In the late 1990s, during one of Berkshire’s shareholder meetings, Charlie Munger famously declared, “The first $100,000 is a b—-, but you gotta do it.” He emphasized the importance of attaining that milestone, no matter the sacrifices required. This sentiment resonates in the world of Bitcoin, where over 450,000 BTC addresses now hold Bitcoin valued at $100,000 or more at current exchange rates. As we entered 2024, the number of addresses reaching this threshold exceeded 450,000 for the third time. The Bitcoin market achieved this feat twice before during the halving cycles of 2020, in February and October of 2021.
The Landscape of Bitcoin Ownership
Despite its high-velocity and high-tech nature, the Bitcoin economy displays elements of egalitarianism. Out of the 19.7 million BTC already mined, individuals hold the majority, with 11.97 million BTC in their possession. Data from Bitcoin Treasuries indicates that Satoshi Nakamoto, the elusive creator of Bitcoin, may own around 1.1 million BTC. Governments account for 565K BTC, while hedge funds and ETF issuers own approximately 818K BTC. Millennials, born between 1981 and 1996, hold a significant portion of total crypto ownership. Survey data from Bankrate reveals that 57% of the total crypto ownership belongs to Millennials. Considering current BTC prices, it is estimated that around 256,500 Millennials worldwide have entered the Bitcoin two-comma club. With the potential for further appreciation of the digital asset, this number is likely to grow.
Strategies for Financial Growth
In pursuit of financial success, CNBC offered seven tips on how to make $100,000 in a year. These include budgeting to save, automating your savings plan, maximizing employer-matched contributions, paying off debt swiftly, saving tax refunds and work bonuses, and exploring avenues to increase your income. Once you have saved your first six figures, Charlie Munger suggests that you can ease off slightly.
This data highlights the changing landscape of financial success and wealth accumulation, particularly among Millennials who are leveraging assets like Bitcoin to secure their future. As the Bitcoin economy continues to evolve and attract a broader demographic, the $100,000 milestone may become more attainable for a larger segment of the population.
