Although other decentralised digital currencies are available for investment, Bitcoin (BTC) is the most popular. Since Bitcoin’s inception in 2009, its market cap has progressively climbed to its current level of $1.15 trillion. Similar to other cryptocurrencies, Bitcoin’s value fluctuates significantly based on several market factors.
Despite its volatility, Bitcoin is the most valuable cryptocurrency on the market presently. According to blockchain research firm Glassnode, active BTC-holding addresses increased from 1,000 in July 2010 to over 900,000 in late July 2022.
Who are the most prominent Bitcoin holders, and how high is the concentration of bitcoin whales? In this post, we examine who possesses the most bitcoins.
Bitcoin Decentralised Payments
Bitcoin is a peer-to-peer electronic cash system that enables holders to conduct online payments directly from one party to another without going through financial institutions.
In October 2008, Bitcoin’s pseudonymous founder Satoshi Nakamoto published the Bitcoin whitepaper. In January 2009, the first block on the Bitcoin network was mined, rewarding its miner with the first Bitcoin.
Miners that validate transactions and add the transaction history to the public blockchain ledger are rewarded with new bitcoins.
On July 29, 2022, the market capitalisation of Bitcoin was over $457 billion at values near $24,000. In November 2021, BTC’s market cap peaked at nearly $1.27 trillion. In 2022, however, investor attitudes altered, precipitating a crypto winter marked by a 40% decline in BTC.
Tokenomics: Hard-capped
Bitcoin has a hard cap, meaning that only a limited amount of bitcoins can be mined. There is a maximum supply of 21 million bitcoin.
In addition, the Bitcoin output rate is intended to decrease over time through a process known as halving. Every 210,000 blocks, or approximately every four years, halving events occur in which mining rewards are halved.
In May 2021, mining incentives were reduced from 12.5 BTC per block to 6.25 BTC per block, marking the most recent halving occurrence. The next halving event is expected to occur in 2024, after which BTC emission per block will decrease to 3.125 BTC.
According to CoinMarketCap, as of July 29, 2022, over 19.1 million Bitcoins have been mined, representing 91% of the total Bitcoin supply. There are fewer than two million bitcoins left to be mined. It is projected that the final bitcoin will be mined in the year 2140.
Who Owns The Most Bitcoins?
Satoshi Nakamoto, the anonymous creator of Bitcoin, is regarded as the largest bitcoin holder with over one million BTC. Nakamoto mined over 22,000 blocks and got block rewards totalling over one million bitcoins. He currently owns over 1,000,000 BTC, which has a market worth of almost $45,000,000,000 at $45,000 per BTC. Besides a few test transactions, none of Nakamoto’s estimated BTC holdings has been moved, according to River Financial.
Bitcoin ownership can be determined by examining the addresses of circulating bitcoins. There are additional 83 owners who hold anywhere from 10,000–100,000 BTC. The 87 wealthiest addresses hold a little over 14% of all the total Bitcoin in circulation.
Bitcoin distribution. Image: bitinfocharts.com
There are now just three different Bitcoin addresses that possess more than 100,000 BTC. The Binance wallet held 252,597 bitcoins worth approximately $6 billion, or 1.3% of the total BTC quantity in circulation. As of July 29 2022, the BitFinex wallet contained around 0.9% of the total Bitcoin quantity in circulation.
The third wealthiest bitcoin address holding 131,883 BTC on July 29, 2022, remained anonymous. While blockchain data is transparent and wallet balances are viewable by the public, wallet address holders remain anonymous unless they voluntarily divulge their identity.
Who Are the Bitcoin Billionaires?
Given that the price of Bitcoin swings daily and is volatile, it is difficult to determine the exact number of bitcoins required to become a billionaire. However, the current Bitcoin price can be used to determine how many you would need to possess. Using a price of approximately $47,000 per Bitcoin, a person or organisation would need to own more than 21,000 BTC to be a billionaire.
Including Satoshi Nakamoto, there are presently four Bitcoin addresses that hold enough Bitcoin to qualify their owners as Bitcoin billionaires. Nakamoto, who may be a human or a group, owns more Bitcoin than any other entity, with more than 1,000,000 BTC. The four remaining billionaires are expected to hold a total of around 672 000 BTC. Each address contains more than 100,000 BTC and up to 250,000 BTC. Most of these addresses are located at two cryptocurrency exchanges (Bitfinex and Binance), with the third and fourth locations unknown.
