Major economic corporations join the Bitcoin community

While institutions praise Bitcoin for its ability to store value, many major economic corporations accept Bitcoin as their payment method, in addition to other companies and retail stores. BTC as a means of payment.

With the continued rise in price and popularity, Bitcoin’s mass adoption has skyrocketed in recent months. In addition to the notable big names when buying Bitcoin as a store of value, many companies large and small have accepted Bitcoin payments for their products as an alternative to fiat money.

Tesla leads the way

Bitcoin has had an extremely successful year as institutional investors, banks, and fund managers continue to support in many forms.

But before it became a store of value for some, it was designed to function as a peer-to-peer electronic cash system. That story was in doubt at the right time as many people refused to use Bitcoin as a form of payment.

However, the situation is changing and many companies around the world already allow payments in Bitcoin.

Arguably the biggest name on this growing list is Elon Musk’s Tesla. The electric car giant bought $ 1.5 billion in Bitcoin in January of this year but didn’t stop there. Just a few months later, Tesla announced that it would start accepting Bitcoin payments for its customers, and perhaps more importantly, they would store money in Bitcoin instead of converting them into cash.

From Expedia to Apple

The consequences of Covid-19 were dire for travel agencies. However, Expedia, one of the leading online travel agencies in the world, joined the Bitcoin movement a little while ago.

Recently, Expedia announced a partnership with Coinbase, through which it begins to allow payments in Bitcoin. Some experts believe that the move will bring more flexibility to the company and help it get through the next difficult months.

In turn, tech giant Apple announced that users can spend Bitcoin through Apple Pay. According to the company, BitPay Card can now be added to Apple Wallet. BitPay CEO Stephen Pair explains the innovation:

“We have thousands of BitPay Wallet application customers using BitPay Card. The addition of Apple Pay and the upcoming Google as well as Samsung Pay makes using BitPay Card in many places easier and more convenient ”.

Other companies that accept payments in Bitcoin

Another world-famous company on this list is PayPal. The US payments giant notes that domestic users can transact and hold BTC, BCH, LTC, and ETH directly through their accounts starting October 2020.

Based in Tokyo, Rakuten is Japan’s largest e-commerce company, a strong potential advocate of Bitcoin as well as cryptocurrency, and one of the first major corporations to adopt it as a form of payment.

Coca-Cola has announced a partnership with digital asset platform Centrapay to allow Bitcoin as a payment option. This popular beverage brand has around 2,000 vending machines that accept Bitcoin.

The current Covid-19 pandemic also positively affects a number of companies. One such example is the US e-commerce website Etsy. Etsy is famous for customers interested in handmade or vintage items and crafts.

Although Etsy does not currently have an automated system for accepting Bitcoin, vendors can designate the adoption of cryptocurrencies in their advertising to attract consumers.

Bitcoin to the NBA and Premier League

Another report reported that Luzboa, a Portugal-based retail electrical store, has switched to using Bitcoin as a form of payment. This innovation will allow Portuguese citizens to pay their electricity bills with cryptocurrency.

The Bitcoin craze has come to the English Premier League. The Southampton team announced they would reward the players Bitcoin instead of cash. The Saints players will have access to end-of-season performance rewards and they will be paid out in BTC.

Another sports club that is paying its players in Bitcoin is American NBA giant Sacramento Kings, while the Dallas Mavericks is accepting Dogecoin entrance ticket payments.

Bitcoin is replacing gold as a hedge against inflation

The increasing size of the digital asset has made it a serious contender to the traditional currency decline tool.

How to explain Bitcoin?

As John Authers, British finance pundit who spent nearly three decades as a press reporter at the Financial Times, before moving to Bloomberg in 2018 said a few weeks ago, it was difficult to get rid of digital currencies. like a classic investment bubble because it, unlike any other crazy currency in history, saw similarly horrible price increases, it formed a series of bubbles, breaking apart. and then re-executed. Not like these bubbles: They are bursts so large that they cannot be gently deflated and must burst, never return.

Bitcoin has many symptoms of an economic bubble, led by sheer excitement it inspires believers. But it’s hard to say how much Bitcoin is worth. Like gold, value is in the eyes of the viewer. It has no intrinsic value, and while the same is true for paper money, it has no government behind it.

