When technological change happens in society, it happens quickly and in a pronounced manner. Precisely one decade ago, Apple’s market cap had just matched Exxon Mobile’s market cap of $310 billion. In the decade since, Apple’s market cap has gone up to over $2.4 trillion, and Exxon’s has gone down by 100 billion dollars to $216 billion. This gap is likely to only increase as time goes on.
Today, bring on bitcoin. Even though its volatility has been testing all of our patience, bitcoin is killing it. As of this article, bitcoin has once again crossed the $50,000 mark and its price is up over 280% from last year. Bitcoin, blockchain, and crypto is considered by technocrats to be one of the fastest growing sectors in technology, as evidenced by venture capital firm Andreeson Horowitz’s creation of their new $2.2. billion “Crypto Fund.”
One well-known Andreeson Horowitz partner, Balaji Srinivasan, who doubled as Coinbase’s first CTO, wrote an article titled “The Billionaire Flippening” articulating what he believes will be the structural societal impact of bitcoin’s ever-increasing price. When cryptocurrency enthusiasts hear the term “flippening,” most think it to describe a time period in which Ethereum’s market cap eclipses the market cap of Bitcoin. However for Balaji it appears that there is another, perhaps more fascinating flippening that will come soon – the flippening of billionaires. He says that when bitcoin hits milestones like $100,000, there will be as many bitcoin billionaires as there are traditional billionaires. When bitcoin hits one million dollars, the world’s bitcoin and crypto billionaires will surpass the number of traditional billionaires.
In the “The Billionaire Flippening”, Balaji explains the math-
“There are ~2393 addresses with >1000 BTC. At $1M/BTC, there would be 2393 billionaire addresses.
“Bitcoin is currently about 60% of the total crypto market cap, so assuming a similar distribution of wealth for other coins, and assuming the entire crypto market cap also appreciates with bitcoin, multiply 2393 by 1/0.6 to get about 4000 crypto billionaire addresses. Today there are about 2000 billionaires. 4000/(4000+2000)=0.66 would mean ~66% of billionaires were from crypto, which is an overshoot. As I recall, back when my colleague estimated this the actual threshold was ballparked as $200k/BTC, as a point between $100k-$1M/BTC to guess when 2000 rather than 4000 new billionaires came from crypto. A proper curve fit may give a higher number, given the exponential dropoff in BTC-per-address.”
To add my own calculus to his math, bitcoin’s CAGR (Compounded Annual Growth) of 200% means that it is reasonable to think that within the next two years half the world’s billionaires will have made their fortunes from cryptocurrency (when one bitcoin equals), and within five years (when one bitcoin equals $1 million) there will be more bitcoin/crypto billionaires than from every other industry combined!
This represents the greatest structural change in wealth since the emergence of personal computers in the 1980’s. Since Apple tied Exxon Mobile’s market cap in August 2011, the story of the two companies has diverged. Apple has become the first trillion-dollar company. It now sits at an unbelievable market cap of $2.478 trillion, or $2.2 trillion more than Exxon’s. In the information age, change is constant, and whoever predicts change correctly wins the spoils. While Bitcoin’s future is uncertain, it represents our generation’s change. A change to how we bank, socialize, and are structured. So for all of you out there, HODL — most of the world’s future billionaires did!
This is a guest post by Jacob Kozhipatt. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.
When technological change occurs in society, it occurs shortly and in a pronounced method. Exactly one decade in the past, Apple’s market cap had simply matched Exxon Cell’s market cap of $310 billion. Within the decade since, Apple’s market cap has gone as much as over $2.4 trillion, and Exxon’s has gone down by 100 billion {dollars} to $216 billion. This hole is prone to solely improve as time goes on.
Right now, convey on bitcoin. Despite the fact that its volatility has been testing all of our persistence, bitcoin is killing it. As of this text, bitcoin has as soon as once more crossed the $50,000 mark and its worth is up over 280% from final 12 months. Bitcoin, blockchain, and crypto is taken into account by technocrats to be one of many quickest rising sectors in know-how, as evidenced by enterprise capital agency Andreeson Horowitz’s creation of their new $2.2. billion “Crypto Fund.”
One well-known Andreeson Horowitz associate, Balaji Srinivasan, who doubled as Coinbase’s first CTO, wrote an article titled “The Billionaire Flippening” articulating what he believes would be the structural societal impression of bitcoin’s ever-increasing worth. When cryptocurrency fans hear the time period “flippening,” most assume it to explain a time interval through which Ethereum’s market cap eclipses the market cap of Bitcoin. Nonetheless for Balaji it seems that there’s one other, maybe extra fascinating flippening that may come quickly – the flippening of billionaires. He says that when bitcoin hits milestones like $100,000, there will likely be as many bitcoin billionaires as there are conventional billionaires. When bitcoin hits a million {dollars}, the world’s bitcoin and crypto billionaires will surpass the variety of conventional billionaires.
Within the “The Billionaire Flippening”, Balaji explains the math-
“There are ~2393 addresses with >1000 BTC. At $1M/BTC, there can be 2393 billionaire addresses.
“Bitcoin is presently about 60% of the whole crypto market cap, so assuming the same distribution of wealth for different cash, and assuming the complete crypto market cap additionally appreciates with bitcoin, multiply 2393 by 1/0.6 to get about 4000 crypto billionaire addresses. Right now there are about 2000 billionaires. 4000/(4000+2000)=0.66 would imply ~66% of billionaires had been from crypto, which is an overshoot. As I recall, again when my colleague estimated this the precise threshold was ballparked as $200k/BTC, as a degree between $100k-$1M/BTC to guess when 2000 quite than 4000 new billionaires got here from crypto. A correct curve match could give the next quantity, given the exponential dropoff in BTC-per-address.”
So as to add my very own calculus to his math, bitcoin’s CAGR (Compounded Annual Progress) of 200% implies that it’s affordable to assume that throughout the subsequent two years half the world’s billionaires could have made their fortunes from cryptocurrency (when one bitcoin equals), and inside 5 years (when one bitcoin equals $1 million) there will likely be extra bitcoin/crypto billionaires than from each different trade mixed!
This represents the best structural change in wealth for the reason that emergence of private computer systems within the 1980’s. Since Apple tied Exxon Cell’s market cap in August 2011, the story of the 2 corporations has diverged. Apple has change into the primary trillion-dollar firm. It now sits at an unbelievable market cap of $2.478 trillion, or $2.2 trillion extra than Exxon’s. Within the data age, change is fixed, and whoever predicts change appropriately wins the spoils. Whereas Bitcoin’s future is unsure, it represents our era’s change. A change to how we financial institution, socialize, and are structured. So for all of you on the market, HODL — many of the world’s future billionaires did!
This can be a visitor submit by Jacob Kozhipatt. Opinions expressed are totally their very own and don’t essentially replicate these of BTC Inc. or Bitcoin Journal.
