Becoming a Bitcoin millionaire: 0.01 BTC is said to be enough to make you rich in 10 years
In 10 years, the finite supply of Bitcoin (BTC) will be almost exhausted. This means that investors will only need 0.01 BTC to be among the top 13% in the world in the future.
While it may only cost $500 to buy 0.01 Bitcoin (BTC) today, current trends in global wealth distribution and the inevitable realisation of limited Bitcoin supplies could mean that 0.01 BTC will be worth $1 million in the future.
According to Credit Suisse’s Global Wealth Report 2020, there are 51.9 million people with a net worth of more than $1 million. The index takes into account a person’s net Bitcoin System wealth, together with their financial and real estate assets, after deducting their debts and liabilities. Although they make up only 1% of the world’s population (excluding children), these millionaires own 43% of the world’s wealth.
According to Credit Suisse’s individual wealth breakdown, 175,700 people were worth more than $50 million. Of this elite circle, 55,800 owned at least $100 million and 4,410 had assets of over $500 million.
Bitcoin’s finite supply will reach 98% in 10 years
As of 1 March, Bitcoin’s total supply consists of 18.64 million BTC, with 2.37 million coins still to be mined. In 10 years, the supply will reach 20.6 million, which is 98% of the 21 million coins in the total supply.
Bitcoin (BTC) supply
Subtracting the 1.9 million coins that have not been touched in over a decade from the Bitcoin supply limit leaves a maximum limit of 19.2 million BTC for the world’s millionaires. Conclusively, this leaves 0.37 BTC per millionaire, including coins not yet mined, assuming that the Bitcoin supply is divided equally among said millionaires.
However, if every bitcoin that has remained unmoved for five or more years is lost, a maximum of 14.57 million BTC will be available for accumulation. In this scenario, each of the world’s millionaires could own only 0.28 BTC. Assuming the supply is evenly distributed.
In the future, the wealthy will fight over 0.01 BTC
In addition to certified millionaires, there are 590 million people whose net worth exceeds US$100,000. These people should not be disregarded as potential owners, even if their purchasing power is lower.
Assuming that the global wealth ratio shown in the chart above remains the same, millionaires represent 6.32 million BTC of the remaining Bitcoin supply, which means that each individual would have the opportunity to buy only 0.12 BTC.
The remaining 590 million individuals currently worth $100,000 or more could effectively hold another 5.9 million BTC, resulting in just 0.01 BTC per adult. Note, of course, that the likelihood of more Bitcoins being lost forever over the next 10 years is quite high.
In summary, buying 0.01 BTC, which at current prices equates to an investment of around $500, can secure one a top 13% position in the world. If you compare the relative wealth concentration of the fiat and bitcoin markets, being among the top 13% of BTC holders is as exclusive as being a fiat millionaire.
Of course, the whole thing is just a little numbers experiment. But at the same time it shows how limited the supply of Bitcoin (BTC) really is. Already in 10 years, 98% of all BTC ever in existence will have been mined. The already growing global demand shows that not only individuals are currently trying to secure their share, but also companies and even states are actively vying for their piece of the Bitcoin pie. It is therefore not far-fetched to think that 0.01 BTC will already be worth a small fortune in 10 years.