A lot of people are grappling with the same problem, and the best Bitcoin’s value can stem from its absence. To see how this works, take a look at the strange relationship between gold and a treasury bond, in the chart from Gavekal Research. Generally speaking, treasury bonds beat gold when people are not too worried about inflation, gold wins when there are concerns about inflation. Except for now, both are declining.

This is happening despite the widespread belief in the new wave of inflation growth and a substantial amount of historical money, often inflation, as illustrated here by M2’s growth.

Gold is often seen as a hedge against inflation, but if we value it instead in terms of silver, we find that its price has almost halved since the Covid-19 crisis of last year. Gold has been more and more expensive than silver since 1980, when the prices of both precious metals increased. Last year saw a spike and then a reversal for the ages.

So what drives the price of gold?

BCA Research’s Dhaval Joshi offers another idea. The following chart shows three centuries of the gold / silver ratio. Relationships were stable until belief in the gold standard ceased and then collapsed after World War I. For decades, the soft gold standard of the post-war Bretton Woods deal, this rate has returned to its old level, only returning to its highest level after Bretton Woods broke 50 years ago.

Joshi argues that demand for gold is greater than silver is fueled by its perception as a superior “anti-fiat” asset. If people are worried about the long-term purchasing power of government-issued currencies, they will be willing to pay more for gold, as a store of value. So how do we explain the sudden drop in the price of gold relative to silver last year?

Joshi’s argument is that Bitcoin has risen as an anti-fiat alternative. It has gained popularity because liberal anti-government ideals have been with cryptocurrencies since its inception. Bitcoin’s scaling up to be more known and easily earned makes it a much more viable competitor than gold.

There is random evidence that some money has flowed directly from gold into Bitcoin. The following chart is from Charles Morris of ByteTree Asset Management, showing inflows to hedge funds holding both since May of last year.

Not all of the money left over from gold has been converted to Bitcoin, but a large portion already does. Institutions appear to be making a decision to allocate some of the money into Bitcoin as a hedge against fiat collapse (another key destination that appears to be Chinese bonds). Bitcoin’s strength over the past few months has come despite a marked drop in Google searches, which can be seen as a representation of retail interest or the kind of excitement that often accompanies a bubble.

Bitcoin’s performance over the past year is directly in line with the movement of bond yields. When yields go up, so does Bitcoin. This implies that the digital currency benefits directly from “trading on inflation expectations” or the belief that inflation is coming. And to be clear, before anyone accuses me of chart crime, this has two scales. Bitcoin tends to be much more volatile than treasury bonds. The problem is that both move in the same direction at the same time.

A more scientific analysis by research firm Quant Insight shows that bitcoin’s primary sensitivity is to inflation breakeven points. The same is true for gold. Currently, Bitcoin is positively correlated with breakeven points, up as inflation fears increase, while gold is inversely correlated.

Adding another layer, ByteTree’s Morris suggests that Bitcoin is operating like a bull market stock, and gold has never done it:

“Bitcoin seems to have it all. It’s one of the few assets that seems to benefit from rising bond yields, which we stockpile for real growth stocks and stocks whose cycles are recovering. In contrast, this is often detrimental to low-growth traditional safe assets such as gold, defensive yield stocks and bonds. Unlike bonds and defensive stocks (which are shares of businesses whether the economic cycle goes up or down, they still bring stable income, because the products and services they provide are less tolerant. (affected by economic conditions), Bitcoin and gold are both sensitive to inflation, but gold hugs are happiest when the world faces a downward spiral. In contrast, Bitcoin prefers a stronger economy, when interest rates rise. This is where we are today ”.

As a result, Bitcoin’s current momentum looks like an attempt to protect against currency decline, by means of a measured transfer from gold, which is considered a weaker anti-fiat asset for the time being. Bitcoin’s recent pause (at a level where its price is still twice as high as it was earlier in the year) coincided with a pause in the bond market, which appears to have preceded itself. The 10-year real yields have basically shifted sideways for more than a month, since their massive gains ended in late February.

