“Millionnaire Or Bust!”: Inside The Mind Of Bitcoin Holders
The price of Bitcoin has been on the rise in recent weeks, on the eve of the highly anticipated ‘halving’, an operation written into the DNA of the Bitcoin code, which will forever half the daily production of bitcoin (BTC). This mechanism, which was built to make Bitcoin a ‘deflationary’ currency is only one of the many characteristics which make Satoshi Nakamoto’s creation a unique specimen, at the crossroads of technology, finance and a tool of economic, social and political emancipation.
In addition to new monetary units at a constant rate (12.5 new bitcoins are “mined” every 10 minutes), Bitcoin has already very concretely brought out of nothing many new “Bitcoin millionaires”: we even estimate their number at 17,000.
“And this is just the start” has almost become the mantra of current investors and holders of the queen of digital currencies. So-called “holders” are convinced of this: having a position in Bitcoin today still means being one of the forerunners and those who will benefit from its future increase in value, which is obviously anticipated to be phenomenal.
In this article, TheCoinTribune reports on the words and beliefs of several Bitcoin holders who explain the basis for their beliefs. While ideologies and motivations vary, the certainty is the same and it does not suffer half measures: Bitcoin will make its loyal followers millionaires … or fail altogether.
Note: the comments present in this article have been anonymised in line with the tacit and universal rules of the Bitcoin fight club anonymity is a fundamental value, and nobody speaks about how much BTC they own.
Bitcoin holder vs Bitcoin trader
As a preamble, it is appropriate to remember the fundamental and irreconcilable differences between the Bitcoin trader and the Bitcoin holder.
The Bitcoin trader is not necessarily an absolute and convinced follower of “digital gold”. The trader treats Bitcoin like he treats any other tradable asset, from gold to Forex, to commodities like oil, wheat, or pig carcasses.
On the other hand, the specifics of the young crypto market, and more precisely its volatility, make it a playful hunting ground and full of opportunities for the trader … but only if they have a good heart and follow a plan.
With this said, trading Bitcoin can be a lucrative business, especially as the greats will manage to make money by betting on the rise, and also the fall of BTC.
Light years away from the frenzy of the crypto markets and the trader’s cold sweat lies the approach of the Bitcoin holder. Their mantra is simple: buy or mine Bitcoin and store it immediately and securely so that, like a great vintage, its age increases its value exponentially – literally if possible.
Speaking of which, what is the best way to earn one whole bitcoin? Is it better to buy one or could you mine one? The answer is in this article!
For the Holder/Investor, Bitcoin is the chance of a lifetime
“I’ve known about Bitcoin since at least 2011, and when it was at $80 I thought it was way too expensive. Then it went up to $800 and then $8,000, each time in record time. I realised that as soon as the coin started to run, however slowly, its mechanics kicked in. Now I’m sure the BTC will go to $80,000 and even $800,000.”
This statement could make you smile, but when compared to the path already taken by Bitcoin, it takes on a different tone.
Indeed, between the day Bitcoin was listed on a marketplace and its current price, its value increased by 200,000,000% according to economist Saifedean Ammous. In other words, seeing BTC go from 8,000 to 800,000 dollars would imply that its price is “only” multiplied by 100, far from the performance already achieved …
So, aficionados think that Bitcoin is capable of staggering performances, one of whom being Chamath Palihapitiya, president of Virgin Galactic, who sees Bitcoin reaching the million dollar mark in the coming years.
“Rather than investing in savings products that only enrich financial advisers and my bank, or in the traditional stock market given the current circumstances, I put half of my savings in BTC” (editor’s note: don’t try this at home, go instead to read the rules for reasonable investment in Bitcoin). “My goal is quite simple: to wait until the value of BTC allows me to buy my house in cash.”
This is a fairly common position: holders often give themselves a horizon consisting of a fundamental purchase once the price of BTC is high enough. A house, or investment in real estate for the most reasonable, a nice car, or even “a yacht” for the more high rollers!
“I want to make sure I have an inheritance in place for my retirement and for my children. Every month, I put satoshi aside in the two hard wallets that I bought for my kids. It’s a bit like the ISA that we’ve come to know, but I wouldn’t think of doing the same for them anymore, an ISA wouldn’t even cover inflation, and the inflation we’re going to have in the next few years.”
Another factor that stands out a lot is the desire to pass on a financial inheritance that will retain its value. Pretty logical, even though there are strong arguments that could indicate that a single BTC might one day be enough to retire.
The Bitcoin Holder/Activist
More radical and more receptive to the potential paradigm-smasher that is Bitcoin, the “holder–revolutionary” pushes the argument even further: they don’t plan to wait feverishly for Bitcoin to reach $80,000, $250,000 or $1,000,000.
No, the true aficionados envision a world to come where it would be pointless (even criminal according to Simon Dixon) to trade Bitcoin for vulgar fiat currency, whose fate is to end up in the dustbin of monetary history.
Accumulating and preciously storing Bitcoin thus becomes almost a militant and political action. This particular type of holder (which represents a hard core, and often maximalist viewpoint: i.e. they only have eyes for Bitcoin, while the Holder/Investor can be occasionally tempted by a few altcoins) piles up Bitcoin like others stock up food in their basement, in survival mode.
“One of the most important value propositions that everyone misses is quite simple: 1 BTC today will forever be 1 BTC, no matter how much fiat currency you might get out of it in 1, 10 or 50 years.”
“In contrast, 10 years ago you got 1 BTC for some sweets, 5 years ago you got an entry-level computer. In December 2017, 1 BTC allowed you to get a new car of decent standing. Who knows what 1 BTC will get you in the future?”
For this particular type of holder, the fact of “becoming a millionaire” (implying in fiat currency like the pound or the dollar) does not make the slightest sense. The only thing that matters is having enough BTC to face the future economic disasters that will mark the end of the monetary system.
“One day, 1 BTC will equal 100,000 or 1 million dollars. But it must be understood that this will be the consequence of a collapse of the economic system as we know it today. The idea is appealing, but I am not sure anyone is aware of the level of international catastrophe and the conflicts that this situation would entail. Bitcoin cannot one day reach $1 million in such a “normal” economic system – in other words, apparently more or less stable – than the one we know today. Even $100,000 in BTC will be the cause or consequence of major events and I’m not sure even bitcoin owners would be happy with.”
Billionaire Tim Draper sees the situation from another angle. He sees a BTC at $250,000 in the next few years, equivalent to the total capitalisation of gold or 5% of the world economy.
Such a progression would probably be a great source of satisfaction for holders but could only destabilise certain old economic balances. In light of the interest already shown by institutions and traditional banking players in Bitcoin, how can we anticipate the behavior of these players in the face of such a high-performing and potentially threatening asset?
Do you want to share your thoughts on this subject – or on any other for that matter – for a future TCT article? Don’t hesitate to contact us and tell us what you think!
An adventurous spirit that found out about Bitcoin whilst travelling in Japan. I became interested instantly and wanted to write about it – you can’t ignore the gold of millennials!