As the cryptocurrency market outgrows its transformative stage and is witnessing mainstream adoption, different types of entities are hopping on the bandwagon, seeking ways to experiment with it. And despite a harsh year for Bitcoin and its competitors that scared many investors away, these days are marked by increased optimism as investor sentiment is shifting to positive.
The latest improvements in the crypto sphere led to a surge in individuals and institutions looking to capitalize on such investments, introduce cryptocurrency services, and profit from it in any way they deem advantageous. Additionally, individuals use different means to invest in cryptocurrency depending on their needs. While placing orders with a debit card is one of the most common ways to add digital coins to the wallet, another option is to buy Bitcoin with a credit card. These best suit the newcomer to the cryptocurrency stage as they involve the minimum effort and disregard the amount of money the investor holds.
Cryptocurrencies have long been a hot topic in the financial world, as new stances on them make the headlines every day and more additions emerge on the market. However, one of the most burning questions regarding the widely-debated digital assets is who owns the most Bitcoin.
Public businesses, celebrities, institutional investors, and miners make up the majority of Bitcoin holders. But what is it about this token that attracts such large crowds?
Let’s discover more about the most significant categories of Bitcoin holders to gain an insight into the cryptocurrency trend.
Celebrity Investors
Cryptocurrencies have long seen tremendous endorsements from celebrities and other public figures, partly due to their ability to increase demand by backing up specific tokens. Some big names include Serena Williams, Paris Hilton, 50 Cent, Eminem, and Matt Damon, all joining the increasing number of famous individuals looking to gain a slice of the pie.
Moreover, public promotion is a hot topic these days. Artists like Ne-Yo and Austin Mahone face backlash for using social media and fame to boost their cryptocurrencies. Encountering legal problems for promoting projects and using illegal techniques for monetary purposes leads to charges from US regulators and other countries around the globe. However, this doesn’t mean that the portion of Bitcoin that resides in celebrities’ hands is diminished.
From non-fungible tokens to music albums, many high-profile individuals, including entrepreneurs, musicians, actors, and other notable figures, have picked Bitcoin networks to expand their businesses.
The Bitcoin owners holding the token for different purposes than those promoting their projects are investing in BTC to leverage their influence. Their involvement is well-received by the crypto community, helping digital money appeal to a broader customer base. At the same time, celebrities whose investment portfolio includes the reigning digital coin and its competitors use sound reasoning and believe in cryptocurrency’s resurgence. They have profound knowledge about this new financial market, and some deem cryptocurrency as the future of payments, which is an opinion widely shared among other crypto communities.
Institutional investors
Institutional investors rejected Bitcoin and cryptocurrencies for much of their development years. The prevailing uncertainty, high level of risk, and regulatory pressure were off-putting for these entities. However, they started warming up to Bitcoin and increasing their exposure to it with customer demand.
With institutional interest in Bitcoin and other cryptocurrencies surging, these entities have become among the most important players on the crypto scene. Asset managers, hedge funds, and even family offices are starting to acknowledge the potential of digital money as an asset class. Possible uses of Bitcoin include being a vehicle for digital contracts, a medium of exchange, or a store of wealth, all of which appeal to numerous institutions.
After a dark period in the crypto sphere that pushed institutional investors away from digital coins, they seem to be back on track and showing maturing interest. Many companies look at Bitcoin from new angles and perspectives beyond the frenzy and euphoria of its golden days. Institutional entities may level up their game as acceptance grows and the market recovers. Numerous major financial institutions, like JPMorgan and Goldman Sachs, have planned to provide cryptocurrency services and products to their clientele. Additionally, financial advisors, crypto hedge funds, and high-net-worth individuals are among the most active investors in Bitcoin.
Private and public companies
More public and private companies worldwide introduce cryptocurrencies in their operations, and Bitcoin remains a favorite in this regard. Their purpose ranges from transactional to operational, meaning that they either provide services centered around Bitcoin or accept it as a form of payment in change for their offerings.
Bitcoin is considered a good alternative to cash as it is regarded as a deflationary asset, compared to money that loses value in time. The fact that a hard cap of 21 million BTC is appealing to companies that plan to hold the cryptocurrency for extended periods or convert it to money when prices soar. In this respect, the taxation system considerably implies companies’ approach to managing their digital wealth.
Large miners
Some Bitcoin holders stand on a fortune after investing in cryptocurrency, looking to make more significant gains in the future. They succeeded in bringing revenue through their investment strategies and are now waiting for the next bull run, as cryptocurrencies have witnessed a handful of healthy cycles. However, tech-savvy supporters boosted their profits by investing in mining rigs, amassing impressive holdings through them. Cryptocurrency miners are a smaller category of Bitcoin holders than others, as receiving cryptocurrency implicates much computational power and work instead of placing orders or receiving it as payment.
Governments
Governments also own vast amounts of Bitcoin, as well as other cryptocurrencies in less significant quantities. They may obtain it by seizing it from citizens due to criminal activity or purchasing it as a reserve asset. The Us and Bulgarian are among the governments with the largest catches of Bitcoin. Still, they’re secretive about the reasons and objectives behind their investments, meaning that their intention is undisclosed.
Now that you’re familiar with the most prominent Bitcoin possessors and the motivators behind their investment decisions, you can make a more informed decision regarding your next investment.
