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Majority of Billionaires Will Be Bitcoiners When Price Hits $100,000

  • With the end of a long-term debt cycle looming, the time has never been more apt for an inflation hedge.
  • Job freedom can be attained through technology and bitcoin represents a digital “Galt's Gulch”.
  • Crypto millionaires and billionaires continue to rise with more people than ever holding crypto in their portfolios.
  • Crypto billionaires will surpass all other billionaires when BTC reaches $100,000 - 200,000.
  • A new class of billionaires with an ethos of freedom can change the world.

We are witnessing the largest transfer of wealth seen during our lifetime. Bitcoin is making average people into millionaires and giving them job freedom. Once bitcoin hits approximately $100,000, the majority of the world’s billionaires will be bitcoiners.

Six Million Americans Quit Their Jobs After Making Crypto Gains

Technologies like bitcoin allow individuals to save and invest their money, regardless of their personal wealth status or regulatory compliance with centralised entities. According to a recent survey by Civic Science, 4% of Americans, or roughly 6 million people, quit their jobs due to gains from cryptocurrency investing.

With the increase in money supply, global supply chain disruption, the devaluation of fiat currency and a rise in inflation that is now predicted to last longer than anticipated, the time has never been more apt for a shift in the economic paradigm. Cryptocurrencies are creating a new hierarchy of society. The people that understood the value of Bitcoin’s limited supply and decentralised security invested early, and their calculated risk-taking has paid off well. The new class of wealthy people will value property rights, privacy and freedom. Their ethos combined with sound money will ignite a global transformation.

Technology is Freedom

There is a lack of understanding of the meaning of freedom. When you have the freedom to choose, it suggests a mechanism to enable those choices. That mechanism is a market. In Ayn Rand’s famous book, Atlas Shrugged, the main character, John Galt, wanted to create a community of trade without government regulations. If you had an idea, you would move to Galt’s region and not pay taxes. Only the free forces of market capitalism would allow a business to succeed or fail. Bitcoin represents a digital “Galts Gulch” in that transactions are not identifiable, there is no national jurisdiction and it facilitates voluntary trade between individuals. Privacy is the foundation of western society. It allows us to think freely. Privacy is what creates entrepreneurship and Bitcoin is ultimately based on privacy - privacy from the government and large corporations interfering in your private life. Technologies like bitcoin give power back to the individual rather than the crowd.

Crypto Millennials Love Property Rights, Privacy and Freedom

Cryptocurrency has created a fair few billionaires since bitcoin began back in 2009. The amazing potential for wealth has attracted more and more people to the crypto market, especially over the past year. As recently as 10 June, 2021, in CNBC’s Millionaire Survey, some 47% of millennial millionaires surveyed have more than 25% of their wealth in cryptocurrencies. This suggests that, as the price of Bitcoin continues to rise, more and more crypto millionaires and billionaires will be minted. This will mark an epochal shift in the economic paradigm. As of 2021, there are 2,755 billionaires in the world, a mere 12 of whom (that we know of) are crypto billionaires. However, finding information about how many existing billionaires hold Bitcoin and other cryptocurrencies is notoriously difficult. It is also difficult to find out how many of the crypto billionaires are truly billionaires solely from their crypto investments. Some, such as Elon Musk, have attained much of their wealth through their innovations and business interests. As of October 2021 there are 43 Bitcoin wallet addresses that hold over one billion dollars worth of BTC but we know some of those belong to exchanges such as CoinCheck, Bittrex, Binance, and Bitfinex.

A New Billionaire Class of Cryptocurrency Investors

Of course, savvy Bitcoin billionaires are likely to have split their holdings among multiple addresses, as the Winklevoss twins are known to have done. This does not change the feeling of inevitability about the explosion of a technology that is only about twelve years old. With the changing face of the billionaire class, evolving to be self-made billionaires rather than the traditional inherited, multi-generational wealth common among European billionaires, BTC HODLers and other crypto investors are poised to disrupt the disruptors in the billionaire club - a club that expanded by 660 and more than five trillion dollars between 2020 and 2021. Blockchain and crypto will bring a new billionaire class. No one person or company can change the rules. There will only ever be 21 million Bitcoin, no matter what anyone tries to do to change that. Strong commitments extend far beyond bitcoin, to Non-Fungible Tokens, Decentralised Finance, Decentralised Autonomous Organizations and new blockchain-based products no one’s yet dreamed up. According to Balaji Srinivasan (Coinbase’s first CTO), who penned an article titled “The Billionaire Flippening”,

“Bitcoin is currently about 60% of the total crypto market cap, so assuming a similar distribution of wealth for other coins, and assuming the entire crypto market cap also appreciates with bitcoin, multiply 2393 by 1/0.6 to get about 4000 crypto billionaire addresses. Today there are about 2000 billionaires. 4000/(4000+2000)=0.66 would mean ~66% of billionaires were from crypto, which is an overshoot. As I recall, back when my colleague estimated this the actual threshold was ballparked as $200k/BTC, as a point between $100k-$1M/BTC to guess when 2000 rather than 4000 new billionaires came from crypto. A proper curve fit may give a higher number, given the exponential dropoff in BTC-per-address.”

While 66% of billionaires may come from crypto at a BTC price of 1 million dollars, a more conservative 200k BTC price could well see half or more of all billionaires coming from crypto. With the recent bull run still ongoing, and a resurgence of new active addresses in the network, the narrative of Bitcoin as an accepted medium of exchange is continuing to spread, and more people, companies, and countries such as El Salvador are adopting Bitcoin as legal tender.

A New Billionaire Class of Cryptocurrency Investors

The new billionaire class is investing in three key areas of reform: the economic system (bitcoin), the legal System (ethereum smart contracts), and the system of governance (centralised autonomous organisations) and autonomous cities. The foundation of bitcoin is cryptography. Cryptography has existed for thousands of years. It is, in its original interpretation, peer-to-peer exchange between two people without interference from a third party. Blockchain, bitcoin, and virtual communities can facilitate this type of voluntary trade between individuals. The virtual aspect is what makes it revolutionary because it eliminates the possibility of external people stopping the transaction, regulating the transaction or taxing the transaction. In the future, democracies and governments will no longer be able to tax citizens without their consent. The quality of democratic decision-making and government services is expected to rise during this new age of enlightenment. Governments of entrepreneurial countries will attract labour and talent by offering strong property rights and legal protection instead of pandering to the short-term whims of the democratic voter.

Crypto Billionaires Changing Philanthropy

Existing bitcoin billionaires have already shown signs of what this new billionaire class could do with their new wealth. With most crypto billionaires and, more generally, people involved in the crypto industry, there tends to be a more libertarian bent to their beliefs. For example, Vitalik Buterin, ethereum co-founder, donated $2m to the Charter Cities Institute which seeks to foster the development of autonomous cities around the world. Roger Ver from Bitcoin Cash donated $3m to the Foundation for Economic Education (FEE) over the past decade.

Conclusion
Decentralisation begins within the economic paradigm and the current economic turmoil can be a catalyst for structural change in the system. A new, philosophically different billionaire class will soon flip the billionaire club on its head. They can change how our society functions and what we, as individuals, can achieve when we use technology to buttress our freedoms.

Nothing in this article constitutes professional and/or financial advice. The content is provided exclusively for informational and/or educational purposes. Nothing is to be construed as an offer or a recommendation to buy or sell any type of asset. Seek independent professional advice in regards to financial, tax, legal and other matters.

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