If this is what motivates people to buy Bitcoin, with a rise in fear of decline and inflation justifying its sustained recovery after the crash, then the correct question is should we value it. how is it. Joshi looks at the value of an anti-fiat asset as tied to its ability to avoid massive losses. Gold can also be drastically depreciated, but there’s nothing like the massive losses Bitcoin periodically inflicts on its holders before rising again. When the price drop of Bitcoin tends to be more than three times larger, the risk can be balanced by holding three times as much gold as Bitcoin, which means buying more Bitcoin.

Is Bitcoin really a direct substitute for gold? That is a difficult question. I’m writing this article with a very small piece of gold around my ring finger. I am confident that I will never exchange my wedding ring for one made of Bitcoin. Gold has at least an intrinsic use as the raw material for much wanted jewelry. Bitcoin is very simple to fall back on. Formal action can easily restrict the use of digital assets if it is large enough to challenge a government’s monopoly to issue currency.

One final problem as gold is that there is very little to hold. Yes, there are several measures that could justify a price increase. Bitcoin has been cleverly designed so that the supply will decrease over time and thus the falling price will reduce the incentive to spend money on increasing the supply. Network effects can also make currency more useful, the more applications are developed and the faster and easier it can be used, the more viable it becomes a viable currency. But it is still not profitable when comparing it to other assets. The fact that it continues to be susceptible to major crashes disrupts its use as a medium of exchange, while ensuring that it continues to be an unreliable store of value.

The technology that underpins Bitcoin and other cryptocurrencies continues to grow. Like lasers, in its early days as a “problem finding solution,” cryptocurrencies and blockchain can solve all kinds of problems for us. This is a reasonable, if not one, hope that can be held back and priced with discounted cash flow analysis.

Currently, Bitcoin meets the demand for a wide range of alternatives to fiat currencies at a time when many are deeply skeptical of monetary policy, while promising an interesting type of growth that Technology stocks have ever done. It is conceivable that there will be widespread demand for such an asset. And while that demand is strong, it’s backed by another universal force in the market, Fomo. However, if the restructuring fails, then another Bitcoin dump could be faced.

The article was re-compiled from journalist and financial expert John Authers on Bloomberg. It is for informational purposes only, not investment advice.

How will cryptocurrencies transform business in the future?

It is estimated that only about 15% of Americans currently own some form of digital currency like Bitcoin or ETH. A majority of these investors have bought in the past 2 years. Regardless of your investment stance, it is very likely that cryptocurrencies will impact you and the future of business transactions.

The mainstream organization has been accepting cryptocurrencies

This clearly happened when MicroStrategy’s CEO Michael Saylor first publicly endorsed Bitcoin. As a publicly traded company dating back to 1989 and known for having a lot of capital in excess reserves, Saylor openly set the bell for crypto awakening and even called it more advantageous than money. face, really stunned some organizations and created a snowball effect.

Tesla has invested $ 1.5 billion in Bitcoin

Elon Musk, who calls himself Tesla’s king of technology, recently made a name for himself in his papers. From being a Dogecoin director and then buying $ 1.5 billion in Bitcoin for Tesla, Musk and Saylor sparked the institutional trend of adopting cryptocurrency. Recently, Tesla also announced that customers can now buy their cars with Bitcoin.

Paypal was also soon accepted

PayPal is one of the pioneers in opening up digital transactions. Given their history of promoting and simplifying cross-border transactions within minutes, it’s easy for them to jump into the crypto space.

Recently, PayPal implemented the ability to allow people to buy and transact with cryptocurrencies like Bitcoin, ETH, LTC, and BCH. Although, crypto enthusiasts have criticized PayPal for not allowing users to transfer their coins to private wallets. Perhaps this is a feature that could emerge in the future, and it’s a step in the right direction.

Visa and Mastercard join together

Two of the largest payment platforms in the world have both publicly confirmed the use of Bitcoin. For example, Visa is allowing transactions with stablecoins on the Ethereum blockchain.

Mastercard has followed suit and recently announced their customers will begin trading with cryptocurrencies in 2021. With two major payments giants joining in, it looks like the door is now open to adoption. more mainstream and practical use among business owners for many years to come.

Paying employees could be more convenient with cryptocurrency

Paying a group of employees living in different parts of the world can be a big problem for remote employers. Imagine you have to convert your national currency into dozens of international currencies to pay your employees.

