Bitcoin has been gaining tremendous momentum lately. It broke through the resistance at 30k, and the next target is set at 40k. The financial markets and investors are gradually realizing what many of us already know – Bitcoin is the scarcest and most valuable asset in the world. Now, you might be wondering, how much Bitcoin do you need to succeed in these markets? How much Bitcoin is required to belong to the world’s top 1% in terms of wealth? Stay tuned because in about ten minutes, we’ll dive into Chico Crypto for answers.
Bitcoin: The Most Scarce and Valuable Asset:
Let’s begin with the foundation. Bitcoin is an asset with an incredibly limited supply of just 21 million coins. Every four years, its inflation decreases due to halving, which halves the emissions of BTC. This means that the last of the 21 million Bitcoins will be mined around 2140, with no new Bitcoins ever coming into existence.
While some might argue that gold is the most valuable and scarce asset globally, the reality is a bit more complex. Gold, as a whole, currently holds a higher value than Bitcoin, with a market cap of over 13.15 trillion. However, gold isn’t as scarce as one might think. It continues to be discovered in various parts of the world, affecting its value. Last year alone, Uganda unearthed an estimated 13 trillion dollars’ worth of gold. When this additional supply enters the market, gold’s price per ounce might fall.
The Bleak Future of Gold:
Gold’s future prospects are not as bright as they once seemed. NASA announced a mission named “Psyche,” aimed at studying and eventually mining an asteroid with 10,000 quadrillion dollars’ worth of gold deposits. This mission is now underway, marking gold’s abundance not just on Earth but potentially throughout the universe.
In contrast, Bitcoin is truly scarce. While it is known that the supply is limited, it’s even less abundant than most people realize. Unlike gold, which can be lost and found, a significant portion of the lost Bitcoin is gone forever. Satoshi Nakamoto, Bitcoin’s creator, emphasized the importance of lost coins, as they contribute to everyone else’s coins becoming slightly more valuable.
Estimating Lost Bitcoin:
Cane Digital research has conducted an insightful study that highlights this scarcity. Their research suggests that there will never be more than 14 million Bitcoins. Since 2010, it’s estimated that about 4% of the available Bitcoin supply is lost every year. This calculation puts the current available supply at approximately 13.9 million coins, well below the widely publicized 18.3 million total supply figure. Therefore, about 28% of all Bitcoins have been irretrievably lost.
How Much Bitcoin Do You Need to Secure Wealth?:
Now, let’s address a significant question: how much Bitcoin do you need to secure a lifetime of wealth? How can you join the world’s richest in terms of Bitcoin holdings?
In 2020, an article titled “How Much Bitcoin Does it Take to Break Into the 1% Club?” provided an answer. It stated that owning 0.28 BTC statistically guarantees you a place in the richest 1% of the world in Bitcoin terms. This calculation was based on a world population of 7.5 billion. However, this figure needs an update as the global population has increased since 2020.
Revised Figures for Wealth in Bitcoin:
With the current world population exceeding 8 billion, holding just 0.17 BTC statistically places you in the top 1% richest in Bitcoin terms. Given Bitcoin’s recent price of around 35,000 dollars, acquiring 0.17 BTC would require an investment of approximately 6,000 dollars.
Global Adoption of Bitcoin:
Many might question the achievability of this figure, considering the world’s adoption of Bitcoin. However, it’s important to note that Bitcoin is on a path toward global adoption. The estimated number of cryptocurrency adopters worldwide has surpassed 420 million, constituting about 4.2% of the global population. The growth of adoption is evident when compared to estimates from just a year ago when there were approximately 320 million global crypto users.
This trend of increased adoption is likely to continue, and Bitcoin is poised to achieve over 60% global adoption by 2040. As Bitcoin’s adoption grows, acquiring a significant portion of it may become increasingly difficult.
In conclusion, now is an opportune time to accumulate Bitcoin and potentially become part of the world’s financial elite. If this current bull run gains momentum, these prices may never be seen again, especially considering the involvement of institutions. The launch of Bitcoin ETFs is on the horizon, and this institutional interest is a key driver of recent price movements.
With increasing adoption rates and the potential for Bitcoin to become the majority’s choice, securing your position in the top 1% richest in Bitcoin terms may prove more challenging as time progresses.