From Anonymity to Affluence: The Daily Transformation of 1,500 Wallets into Millionaire Status

2024-06-12, 06:12

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## [TL; DR]
In March 2024 when the BTC price was around $63,000 <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> was generating 1,500 crypto millionaires per day.

New crypto millionaires often acquire essential assets such as modern houses and smart vehicles to improve their lives
Crypto millionaires should diversify their cryptocurrency portfolios to reduce losses during periods of high market volatility.
## Introduction 
Cryptocurrencies have brought many economic benefits to people around the world due to their decentralized nature and inclusivity. As we speak, many people have risen from poverty backgrounds to become millionaires within short periods due to  price volatility of such digital assets. However, crypto investors should have ample knowledge of how to navigate the digital space. Today, we discuss the rise of a new crop of investors that have become crypto millionaires.
## Bitcoin Boom: The Surge in Millionaires and Its Ripple Effects on Individuals and the Crypto Market
The rise in <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin price</a> is generating many new crypto millionaires per day. However, the number of new millionaires that come onboard per day depends on the current bitcoin price. For example, when the BTC price was about $63,000 it was generating around 1,500 bitcoin millionaires per day. Such a development is showing a shift in the digital finance sector. The following graph indicates daily increases in the number of bitcoin millionaires in 2024 as compared to previous years.
![](https://gimg2.gateimg.com/image/article/17181724002.jpeg)
Bitcoin Wallets Reaching $1M and $10M – [Kaiko](https://research-backoffice-prod.kaiko.com/wp-content/uploads/sites/2/2024/03/unnamed-2024-03-11t151145.770.webp "Kaiko")

The first thing to note on <a href="/price/the-graph-grt" target="_blank" class="blog_inner_link">The Graph</a> is that the bitcoin price has surged significantly in 2024, reaching a new all-time high price of $73,737 on 14 March. Generally though, the daily number of new BTC millionaires remains lower than those of 2021 and 2022. Notably, the number of new crypto millionaires in 2023 was relatively very low.

Kaiko Research gave the reasons for the current situation. [It stated](https://research.kaiko.com/insights/bitcoin-cant-stop-climbing "It stated"), “This could be due to a few things: (1) New capital has yet to arrive in full force. (2) Large whales are taking profit as BTC hits new highs. (3) Whales are storing their holdings with custodians, rather than personal wallets.”

Read also: [What You Need To Know Before Investing In BTC](https://www.gate.io/hot_news/detail/131/buying-bitcoin-during-the-crash "What You Need To Know Before Investing In BTC")

It is also vital to emphasize that these crypto millionaires are digital wallets, represented by their addresses, which hold bitcoin worth over USD $1 million. Since the public ledger allows anyone to view the quantities of digital assets each and every wallet holds, it is easy to identify <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin crypto</a> whales. Nonetheless, it is important to realize that the public can only identify bitcoin whales in terms of digital addresses not by name. Thus, it becomes difficult to tell if the new crypto millionaires are individuals or organizations.

The greatest driver for the recent bitcoin rally that started in January was the approval and the launch of spot BTC ETFs in the United States. So far, the bitcoin price has surged by over 70% since the beginning of the year and it still maintains its bullishness. However, the rate of bitcoin millionaire creation is lower than that of 2021.

During the 2021 crypto bull run more than 4,000 wallets were being added to the crypto millionaire status on a daily basis. This year, the peak of that trend was on 1 March when 1,691 wallets became bitcoin millionaires for the first time.

This year’s daily growth of millionaire wallets is lower than the 2021’s for several reasons. Following the launch of spot BTC ETFs in January in the U.S there was gradual, yet consistent inflow of capital into the sector. In contrast, in 2021 the hype of the Bull Run led to huge capital inflows.

Commenting on this, [Kaiko Research, a digital intelligence firm, said](https://research.kaiko.com/insights/bitcoin-cant-stop-climbing "Kaiko Research, a digital intelligence firm, said"), “In 2021, there was a huge influx in capital as all manner of bull sought to benefit from the crypto hype. This time around, whales could be taking a more cautious approach, waiting to see if the gains have legs before investing.”

Read also: [Indicators for Crypto Price Prediction Analysis](https://www.gate.io/learn/articles/15-best-indicators-for-crypto-price-prediction-analysis-in-2024/2603 "Indicators for Crypto Price Prediction Analysis")
## How Crypto Wealth Transformed the Lives of Erik Finman, Chris Dunn and Others
The psychological impact of wealth is evident among many bitcoin millionaires as the changes of Erik Finman and Chris Dunn’s lives have shown. Therefore, new crypto whales should understand the importance of navigating social dynamics as a millionaire in a well-calculated manner. Erik Finman who lives in Idaho is an example of a crypto investor with a new crypto wealth lifestyle. Finman started investing in cryptocurrencies while he was still a teenager. By the time he reached 18 years he was already a crypto millionaire.