Conducting cross-border transactions currently does not incur as much burden as currency exchange fees. With cryptocurrencies, instant cross-border transactions with minimal fees are now a reality. You can view each other’s current balances in each other’s wallets and instantly see the status of the transaction. Cutting bank fees saves both employers and employees money and can be a huge boon for the workforce.

Crowdfunding and fundraising are more transparent

People love to use online platforms to raise money. In this way, fundraising is done in a transparent way. Additionally, it opens up the possibility for people to publicly request funding and explain why. In the future, platforms like these are likely to continue to be used.

However, crowdfunding with a dedicated blockchain wallet will help the total amount raised to be made public. In a similar manner, it would allow fundraisers to avoid fees from third-party platforms without losing donor trust. The crypto wallet also allows all parties to see the amount of the donation that has arrived.

Cryptocurrencies are a viable form of payment

One of the main criticisms of cryptocurrencies is that they have no intrinsic value. Indeed, the value it has is the value the world has to offer. However, the same can be said for fiat currencies around the world that have long been far from the gold standard.

Strong advocates of keeping gold for many years have known that excessive money printing will lead to a devaluation. Since gold has a relatively finite supply and has historically been considered valuable, they use it as a hedge against inflation and a means of preventing the government from controlling their bank accounts.

Interestingly, some loyal crypto users hold coins for as many reasons as people do with gold. The main difference between the two is that the lifespan of cryptocurrencies is very short, with no proven history of long-term value.

What cryptocurrencies do well is the ability to keep your coins safe using an offline wallet and have a finite supply that encourages exponential growth in value as demand grows. With the ability to instantly transfer money to anywhere around the globe, the change in demand and overall value of cryptocurrencies could make it a popular means of payment in the world of business and peer-to-peer. .

Using cryptocurrencies for corporate equity

One of the common trends we see in the modern business world is sharing company profits with early employees. Considering the vast growth of cryptocurrencies over the past decade, offering new employees a cryptocurrency issued by companies like equity stocks could be a new trend.

In any case, it will be interesting to keep an eye on the future of cryptocurrencies. What we can see will happen is a revolution in the financial sector or a major catastrophe for investors who have made a lot of money from the development of cryptocurrencies.

Open contracts in Bitcoin Futures spiked to new highs before Coinbase listed on the Nasdaq

Open contracts (OI) in Bitcoin futures rose to new record highs before Coinbase listed on Nasdaq on April 14.

Cryptocurrency market data aggregator Glassode says that Bitcoin’s open contract exceeded $ 27 billion for the first time as Bitcoin rose to a new record high above $ 64,500. This milestone shows that traders may be hoarding at higher prices, although some are also hedging against the coming volatility.

The market share of these traders’ trading activity is on Binance, where $ 5.2 billion for positions accounts for nearly 20% of all prominent positions being held on an exchange. Followed by Bybit at $ 4.66 billion, OKEX with $ 3.75 billion, and then by Huobi, FTX, and CME with around $ 3 billion each.

Although open contracts hit record levels, Bitcoin futures volume appears to have declined over the past month, dropping from $ 117 billion on March 15 to fluctuating from $ 50 billion to $ 75 billion in April, according to crypto derivative data aggregator, Skew.

The declining volume may indicate traders becoming more and more cautious about opening new positions as Coinbase’s listing date is drawing near, with record open contracts possibly representing positions already opened in weeks and months before that.

Of the $ 75 billion BTC Futures that have been swapped over the past 24 hours, Binance accounts for more than a third of the volume with $ 26.9 billion, followed by Huobi with $ 14.5 billion, OKEx with 12.7 Billion dollars and Bybit with 10.6 billion dollars.

In contrast, open contracts in Bitcoin options have declined since the expiration of $ 6 billion in late March. The volume of options has increased in April, with data showing that many traders hedged their positions when billions of dollars were raised to protect from a crash to $ 40,000 last week.

Bitcoin is not the only market where derivatives traders are speculating, with open contracts on Ethereum futures also skyrocketing to a record high of $ 8 billion as trading volume increased over the weeks. recently.

Ethereum’s options markets have also seen an increase in activity, with open contracts pushing to a 30-day high of nearly $ 3.2 billion. Ether option volume increased by 90% overnight, rising from $ 200 million to $ 380 million.

