Bitcoin Births Another Set Of Millionaires As BTC Nears $24,000

lizarder

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Quote from: Hydrogen on March 01, 2023, 06:57:04 PM

Is it possible that the ratio of bitcoin not being actively bought or sold. Versus the net sum of bitcoin actively traded on exchanges. Could eventually become a leading indicator for bitcoin scarcity and deflation? Is the statistic relavant within the grand scheme of things?

In my understanding this is quite possible, if it is connected to the concept of holding bitcoins, so that the bitcoin indicators that are active on the exchange will decrease while the holdings will continue to hold. Isn't the number of bitcoins available limited and very likely to be eroded through holding and active purchases on the exchange, although we don't know for sure in what year the availability of bitcoin will run out if the concept of Holding increases, for me nothing is impossible.

Quote from: Hydrogen on March 01, 2023, 06:57:04 PM

I'm considering whether reduced BTC volume could translate to greater demand. Which might correlate with a price spike.

The relationship between demand and supply may be in effect, reducing volume creates a spike in demand, this correlation can also be combined with bitcoin being actively traded on exchanges.

Currently the tendency is for people to hold bitcoin in large quantities for those who have the financial means, while active buying on exchanges continues to be bought by people who are increasingly aware that bitcoin will become an unbeatable superstar in maintaining value and as the best asset. The percentage of active bitcoin purchases on exchanges is increasing plus the number of holdings is getting bigger, thus affecting the trading volume of bitcoins on exchanges for the following years. It is this reason that will push bitcoin to reach a new, bigger price level.

so98nn

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Great, so finally bitcoin is getting recognised as more of a hodl asset rather than spending it as soon as it moves a dollar up. Lolz. I hope this will bring more attention towards its long term use case rather than just spending it on bullish trends. In fact the more they will resist selling the more it get valued.

However, it’s also sadden to see that peeps are still believing their bitcoins are in safe hand by keeping them on the exchanger. The shift I. The exchanger reserve is good to know but not in terms of safety really.

The hodling shift of cold storage should increase a lot with the time. That would be concrete thing to know man.

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Quote from: temple on March 02, 2023, 05:43:34 PM

~snip~
We also don't know whether some of those untouched wallets are owned by people who have had other wallets but took profits with those coins. There are a lot of questions that just can't be answered, and hence, these analyses often don't lead to solid conclusions.

Every year the same stories, only the numbers change a little, and they are all just guesses and nothing more. At the end of the day, companies that conduct such analyzes must somehow justify their existence and advertise themselves a bit - and if we consider that one of the largest CEX recently published a survey in which it claims that some 75 million Americans will buy Bitcoin by the end of the year, it seems that the age of recycled news is in full swing.

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Quote from: stompix on March 02, 2023, 04:45:39 AM

Quote from: Hydrogen on March 01, 2023, 06:57:04 PM

They claim that the BTC uptick in early 2023 also created newly minted crypto millionaires.

It's not new millionaires, those were millionaires even in 2017 and in 2020, and a few thousands of those addresses actually belong to Satoshi and other early miners, so you could cut that spike of 30k easily by a factor of 10 to get a number closer to reality.

Also how does anyone know whether they are "new" millionaires? Solely basing that conclusion on untouched Bitcoin wallets doesn't make a lot of sense.

My theory rather is that those who bought very very early on and never touched it, but are still alive and have the keys, could very well have been millionaires before they bought Bitcoin. I respect those a lot who haven't had a lot of money, bought Bitcoin during the early days and then held even when it first peaked at around 20k in 2017 and are still holding. Who would do that? There is just no way that some dude with hardly any savings is a Bitcoin millionaire but doesn't sell a single coin. But if you are rich and you decide to for the HODL marathon, then you might well be holding even when it hits 100k depending on your gut feeling and perhaps analysis because you think you know where this is going in the future.

I know a lot of people who sold way below the peaks. They made good profit but eventually complained. Cheesy

But as I said at some point when you bought cheap and are not a rich guy, you are behaving ruthless towards yourself when you keep holding when Bitcoin has bull runs potentially giving you a 20,000% or even more than that.

We also don't know whether some of those untouched wallets are owned by people who have had other wallets but took profits with those coins. There are a lot of questions that just can't be answered, and hence, these analyses often don't lead to solid conclusions.

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Quote from: Hydrogen on March 01, 2023, 06:57:04 PM

They claim that the BTC uptick in early 2023 also created newly minted crypto millionaires.

It's not new millionaires, those were millionaires even in 2017 and in 2020, and a few thousands of those addresses actually belong to Satoshi and other early miners, so you could cut that spike of 30k easily by a factor of 10 to get a number closer to reality.

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While being a millionaire is still a huge huge luxury thing — unfortunately due to inflation, the word "millionaire" doesn't have that much of an 'oomph' as it had a decade ago.