It all started in 2011 while he was still 12 years old when he used $1,000 which his grandmother gave him to fund his education to buy 100 BTC.At that time the price of bitcoin was $10. When Finman became a millionaire the way he used to view things changed.

Based on his [interview with Cointelegraph](https://cointelegraph.com/news/how-1500-new-bitcoin-millionaires-per-day-deal-with-getting-rich "interview with Cointelegraph") “reaching a million was incredibly exciting.” He said that “things that seemed unattainable before suddenly became realistic possibilities” because with wealth many doors opened for him. For example, Finman was able to purchase a brand-new Audi R8 with a custom license plate. What was more interesting was that he was not an outstanding student at school. As a result, he dropped out of school when he was only 15 years old.

Read also: [GCR: The most famous crypto trader](https://www.gate.io/learn/articles/gcr-the-most-famous-crypto-trader/2640 "GCR: The most famous crypto trader")

Chris Dunn, a Bitcoin educator and crypto investor, was another person whose crypto millionaire status changed his lifestyle remarkably. Dunn, like Finman, was able to purchase an Audi R8 and his dream house. However, during his early days of trading cryptocurrencies some of his friends and relatives used to laugh at him saying that he was wasting his time.

Another successful crypto investor was “Gonzo,” a self-made crypto millionaire, who requested to remain anonymous.  Despite having money, this crypto millionaire,, chose to live a simple life as he does not wish to catch the attention of many people. 
## The Psychological Dimension - Mental and Emotional Terrain of Sudden Crypto Wealth
When someone instantly becomes a millionaire there is a need to change the way he/she views things. For example, one should know how to handle various relationships. This is because they may encounter challenges when using their newly found financial status to maintain their relationships with various significant others such as friends, close relatives and romantic partners. As an example, some friends and relatives may become envious of their crypto millionaire’s success resulting in strained relationships.

The new millionaires should also strategize how they will handle the expectations of various relatives and friends. The reason is that some of them may seek financial assistance which may spark conflicts. Worse still, some strangers may approach them with various investment opportunities. That is why Elizabeth Sterbenz, a mental health professional, said that one should set proper boundaries around his/her personal wealth.

Elizabeth Sterbenz [told Cointelegraph](https://cointelegraph.com/news/how-1500-new-bitcoin-millionaires-per-day-deal-with-getting-rich "told Cointelegraph"): “Once you have a better understanding of what your boundaries are, you will be prepared to navigate other people’s behavior. You can’t control what other people do, but you can choose how you respond.” To illustrate, Gonzo said that he never became too generous to people including his close relatives.

## The Shift in Money Mindset and Strategies among New Crypto Millionaires
When a crypto investor has amassed so much money he/she should preserve or expand his/her wealth. To sustain or increase one’s wealth an individual should invest intelligently. One of the investment strategies for crypto millionaires is to invest in projects where they earn <a href="/price/compound-comp" target="_blank" class="blog_inner_link">Compound</a> interest. For example, Finman has said that his current focus is to diversify his investment rather than simply earning and saving.

One way to manage sudden crypto riches is to reduce as many expenses as possible. In addition, they should not spend money pursuing a lavish lifestyle or give money indiscriminately to friends and relatives. Finman, mentioned [earlier on said](https://cointelegraph.com/news/how-1500-new-bitcoin-millionaires-per-day-deal-with-getting-rich "earlier on said"), “Definitely, I am more willing to give to causes I care about and help out friends and family. I’m also more careful about avoiding frivolous spending.”

He added, ““Seeing how much wealth can grow with the right investments made me think about money differently. When I was poor, I spent my time looking and feeling rich. Now, I focus on my wealth-building journey as a game, with money as the token.” Thus, his recently acquired millionaire status has made him focus on new businesses and expanding his wealth.
## Challenges of Crypto Affluence: Security, Taxes, and Market Volatility Facing Millionaires
Crypto millionaires, like other budding entrepreneurs, face different challenges related to preserving their wealth. Thus, one of their key objectives is to protect their digital assets from bad actors such as hackers. Once crypto assets are stolen, they are impossible to recover. Therefore, they should ensure that their wallets are secure.

The new crypto millionaires should also have strategies to optimize taxes since the law requires them to do so. Misunderstanding how the country’s taxation system works or ignoring one’s tax liability may lead to serious legal and financial consequences. One way to deal with such a challenge is to hire a professional tax consultant to assist you in this regard.