However, many Ethereum traders seem to be looking beyond Coinbase’s listing this week, with analyst Cantering Clark noting that substantial volume is targeting prices above $ 3,200 by the end of June.

Bitcoin father Satoshi Nakamoto is currently in the Top 20 richest people in the world

According to Forbes Magazine’s 2021 billionaires list, Satoshi Nakamoto, the inventor of Bitcoin is also one of the richest people in the world. At current Bitcoin prices, data shows that if Nakamoto had 1 million BTC, he would be in the top 20 richest billionaires in the world.

The father of Bitcoin is a member of the 1% group.

The mysterious creator of the Bitcoin project has yet to be revealed and there is very little information regarding the identity of the inventor or group of inventors.

However, it is well known that Satoshi Nakamoto helped launch the network, sticking with the community until 2010. It is estimated that Nakamoto holds at least 750,000 to 1.1 million BTC since mining in the early days.

Plus, Satoshi never spent the block reward gathered during the first year Bitcoin launched. At the current exchange rate, Satoshi Nakamoto is a “genuine giant” with a fortune of more than 60 billion dollars.

This is evident if Satoshi Nakamoto has access to around 1 million BTC, which is more than $ 60 billion, excluding forks he owns. Nakamoto’s BCH is worth more than $ 650 million and BSV is worth more than $ 250 million. Satoshi Nakamoto also has access to 1.1 million BTG and all other forks in existence if the inventor has a private key.

With just the amount of BTC, this number is enough to put Satoshi Nakamoto in the top 20 positions, according to the list “Billionaires of 2021 by Forbes”. Satoshi is right above the financial media tycoon Michael Bloomberg (20) and Rob Walton (20) – the eldest son of Walmart founder Sam Walton.

Nakamoto climbed from the 159th richest person in the world to 19th in just 5 months

Bitcoin father would be in 19th place using the current BTC rate, and with the respective rates of forks like BCH, BSV and BTG, he is still a bit worse than Jim Walton – another son. of Sam Walton, founder of Walmart.

In fact, Satoshi Nakamoto is slowly moving towards Jeff Bezos’ No. 1 but what level does the BTC price need to be to get there? With a net worth of more than $ 60 billion, Nakamoto is still not a centibillionaire (Those with assets over $ 100 billion) and BTC still has plenty of opportunities to help its father shorten the gap with Bezos and Elon. Musk.

It is no exaggeration to believe that Satoshi Nakamoto could be in the position of Bezos, as the Bitcoin inventor held the 157th richest person position worldwide in October 2020 and became a member of the top 20 billionaires just after. Five months is not a simple story, but Satoshi has done it.

Bitcoin’s Pi Cycle Top indicator shows that the market is overheating

Bitcoin’s Pi Cycle Top indicator has signaled for the first time since the end of the 2017 bull run.

The indicator’s two moving averages (DMA) have crossed again and signaled a potential end to the bitcoin bull market.

Today we are going to analyze a few more factors to see if a bearish bitcoin scenario is possible.

Pi Cycle Top

Yesterday, bitcoin (BTC) hit its highest-ever weekly close above $ 60,000 a bit. Today, it made a new high of $ 63,100 after a month of trading below $ 60,000.

However, the new all-time high could be the peak when the Pi Cycle Top indicator flashes. Pi Cycle Top was formed when the 111-day MA moved up and crossed the 350-day MA x 2. When this signal flashed in history, the peak for bitcoin was confirmed.

At press time, bitcoin is trading at $ 63,051.


Weekly BTC / USD chart

The previous vertices

So far, the Pi Cycle Top indicator has signaled three cycle peaks – twice in 2013 and once in 2017. In any case, Bitcoin’s price will peak within five days of the signal. Fort.


Daily BTC / USD chart

Historically, almost immediately after the Pi Cycle Top, a bear market lasted for several years. During these cycles, bitcoin typically loses about 80% of its value over the years to come.

Is the bull market over?

If Bitcoin reaches the top of the current cycle today or in the coming days, an 80% correction will bring the price back to the $ 12,000 zone.

This is a move to bring prices below a 2017 high of $ 20,000. So far, this has never happened in the history of Bitcoin cycles.

