No, Everyone Is Not Getting Rich Off Bitcoin, Investopedia

If you’re ruing the decision not to dip your toes into the cryptocurrency market, and feel like you are one of the few that missed out, don’t worry, you’re not. Even with the latest plunge ter prices, bitcoin and other cryptocurrency prices remain well above historical levels. The Fresh York Times published an article overheen the weekend titled Everyone is Getting Hilariously Rich And You’re Not where a bunch of white dudes dressed like they pioneered the Williamsburg hipster movement told their stories of cryptocurrency success, leaving casual readers to wonder, why not mij?

However, despite the media madness, distribution gegevens suggest you are not alone if you don’t own bitcoin, and if you do, you are certainly not getting rich. While millions read about surging cryptocurrency prices and growing market caps, the number of actual wallets widening is just a handful. (See also: The 6 Most Significant Cryptocurrencies Other Than Bitcoin)

According to bitinfo, which tracks the total number and value of bitcoin addresses, 75% of addresses are huis to less than 0.01 bitcoin, and 97.54% have a balance of less than one bitcoin. So at its current price of $Ten,100, three-quarters of bitcoin addresses are worth just overheen $100. And at the other end of the scale, the number of addresses with balances inbetween 100,000 and 1,000,000 is three, or 0.0000106%. And te monetary terms, the bitcoin millionaire hum is more a fuzz. Just 0.07% procent of addresses are worth more than $1 million whereas 74.5% of addresses are worth less than $1.

So when Erik Finman, the 18-year old schoolgebouw drop-out told CNBC he became a millionaire by investing money from his grandma into bitcoin, there’s no need to feel foolish. Erik is one of a few bitcoin millionaires.

How it compares to U.S. stocks?

If bitcoin isn’t making you rich, then the record stock market prices vereiste be right? Again, not truly the case. While concentration of wealth te U.S. stocks is nothing compared to cryptocurrency markets, the shrinking number of people benefiting from the bull market paints a pretty clear picture of the overall asset concentration ter the U.S.

On January 16, the Dow Jones Industrial Average topped 26,000 for the very first time, just 12 days since it surpassed 25,000. However, the decade-long bull rally is making fewer Americans wealthy. According to Fresh York University professor, just 13.9% of Americans directly own stocks, and the bottom 60% of U.S. households own just 1.8% of stocks. And much like bitcoin, ownership is very concentrated with the top 1% wielding more than 40% of stocks.

The Bottom Line

After a fruitful 2018 where the price of bitcoin rose from below $1,000 to almost $20,000, prices have steadied to trade ter the $Ten,000 to $15,000 range to embark 2018. However, reddit threads and talk rooms remain clustered with enthusiasts. But don’t be fooled, there are only 166,853 addresses worth more than $100,000.

Te other words, 0.05% of Americans have slightly less than the average U.S. household income te bitcoin. Minus tax. Minus transaction costs. And with the latest slide ter the price of bitcoin this petite section of society may become less well-off. (See also: Will Rising Transaction Fees Bring Down Bitcoin’s Price)

Investing te cryptocurrencies and other Initial Coin Offerings (“ICOs”) is very risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest te cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties spil to the accuracy or timeliness of the information contained herein. Spil of the date this article wasgoed written, the author does not own cryptocurrency.

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