One of the other security concerns for crypto assets regards cryptocurrency market volatility. The value of a cryptocurrency can either fall or rise within a short period such as 24 hours. Finman said that “seeing your net worth fluctuate so dramatically messes with your head.” Therefore, some crypto millionaires diversify their digital assets at any time to hedge against price volatility.
## Psychological Toll and Mental Health Strategies Amidst Market Volatility
Both Gonzo and Finman admitted that a crypto investor with much wealth in cryptocurrencies should have strong mental power to overcome a “psychological rollercoaster” that one may experience at times. One may experience emotional trauma when the price of crypto assets nosedives. Gonzo commented, “In crypto, you may win the lottery and lose the ticket on the way to the counter.”

On the other hand, Finman advised crypto millionaires to have means to de-stress during periods of high cryptocurrency market volatility. He said, “Even doing something like standing up and moving your arms or legs around can help reground yourself so that you can look at the numbers and market action with a realistic perspective and choose decisions from a place of clarity instead of reaction.”

## Strategic Advice for Crypto Millionaires on Preserving and Enhancing Their Fortune
Some analysts advise [crypto investors](https://www.gate.io/learn/course/guide-to-investing-in-new-cryptocurrencies "crypto investors") to diversify their portfolios. Dunn, cited earlier, advised investors to set “self-imposed limits” on the funds they invest in different assets to preserve their wealth. He believes one should invest in different cryptocurrencies rather than [having one crypto asset like bitcoin](https://www.gate.io/learn/articles/how-to-make-money-with-crypto-a-comprehensive-guide-2024/2932 "having one crypto asset like bitcoin").

He said, “I don’t want to have 80% of my net worth vanish during bear markets. The key is staying diligent and making smart moves,” because “wealth can be easily lost in crypto.”  Emphasizing the need to make smart investments, Dunn said that he had “seen a lot of people make quick money and lose it because of ego, greed or recklessness.”

On the other hand, Sterbenz emphasized the need to assess market conditions diligently before making an investment. Similarly, he advised traders to avoid being greedy when trading or becoming addicted to the process. For example, one should avoid spending more time trading than he/she has planned. Thus, investment strategies for crypto millionaires should be strategic and dynamic.

Read also: [Strategies for Navigating a Crypto Bull Market](https://www.gate.io/learn/articles/strategies-for-navigating-a-crypto-bull-market/3031 "Strategies for Navigating a Crypto Bull Market")

## Seeking Happiness and Fulfilment in the Wake of Crypto Success
Many people believe that having a lot of money leads to happiness. Finman disagrees with that belief, saying that “money doesn’t equate to happiness or fulfillment.”

Worse still, Sterbenz explained the sad reality of some millionaires’ lives. She said “There is an epidemic of loneliness right now, and it’s not unique to millionaires.” Once one becomes too lonely due to much focus on the pursuit of wealth, life becomes meaningless and unfulfilling.

Regarding this, Sterbenz said, “If someone has decided that being a millionaire is the goal that will cure loneliness, then there is not enough money to reach that goal because the bar will keep moving.” According to some psychologists the best way to attain a fulfilling and happy life is to have some reasonable values.

Also, Sterbenz said that the new crypto millionaires should avoid making dramatic changes to their lifestyles and plans. Instead, “they should examine their values and the meaning they make of their world so that they can make choices with their money and finances that reflect the things that are important to them.” By doing this they attain happiness beyond financial success.
Conclusion

A research by Kaiko concluded that as of March bitcoin was generating 1,500 crypto millionaires per day. If the same trend continues it means that more than 1,500 crypto millionaires will emerge per day when the bitcoin price keeps rising. In the meantime, the new crypto millionaires should invest smartly to sustain their bitcoin wealth.
## FAQs about bitcoin?
### How many bitcoin millionaires are there?
The current online data shows that there are around 40,500 bitcoin millionaires. However, that number varies on a daily basis as new Bitcoin millionaires may be added every day.
### What is a bitcoin millionaire?
A bitcoin millionaire is a digital wallet that holds bitcoin with a value of at least $1 million. Apart from bitcoin millionaires there are other investors who hold large quantities of other cryptocurrencies.
### Why can only 21 million bitcoin exist?
The number of bitcoin that can ever exist was determined by the creator of the blockchain Satoshi Nakamoto. The reason for such a small quantity is to maintain the scarcity of the cryptocurrency which helps to determine its value.
### How much bitcoin does Elon Musk own?
It is believed that Elon Musk owns 25 bitcoin. However, Tesla and SpaceX, the two companies which Elon Musk owns hold a collective amount of about 19,800 bitcoins.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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