Also consider Bitcoin on-chain analysis. As the Bitcoin Journal reported, there are no major Bitcoin indicators that suggest Bitcoin has peaked.

On the contrary, the majority of indicators show that Bitcoin has a lot of room to move higher. The supply of BTC is continuously decreasing on exchanges. HODL waves, Reserve Risk and Hodler Supply are some of the most important indicators of on-chain analysis. Currently, there aren’t any features that suggest the market has peaked.

Conclude

The Pi Cycle Top indicator flickered, indicating that bitcoin could be nearing the end of its bull market.

However, no signals from other technical indicators or on-chain agree with this result. By contrast, most of the major indicators that have marked historical peaks are far from such pessimism.

If we can assign any meaning to the Pi Cycle Top indicator, then it just shows that the market is getting too hot. This may be a signal that a relatively small correction, about 20-30% may be coming to keep the macro structure of the uptrend.

Outline of investor groups

Bitcoin’s recent volatility in value is just a series of the newest and breathtaking highs and lows since it was created in 2009. (Despite its recent fall, BTC is still five times higher. times since April 2018, before making a new peak).

Critics often boycott Bitcoin buyers, seeing them as innocent victims of the fraud bubble. But if we look carefully, we can follow the history of Bitcoin price through 5 perspectives. Each aspect reflects a different group of buyers and their contribution to long-term value growth.

Idealists

Bitcoin grew out of a small group of cryptologists trying to solve the “double spending” problem of digital money: “cash” stored in a file format can be easily copied and used over and over again. This problem is easily resolved by financial institutions, but cryptographers want a solution more like physical money: private, untraceable, and independent from third parties like the row.

Satoshi Nakamoto’s solution is the Bitcoin blockchain, an encrypted, secure public wallet that records anonymous transactions and stores it in multiple copies on multiple computers. This early Bitcoin feature is described in Nakamoto’s original White paper. It argues that Bitcoin will dominate existing forms of cryptocurrencies such as credit cards, which are more advantageous in limiting reverse fees on buyers and reducing transaction fees.

Liberalism

From the very beginning, Nakamoto also promoted Bitcoin as a freelance audience. He did this by emphasizing the lack of central government involvement and the independence of Bitcoin itself from both government and financial institutions.

Nakamoto criticized the central bank for devaluing the currency by issuing more money, and designed Bitcoin to have a finite amount at issue. He also emphasized the anonymity of Bitcoin transactions: safe, albeit more or less safe from the prying eyes of the authorities. Liberals become ardent buyers and advocates of Bitcoin, not rebels for financial reasons. They have maintained a major influence in the Bitcoin community.

Young understanding

However, these are still small elements, and Bitcoin only really took off in July 2010 when a brief article on Slashdot.org was addressed to young and tech-savvy people. This community has been influenced by the “Cali Idea” – which believes in the ability of technology and entrepreneurship to change the world.

Many people have bought small quantities at low prices and are also a bit hesitant to find themselves again as their investments have multiplied. They are increasingly volatile by its price and generally favor holding Bitcoin (Holder). Holder insisted that the Bitcoin price would “to the moon” (from being said 178,000 times in bitcoin forums), and said he would take the lamborghini cars from the profits. Unreasonable taxation hurts the community, and a commitment to holding Bitcoin maintains its value.

Investors

The remaining two groups contribute to the history of Bitcoin in a more conventional manner. The fourth group includes investors who are attracted to Bitcoin’s volatility and price peaks.

On the one hand, we have day traders who want to exploit the volatility of Bitcoin’s price by buying and selling very quickly to take advantage of short-term price moves. Like all investors in other asset classes, they have no real return in the big picture or intrinsic value but just the price of the current day. They only have the extreme “buy” and “sell”, in order to try to influence the market.

On the other hand, we have people drawn by price bubble news. In essence, the category of bubbles in the press is often designed to discourage investors from potentially having the opposite effect. These investors are only interested in what others are about to pay Bitcoin for in the short to medium term.

Those who balance categories

The last and newest group for Bitcoin investors are portfolio balancers: more complex investors buy Bitcoin to prevent potential risks in the financial system. According to modern portfolio theory, investors can reduce the risk of their portfolios overall by buying Bitcoin because its top and bottom are not in line with their other assets. This is how to protect when the market collapses. This group is emerging, but it could boost Bitcoin’s acceptability among mainstream investors.

