Yesterday, my son was watching a video documentary on the blue whales and therefore he gave me the idea to speak about the WHALES. It won’t be a long article as we are Saturday and we have plenty of work to build the new terrace.
First, do you know what is a WHALE in the Crypto World?
Basically it is individual or institutions with a large capital and which can move the market at will. So it is basically a metaphor saying that the Bitcoin Whale choose its own way or direction on the market and nobody (the small fishes) can influence its choice.
The term is not only used on the BITCOIN market. It is also well present on the altcoin market and even on the traditional equities market.
How many BITCOIN must have a WHALE? 1,000 BTC is already huge (equivalent to 9,500,000$). As Per the below table, you can see that more that 2,000 address contains at least 1,000 BTC.
2,000! Yes but remember that today with just 105 BTC you are a dollar millionaire in BITCOIN (and therefore there is around 16,000 millionaires on BITCOIN). It is probably not 16,000 different persons as one entity can have multiple wallets for sure.
How do you become a whale?
- As an early adopter, you have mined BITCOIN in the early days
- As an early adopter, you have bought BITCOIN in the early days.
- As an investor, you buy REGULARLY BITCOIN with massive fiat money. (The world regularly is very important, because if you buy massive amount in one go you will have a massive price increase and you will be detected as a whale).
- As a mining coloration, you have been mining BITCOIN for years and you keep a part of your rewards.
- With a good intuition, you may have bought an altcoin at a very low price and sell it for BITCOIN when it increase.
All these options allow to slowly enter the market without being DETECTED. In addition if those people works with multiple wallets it is even more difficult to know their exact holdings.
In January 2018, FEATHERCOIN was over 4000 sats meaning that with 2,625,000 FTC sell at that price you would have 105 BTC (and therefore become a dollar millionaire; of course in between the BITCOIN price will be much higher so may be that just 500,000 FEATHERCOIN would be enough!).
Today 500,000 FTC cost around $5000. The dream of each FEATHERCOIN hodler is of course that the price would come back to this level… So yes an altcoin whale could become a BITCOIN whale in the long run!
I leave you meditate on that!