Quote from: The Sceptical Chymist on March 01, 2023, 10:42:54 PM

So just go ahead and paint a big red 'L' on my forehead. What a life.

You might've not made as much as the bitcoin OGs that over-allocated in the past, but I'm pretty sure you still did well holding BTC.

davis196

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Having more BTC on cold wallets rather than centralized exchanges means that most Bitcoiners are waiting for a bull run. This is a good sign.
Also, this statistic would mean higher price volatility and price elasticity(a small increase in demand would lead to a decent increase in the price).
Anyway, I couldn't care less about the amount of Bitcoin millionaires. If the price drops below 20K or 15K, most of those millionaires won't be millionaires. We are still in the crypto winter and nobody knows if there's going to be another price drop, rather than a price pump.

Raflesia

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67000 wallets containing 1 million dollars is definitely not a joke Cheesy

The condition of bitcoin which has crashed over the last few years has made us have a quite large opportunity which indeed seems to be put to good use by most people. I love bitcoin and have been into some buying but not this many although it is still very good for me if you look at it in terms of a percentage gain from the previous $15k.

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Quote from: Hydrogen on March 01, 2023, 06:57:04 PM

Is it possible that the ratio of bitcoin not being actively bought or sold. Versus the net sum of bitcoin actively traded on exchanges. Could eventually become a leading indicator for bitcoin scarcity and deflation? Is the statistic relavant within the grand scheme of things?
I'm considering whether reduced BTC volume could translate to greater demand. Which might correlate with a price spike.

Yes you are right, Btc has a deflationary nature and it can bear pressure of inflation. The factor you tried to explain (in a detailed manner, very impressive). There are more the 5 factors that causes btc to bear deflationary pressure.

Limited Supply (everyone is aware)
High Demand
Deficiency of Btc on Exchanges ( as you explained above)
Increment in Storing BTC as "VALUE" (as you explained above,
less mining reward = less supply in the market that cause high demand. Ultimately a spike in btc price.

Overall, if the number of on-exchanges holding decreases then it means there will be increase in storing btc in cold wallets which in return decrease the supply in the market (trading supply). This will cause spike in btc price as low supply and high demand can cause huge upward spikes in it.

Quoted article was very informative by the way.

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Quote from: The Sceptical Chymist on March 01, 2023, 10:42:54 PM

Quote

According to data from Glassnode, there are a total of more than 67,000 BTC wallets worth over a million dollars or more on the blockchain.

Jesus, that's a lot. Even though I got interested in bitcoin more than eight years ago and had the opportunity to buy it when it was relatively cheap, I just never had the faith that it'd go as high as it did. I remember all the threads speculating as to when bitcoin would reach $1000 and then $10k, and then $50k. Usually I'd reply that we'd have to be in a global economic crisis for any of those valuations to be reached--and obviously I was so fucking wrong that it hurts me deeply to think about what could have been.

But nobody knew how high the market was going to go. The difference between those 67,000 wallets and my own is that the owners of all those other ones did have that faith in bitcoin and did buy enough of it at whatever price in order to make them millionaires.

So just go ahead and paint a big red 'L' on my forehead. What a life.

That's true I am not yet a millionaire but I am sure some Nigerian members that have been hodling some percentage or all of their campaign earnings might be privileged millionaires by now, not in the USD but in my local currency the NGN. The Nigerian currency has been losing its value and never recovering making most Nigerians convert and keep their funds in bitcoin. Bitcoin has many features that give something positive to the financial lives of its users. Hodling bitcoin is easier in developed nations that have good economies and not unemployment-ravaged countries in Africa. Who knows? Bitcoin price might keep increasing and more millionaires will keep emerging.

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Quote from: Cuenta Alternativa on March 01, 2023, 11:25:51 PM

The problem is that being a millionaire in dollars means less and less. The cumulative inflation rate since bitcoin was launched until today is 35% (https://smartasset.com/investing/inflation-calculator).

This would be the official inflation, so we can actually assume that 1 million today is at most half a million in 2009. At this rate, by 2030 there will be many more millionaires in bitcoin in two ways, because bitcoin will continue to appreciate in value and because the dollar will continue to devalue, but being a millionaire will not mean much by then.

Apparently, however, the appreciation of Bitcoin's price value in US dollars since its creation remains much higher than the cumulative inflation rate from that point in time. 35% is a negligible number compared to Bitcoin's tens of thousands in percentage growth. But you are right that as Bitcoin's price value increases, the value of the US dollar and other fiat currencies are also fast decreasing. So it probably adds to the rising price of Bitcoin that fiat's purchasing power is continuously weakening.

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The problem is that being a millionaire in dollars means less and less. The cumulative inflation rate since bitcoin was launched until today is 35% (https://smartasset.com/investing/inflation-calculator).