Bitcoin’s price will thus be shaped on a series of aspects that it draws from the wave of buyers’ success. While mainstream critics often boycott Bitcoin because it lacks intrinsic value, the market value of the asset depends on the handling of such aspects.

Bitcoin may collapse again, but like any other asset. Investing in Bitcoin also can’t risk more or less than investing in tech companies that are on the stock exchange without ever making a profit.

How many Bitcoin millionaires are there by 2021?

On a crypto show, host Jessica Walker answered the question: How many Bitcoin millionaires are there? She will also take a look at some of the most famous Bitcoin billionaires.

As the price of BTC continues to soar, the “hodler” cannot help wondering how much money they will have if they invest earlier. But among those who have done so, how many Bitcoin millionaires do we have?

The number of millionaire hodlers increased sharply

Since Bitcoin started the cryptocurrency revolution in 2009, the space has grown significantly. The growing level of adoption is what propelled the price of BTC to almost $ 62,000 earlier this month.

According to crypto data tracking company BitInfoCharts, there are currently more than 100,000 people with at least $ 1 million or more stored in BTC. This is up from the 25,000 BTC level of millionaires four months ago. A year ago, there were only 15,000 Bitcoin millionaire accounts.

Keep track of wallets holding lots of Bitcoin

There may also be some anonymous Bitcoin billionaires. As of January 2021, 25 individual BTC addresses hold more than $ 1 billion, according to BitInfoCharts. Five of them belong to exchanges: Binance, Bitfinex, Bittrex, CoinCheck, and Huobi. Additionally, some “hodlers” may choose to keep their BTC in various addresses, such as the Winklevoss twins.

While many BTC billionaires will likely remain anonymous, some are contributing a lot to the development of the crypto market. Here are some of the top names.

Micree Zhan

Although not recognized by name, but Micree Zhan is actually the richest BTC billionaire known. His net worth in Bitcoin was calculated to be around $ 3.2 billion as of January 2021. Zhan is the co-founder of Bitcoin mining hardware maker Bitmain.

Micree Zhan – Co-founder of Bitmain

Chris Larsen

Chris Larsen is the second richest BTC billionaire known with a net worth of $ 2.7 billion. Larsen is the co-founder and executive chairman of Ripple. However, his assets could be at risk as he is currently being sued by the US Securities and Exchange Commission (SEC).

Chris Larsen – Ripple President

Michael Saylor

Although Michael Saylor owns only $ 600 million in crypto, he holds a $ 1.2 billion stake in MicroStrategy. Saylor is the company’s CEO and the company has been actively buying Bitcoin since August 2020.

Michael Saylor – CEO of MicroStrategy

Changpeng Zhao

Binance’s founder and CEO has also made quite a bit of money since the exchange launched in 2017. As of 2021, Changpeng Zhao is now worth $ 1.9 billion, according to Forbes.

Changpeng Zhao – CEO of Binance

Tim Draper

Tim Draper is a well-known investor, making some wise acquisitions in the 1990s and 2000s. In 2014, he bought nearly 30,000 Bitcoins from the US Judicial Police during an auction. production of the dark web Silk Road. His crypto vault is worth $ 1.1 billion.


Tim Draper – Investor

Brian Armstrong

Brian Armstrong is currently the youngest known crypto billionaire at the age of 37. He joined the crypto space in 2012, becoming a co-founder of San Francisco-based exchange Coinbase. His estimated net worth is $ 1 billion.

Brian Armstrong – CEO of Coinbase

Matthew Roszak

Matthew Roszak is a co-founder of blockchain infrastructure provider Bloq. He bought his first Bitcoin in 2012. His crypto net worth is estimated at $ 1.2 billion.

Matthew Roszak – Co-founder of Bloq

Tyler and Cameron Winklevoss

Using the money from the settlement with Facebook, the twins became early investors in Bitcoin. They are also the founders of the Gemini exchange. The Winklevoss Brothers are holding around $ 1.4 billion worth of Bitcoin each.