These are the wallet addresses:
- 34xp4vRoCGJym3xR7yCVPFHoCNxv4Twseo: 265,480 BTC
- Bc1qgdjqv0av3q56jvd82tkdjpy7gdp9ut8tlqmgrpmv24sq90ecnvqqjwvw97: 168,010 BTC
- 1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ: 121,397 BTC
- 3LYJfcfHPXYJreMsASk2jkn69LWEYKzexb: 116,601 BTC
Institutional Investors
Numerous entities, including private individuals, investment firms, and public corporations, have invested in Bitcoin. Investing directly in Bitcoin via a cryptocurrency exchange is a strategy some investors choose. However, investing in a diversified portfolio of Bitcoin-related assets is also possible. Some businesses invest in Bitcoin, and many exchange-traded funds (ETFs) invest in BTC. The largest bitcoin ETF, Grayscale Bitcoin Trust (GBTC), owns around 654,600 BTC, or nearly 3.2% of the entire supply.
Public & Private Companies
While private investors possess a significant proportion of Bitcoin, this digital currency is also supported by public and private corporations. It is feasible for corporations to invest in Bitcoin using their corporate savings, sometimes known as treasuries. Companies and investment firms such as Tesla, MicroStrategy and Digital Currency Group employ this method. As a strategy of hedging against negative-yield bonds and inflation, certain corporations have chosen to invest in Bitcoin and other digital assets.
Over 216,000 Bitcoins, or 1.029% of the Bitcoin supply, are now held by publicly traded corporations. Ten companies control over two hundred thousand bitcoins, nearly half of which were held by MicroStrategy. This firm acquired Bitcoin through bond offerings and its corporate treasury. In the meantime, Tesla possesses almost 43,000 Bitcoin.
Private corporations control little more than 174,000 Bitcoins, representing 0.829% of the total Bitcoin supply. Block.one, a Chinese firm with around 140,000 BTC, is this coin’s most significant private owner.
Government Holdings
Various nations possess vast amounts of Bitcoin as well. Currently, governments around the world hold around 260,000 BTC or 1.237% of the total supply. It is believed that Bulgaria alone holds about 213,000 BTC. In 2013, the U.S. government acquired Bitcoin from the Silk Road but ultimately sold it in 2015. If the United States government had kept the currency, it would now be worth billions of dollars. Each coin, however, was sold for $334.
FAQs
What is the total Bitcoin supply?
Bitcoin has a hard cap, which limits the total number of coins that can ever be mined. There is a maximum supply of 21 million bitcoin. Over 19,1 million Bitcoins have been mined since July 29, 2022, representing 91% of the total Bitcoin supply.
How many Bitcoin owners are there?
According to blockchain research firm Glassnode, the number of active BTC-holding addresses increased from 1,000 in July 2010 to over 900,000 in late July 2022.
How many Bitcoin multimillionaires are there?
As of July 2929 July 2022, Messari data indicated that over 67,443 wallet addresses held BTC worth over $1 million each. At the current BTC price of approximately $24,000, you would need more than 41 BTC to become a millionaire in bitcoin.
What occurs when all Bitcoins have been mined?
Due to the evolving cryptocurrency environment, it is difficult to predict what will occur when all bitcoins have been mined. Once all 21,000,000 Bitcoins are in circulation, Bitcoin’s economics will inevitably alter. In reality, even the largest Bitcoin owner in terms of quantity has no authority over the Bitcoin network, so it isn’t easy to precisely foresee future events.
What does it mean for institutions to own many Bitcoins?
In general, the ownership of a significant proportion of Bitcoin by institutions is not an issue in and of itself. When companies like Tesla invest in Bitcoin, the cryptocurrency becomes more generally acknowledged. It is feasible that as more institutions invest in Bitcoin, its adoption as a mainstream currency may expand – with fewer restrictions.
How can I purchase Bitcoin?
A Bitcoin exchange account, personal verification documents, a payment method, and a secure internet connection are required to purchase Bitcoin. Binance, CoinSpot, Coinbase, Kraken, and Gemini are among the leading cryptocurrency exchanges where Bitcoin may be purchased. According to numerous CoinSpot user reviews, CoinSpot is the best option for investors because of its competitive trading costs and premium features. After choosing the exchange, you can connect a payment mechanism, place an order, receive the tokens, and then keep them safely in a wallet.
