A renowned on-chain analyst at Bitcoin, Willy Woo has noticed a large influx of „individual“ whales into Bitcoin, contrasting with the adoption of large institutions.
With 10 times more millionaires than Bitcoins to be bought in the world, currency can experience great scarcity, warns Willy WooNOTÍCIAS
The growth in the number of millionaires in the world – driven by the widening income disparity – is ringing a bell in several countries around the world, as this share of the richest 1% already controls about 44% of all global wealth.
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For comparison, all the poorest and developing countries together comprise 31% of the world’s wealth.
But beyond the impacts on societies and the structure of capitalist society, the generation of millions of millionaires can also impact on Bitcoin’s scarcity.
Analyst Willy Woo posted a Twitter thread on the subject, warning that the number of millionaires on the planet is already 10 times greater than the Bitcoins (BTC) available for purchase in the world, and their entry into the BTC market may have pushed the currency into the latest rally:
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Woo considers the 2019 Global Wealth Report poll numbers, commissioned by Credit Suisse. As a result, the number of millionaires in the world could put the most pressure on the currency supply, leading to a new price spike.
In 2020, institutional investors also entered the Bitcoin market en masse, which was cited as one of the reasons for Bitcoin’s consistent growth from April of the same year to historical highs in December.
In addition to the world’s 47 million millionaire group, there is also the select group of just over 2,000 billionaires in the world, part of whom are enthusiastic about the BTC market, such as the now second richest man in the world, Elon Musk.
In the same thread, Woo warns of the growth of Bitcoin whales with single person controlled addresses, according to Glassnode data, which would prove that part of the millionaires are investing in BTC:
In another video of the same thread he explains that there are two types of large investors acquiring positions in Bitcoin, the large institutions on the one hand and part of the millionaires on the other, who allot millions of dollars in the Bitcoin market at once, which has put pressure on currency prices and led to new highs.
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If the trend continues, with more institutional adoption and large investors migrating to Bitcoin – in addition to the likely devaluation of the dollar with the new emergency package of more than US$ 1 trillion – we may have a new major bullish cycle in 2021.