Tyler and Cameron Winklevoss – Co-founders of the Gemini exchange

Satoshi Nakamoto

Bitcoin creator Satoshi Nakomoto holds far more BTC than the rest. While potentially a pseudonym, anyone who owns an address related to him has $ 40 billion in Bitcoin.

Bitcoin mining difficulty hit an all-time high when new mining equipment was delayed into operation

Bitcoin’s mining difficulty hit an all-time high after rising around 6%, a move after a record month in revenue for Bitcoin miners when the new generation ASIC came into operation.

Difficulty is a relative measure of the amount of resources needed to mine Bitcoin. This measurement increases or decreases depending on the amount of power consumed or the hashrate generated by the network at a given time. Bitcoin is programmed to adjust its difficulty every 2016 blocks or roughly every 2 weeks to ensure that new blocks are mined at a steady rate.

This difficulty was measured on a relative scale when Bitcoin launched with a mining difficulty of “1”, the lowest level ever. (Difficulty works like a Google Search score in that the scoring system is internal and has no external reference point or unit of measure.)

As of today’s correction, Bitcoin’s mining difficulty at the moment is 24.5 trillion. According to data from BTC.com, this is a 6% increase from 21.8 trillion, making it the 2nd largest correction of the year and the 5th increase in six periods of medium difficulty adjustment. by.

Difficulty adjustment is arguably one of Bitcoin’s most important features as it ensures relatively stable block times, while also preventing a large miner from taking up too many hashrates.

New ASIC coming into operation leads to increased difficulty and hashrate

This latest adjustment is a notable change, said Compass CEO Whit Gibbs, because it could be because tens of thousands of new mining devices that have been pre-ordered in the ASIC supply chain are about to come in. work.

The current correction, he said, is just a sampling step of the hashrate flood that will come online in 2022, when more pre-order shipments are filled.

“Today’s moderate increase in difficulty is not surprising. I hope that’s just a bit of what’s to come by the end of this year and in 2022, when delayed batches of mining equipment begin to arrive and roll out. The pending hashrate flood is about to enter the market, which will only continue to push Bitcoin’s mining difficulty higher, which will watch along with Bitcoin’s price.

As the price of Bitcoin skyrocketed, investments in mining also went with it. Miners in North America such as Hut 8, Marathon, Blockcap and others have used the year 2021 as an opportunity to drastically expand operational capacity. As the miners go live, Bitcoin’s hashrate and difficulty are increasing along with miners’ revenue, reaching a record $ 1.5 billion in March.

Bitcoin mining revenue hit a record $ 1.5 billion in March

With Bitcoin’s price setting an all-time high in March, miners have benefited greatly.

According to a recent report by blockchain analytics firm Arcane Research, Bitcoin miners received more than $ 1.5 billion in Bitcoin block bonuses and fees last month.

Although mining revenue decreased at the end of the month due to reduced transaction volume, the total sales for the month still set a record.

The end result is close to the prediction from mid-March, when blockchain data firm Glassnode reported that miners were earning an average of $ 52.3 million per day. Record turnover for the day was $ 64.7 million on March 14, the day after Bitcoin’s price hit a new all-time high of $ 61,683.

Mining is how transactions are added to the Bitcoin blockchain. Miners often coordinate with larger miners using specialized equipment to run Bitcoin software. This process provides the network with security as miners lend their computing power to solve cryptographic puzzles. Miners who solve the first puzzle can validate a new batch or block of transactions and receive the newly mined Bitcoin, plus any transaction fees people paid to help boost their transactions. Online.

Currently, miners receive a block reward of 6.25 BTC with a new block mined every 10 minutes. What may be surprising is that the block rewards have been higher. From July 9, 2016 to May 11, 2020, miners earn 12.5 BTC for each block mined. For the previous four years, it was 25 BTC, and for almost the first four years of Bitcoin’s existence the block reward was 50 BTC.

That said, Bitcoin mining revenue is increasing despite the drop in block rewards, shrinking supply has pushed the price up. Indeed, price is the main reason to increase sales. Transaction fees play a much smaller role, with average fees falling in March due to a drop in the number of transactions, according to statistics from Blockchain.com.

Transactions are confirmed every day

Sales are, of course, not the same as profits. But mining profits have been steadily increasing since October 2020, according to statistics from BitInfoCharts. In March, it hit its highest level since July 2019.