A report by CoinMetrics, a cryptoanalysis firm, shows the number of million-dollar Bitcoin (BTC) wallets is increasing in tandem with the value of the coin. The number of wallets with at least $1 million USD (~120 BTC, at $8,400 as at time of writing) currently stands at only 12,000 addresses. As the cryptocurrency industry grows in adoption and value, the number is expected to increase exponentially, Willy Woo, partner at Adaptive Fund, a cryptocurrency hedge fund wrote on Twitter.
Bitcoin millionaires on the rise: Close to 12,000 unique BTC addresses hold at least $1 million USD (Source: Coinmetrics)
It is however important to note that the number of unique addresses does not imply an equal number of Bitcoin millionaires. The same holder may have multiple accounts, other accounts may belong to custodians and exchanges and some private keys are lost.
A New Generation of Millionaires
According to a Credit Suisse report, there are over 42 dollar millionaires across the globe participating in a number of industries. Despite the cryptocurrency industry contributing to less than 12,000 of these accounts, Woo believes the potential of Bitcoin – especially as a global currency – is a catalyst for growth in the number of Bitcoin millionaires.
Willy Woo wrote on Twitter,
“Here’s the chart for the number of Bitcoin Millionaires over time, around 12,000 right now. There’s 36m Millionaires on this planet, it’s still early days if you believe BTC will be the new currency.”
Millennials are in a digital gold rush according to studies carried out among UK citizens earlier in the year. Furthermore, YouGov released a report in September showing increased awareness of Bitcoin among the US population with millennials leading the charge. As millennials grow their wealth coffers, BTC provides a suitable option as a safe haven asset and a tool to make money.
Bitcoin Price Surges Upwards Forward
Bitcoin investors and analysts witnessed a rather dull weekend opening as BTC’s price remained rather stagnant at around $8,300 USD. Despite crossing below the $8,250 USD support level on Friday after a $500 USD drop in an hour, Bitcoin recovered in the early trading hours of Saturday to above $8,400 USD.