How a $ 1 million bitcoin worth will drive the billionaire to flipping

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Technological change in society is rapid and pronounced. Exactly a decade ago, Apple’s market cap had just reached Exxon Mobile’s market cap of $ 310 billion. In the decade since then, Apple’s market cap has risen to over $ 2.4 trillion and Exxon’s has fallen by $ 100 billion to $ 216 billion. This gap is likely to only widen over time.

Bring in Bitcoin today. Although its volatility has tested all of our patience, Bitcoin is killing it. As of this article, Bitcoin has passed the $ 50,000 mark again and its price is up over 280% year over year. Bitcoin, blockchain, and crypto are viewed by technocrats as one of the fastest growing tech sectors, as evidenced by venture capital firm Andreeson Horowitz’s creation of the new $ 2.2 company. Billions of “crypto funds”.

A well-known partner of Andreeson Horowitz, Balaji Srinivasan, who also served as Coinbase’s first CTO, wrote an article entitled “The Billionaire Flippening,” in which he articulated the structural societal effects of the ever-increasing price of Bitcoin. When cryptocurrency enthusiasts hear the term “flip,” most think it describes a period when Ethereum’s market cap dwarfs Bitcoin’s market cap. For Balaji, however, there seems to be another, perhaps more fascinating, flippening that is coming soon – the billionaire flippening. He says there will be as many Bitcoin billionaires as there are traditional billionaires when Bitcoin hits milestones like $ 100,000. When bitcoin hits $ 1 million, the world’s bitcoin and crypto billionaires will outnumber traditional billionaires.

In “The Billionaire Flippening” Balaji explains mathematics.

“There are ~ 2393 addresses with> 1000 BTC. At $ 1 million / BTC, there would be 2,393 billionaire addresses.

“Bitcoin currently accounts for about 60% of the total crypto market capitalization, so assuming a similar distribution of wealth for other coins and assuming that the total crypto market capitalization also increases with Bitcoin, multiply 2393 by 1 / 0.6, to get around 4000 crypto billionaire addresses. Today there are about 2,000 billionaires. 4000 / (4000 + 2000) = 0.66 would mean ~ 66% of billionaires are from crypto which is a surplus. As far as I remember, when my colleague estimated this, the actual threshold was $ 200,000 / BTC, as a point between $ 100,000 and $ 1 million / BTC to estimate when 2000 instead of 4000 new billionaires came from crypto. Correct curve fitting can result in a higher number given the exponential decrease in the BTC-pro address. “

To add my own math to its math, Bitcoin’s CAGR (Compounded Annual Growth) of 200% means that it is reasonable to assume that within the next two years half of the world’s billionaires will have made their fortunes in cryptocurrency ( if one bitcoin is the same). and within five years (when one bitcoin equals $ 1 million) there will be more bitcoin / crypto billionaires than any other industry combined!

This represents the greatest structural change in prosperity since the advent of personal computers in the 1980s. Since Apple set Exxon Mobile’s market capitalization in August 2011, the history of the two companies has diverged. Apple is the first trillion dollar company. It’s now at an incredible market cap of $ 2.478 trillion, or $ 2.2 trillion more than Exxon’s. In the information age, change is constant, and those who correctly predict change wins the booty. While the future of Bitcoin is uncertain, it represents the transformation of our generation. A change in the way we do banking, socialize, and are structured. So for all of you out there, HODL – most of the future billionaires in the world did!

This is a guest post by Jacob Kozhipatt. The opinions expressed are solely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.


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