is around 18.8 million. Limits have been placed on the amount of bitcoin that can be created each day, which means that the remaining bitcoin will be mined progressively more slowly between now and 2140 through the “halving” process.
While 18.8 million bitcoins should be on the market, around four million bitcoins are believed to have been lost since the digital currency first came into circulation. Satoshi Nakamoto, the pseudonymous founder of Bitcoin, is believed to have been the currency’s first miner. nakamoto mined over 22,000 blocks and received over a million bitcoins as cumulative block rewards. His current ownership is believed to be around 1,000,000 BTC, which is currently worth over $4,500,000,000 worth $45,000 per BTC.
Bitcoin ownership can be identified by looking at the addresses of bitcoins in circulation. As of today, there are only three separate bitcoin addresses that hold more than 100,000 btc. there are an additional 83 owners who have between 10,000 and 100,000 btc. the 87 richest addresses hold just over 14% of the total bitcoins in circulation.
how many bitcoins do you need to be a billionaire?
Because the price of bitcoin fluctuates daily and is volatile, it is difficult to pinpoint exactly how many bitcoins someone needs to become a billionaire. however, the current value of bitcoin can be used to calculate how many you would need to own. Using a value of around $47,000 per bitcoin, a person or entity would need to own more than 21,000 btc to be a billionaire.
who are the bitcoin billionaires?
If you include satoshi nakamoto, there are currently four addresses that hold enough bitcoin for their owners to be considered bitcoin billionaires. With over 1,000,000 BTC, Nakamoto, who can be an individual or a group, owns more Bitcoin than any other entity. The remaining four billionaires are estimated to have around 672,000 BTC in total. each individual address is made up of more than 100,000 btc and up to more than 250,000 btc. these addresses are mainly found on two crypto exchanges (bitfinex and binance), with the third and fourth being in an unknown location.
these addresses are:
34xp4vrocgjym3xr7ycvpfhocnxv4twseo: 265,480 btc
bc1qgdjqv0av3q56jvd82tkdjpy7gdp9ut8tlqmgrpmv24sq90ecnvqqjwvw97: 168,010 btc
1p5zedwtktfgxqjzphgwpqupe554wkdfhq: 121,397 btc
3lyjfcfhpxyjremsask2jkn69lweykzexb: 116,601 btc
There is a wide range of different entities that have invested in bitcoin, including individual investors, investment firms, and public companies. Some investors choose to put their money directly into bitcoin by purchasing the coin from a cryptocurrency exchange. however, it is also possible to invest in a portfolio containing a wide range of bitcoin-related assets. There are companies that invest in bitcoin, and even a growing number of exchange-traded funds (ETFs) that invest in btc. for example, the grayscale bitcoin fund (gbtc), the largest bitcoin etf, holds approximately 654,600 btc or nearly 3.2% of the total supply.
public and private companies
Although individual investors own a considerable amount of bitcoins, this digital currency also counts public and private companies among its followers. It is possible for companies to invest in bitcoin with their corporate savings, which are generally known as treasuries. This strategy is used by companies and investment firms such as Digital Currency Group, Tesla and Micro Strategy. Certain companies have chosen to invest in bitcoin and other digital assets as a hedge against negative yielding bonds and inflation.
Public companies currently hold over 216,000 btc in total, which is equal to 1,029% of the bitcoin supply. more than 200,000 bitcoins are owned by ten companies. however, nearly 50% of bitcoin owned by public companies is held by micro-strategies. this company bought bitcoin through bond offerings and its corporate treasury. The bonds that MicroStrategy purchased have low interest rates and can be redeemed for fiat or equity. Meanwhile, Tesla owns almost 43,000 bitcoins.
Looking specifically at private companies, they hold just over 174,000 btc, which is 0.829% of the bitcoin supply. the most notable private owner of this cryptocurrency is block.one, a chinese corporation with around 140,000 btc.
Several governments also own a large amount of bitcoins. Right now, governments around the world collectively hold around 260,000 BTC, which is 1,237% of the total supply. Bulgaria alone is believed to have over 213,000 BTC. the United States. the government obtained bitcoins from silk road in 2013, but finally sold them in 2015. if usa. uu. government had held the currency, it would now be worth billions of dollars. however, each coin sold for $334.
what does it mean for institutions to own so much bitcoin?
In general, institutions that own a significant percentage of bitcoin are not a major problem in and of themselves. When institutions like Tesla invest in Bitcoin, the use of BTC becomes more accepted. in fact, it is possible that more and more institutions that invest in bitcoin will eventually increase its adoption as a standard currency, with fewer limitations.
how to get bitcoin in bybit
getting bitcoin in bybit is simple and straightforward. Once you have created an account with Bybit, you can choose to buy Bitcoin with one of the major fiat currencies, of which there are over 50 fiat currencies to choose from. the process involves these four steps:
- Login to a verified bybit account before proceeding with a transaction through bybit’s fiat gateway.
- Choose your preferred currency from the dropdown menu. once you select a coin, you enter the bitcoin you want to buy. Please note that there is a transaction limit depending on the gateway you have selected.
- Choose a payment method and service provider via Electronic Funds Transfer or MasterCard Debit and Credit Card/ visa.
- complete third-party kyc verification to finalize transaction.
- complete transaction, then wait for the purchased bitcoin to arrive in your bybit account. the standard wait time is 2 to 30 minutes.
what happens after all the bitcoins are mined?
Predicting what will happen once all the bitcoins have been mined can be difficult due to the developing cryptocurrency ecosystem. however, the bitcoin economy will invariably change once all 21,000,000 bitcoins are in circulation. for example, traders and miners will have different incentives. Instead of receiving block rewards, miners could earn revenue and profit from transaction fees. The truth is that even the largest holdings of bitcoin have no control over the bitcoin network. therefore, predicting what exactly will happen is relatively impossible.
Bitcoin is a very popular cryptocurrency and can be easily purchased on your preferred exchange. While bitcoin’s value is somewhat volatile, its scarcity has allowed it to reach a current value of over $47,000. Now that you know who owns the most bitcoins and what types of institutions invest in bitcoin, you can start making your next investment.