This would be the official inflation, so we can actually assume that 1 million today is at most half a million in 2009. At this rate, by 2030 there will be many more millionaires in bitcoin in two ways, because bitcoin will continue to appreciate in value and because the dollar will continue to devalue, but being a millionaire will not mean much by then.

The Sceptical Chymist

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Quote

According to data from Glassnode, there are a total of more than 67,000 BTC wallets worth over a million dollars or more on the blockchain.

Jesus, that's a lot. Even though I got interested in bitcoin more than eight years ago and had the opportunity to buy it when it was relatively cheap, I just never had the faith that it'd go as high as it did. I remember all the threads speculating as to when bitcoin would reach $1000 and then $10k, and then $50k. Usually I'd reply that we'd have to be in a global economic crisis for any of those valuations to be reached--and obviously I was so fucking wrong that it hurts me deeply to think about what could have been.

But nobody knew how high the market was going to go. The difference between those 67,000 wallets and my own is that the owners of all those other ones did have that faith in bitcoin and did buy enough of it at whatever price in order to make them millionaires.

So just go ahead and paint a big red 'L' on my forehead. What a life.

Hydrogen

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It’s no news Bitcoin has since been a millionaire-maker ever since its massive surge from its all-time low of trading below a dollar back in the day. And now, once again, data from on-chain analytics firm Glassnode shows the largest cryptocurrency by market cap has made a new set of millionaires.

This comes after BTC dipped below $20,000 last year creating a chance for smaller investors to be able to afford the accumulation of the asset, therefore, making them millionaires following its price spike above $20,000 earlier this year.

Bitcoin Birthing Millionaires

According to data from Glassnode, there are a total of more than 67,000 BTC wallets worth over a million dollars or more on the blockchain. Notably, BTC trading above $20,000 has since been a maker of millionaires as the price is prominent for a notable high.

The $20,000 price tag was once a BTC all-time high in one of its halving cycles in the past, and according to Glassnode, when BTC/USD makes a move above or below this price range, millionaires are either made in large numbers or lost in abundance.

Last year, when Bitcoin plummeted to just above $16,000 following the FTX crash, a large number of several millionaire wallets lost their status immediately.

However, since the beginning of the year, when Bitcoin spiked by 40% to trade above the $20,000 region, the story has reversed as the asset has not only made many regain their millionaire status but has also birthed another set of millionaires.

On January 13 when BTC/USD was just trading under the $20,000 price tag, BTC wallets worth more than $1 million were just around 27,000. Meanwhile, by the next day when BTC traded $1000 higher, that amount increased to 65,000 with the majority of wallets holding 50 BTC.

Image link: https://i.ibb.co/M9C8rpz/one.jpg

Notably, at Bitcoin’s all-time high of $69,000 in November 2021, BTC wallets worth $1 million or more cumulated to nearly 113,000. Furthermore, not only wallets worth millions have surged over the past month, but wallets of “wholecoiners” holding 1 BTC or more have also increased.

Image link: https://i.ibb.co/RB13sxx/two.jpg

Glassnode shows that this category of holders is now nearing 1 million with a total of 982,726 as of February 28.

Dormant BTC Surpasses BTC On Exchange Reserves

Prior to the report of the number of millionaires BTC has birthed, yesterday, News BTC reported a change in BTC circulating supply. According to the news outlet citing data from Glassnode, the amount of BTC that is dormant has exceeded the available Bitcoin for purchase on exchanges.

Co-founder of Bitcoin-focused research firm Reflexivity, William Clemente, noted: “There is now more Bitcoin that hasn’t moved in at least 10 years than there is on exchanges.” Meanwhile, BTC has recorded an increase in value over the past 24 hours.

Image link: https://i.ibb.co/q54jZKz/three.jpg

At the time of writing, BTC trades just above $23,000 with a price of $23,774 looking to cross the $24,000 mark. The asset currently has the highest 24-hour trading volume of $31.7 billion, the largest among other crypto volumes in the market.

https://www.newsbtc.com/news/bitcoin/bitcoin-births-another-set-of-millionaires/

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This statistic might indicate bitcoin is being HODL'ed and hoarded to high degrees. Which could contribute towards it becoming a more deflationary and scarce asset.

Co-founder of Bitcoin-focused research firm Reflexivity, William Clemente, noted: “There is now more Bitcoin that hasn’t moved in at least 10 years than there is on exchanges.” Meanwhile, BTC has recorded an increase in value over the past 24 hours.

They claim that the BTC uptick in early 2023 also created newly minted crypto millionaires.

Is it possible that the ratio of bitcoin not being actively bought or sold. Versus the net sum of bitcoin actively traded on exchanges. Could eventually become a leading indicator for bitcoin scarcity and deflation? Is the statistic relavant within the grand scheme of things?

I'm considering whether reduced BTC volume could translate to greater demand. Which might correlate with a price spike.

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