Imagine that you want to make a $1,000 financial transfer. Your bank would charge you the 0,35% of the amount transferred plus an entry fee that usually varies from 3 to 8 dollars. That means that you would transfer $1,000 and pay from $6.5 to $11.5. Crazy, isn’t it? And I’m only talking about national transfers …
Now visualize a parallel World where you can immediately transfer $1.1billion (it is a parallel world so yes, you can be rich) at a price of $3.58. I guess we all would love to live in this parallel World if we could choose. So I have good news for you! This parallel world already exists, it is called Bitcoin Planet and the people that move this huge quantity of money are the so called “Bitcoin whales.”
“Bitcoin Whales” are the biggest Bitcoin investors on the market. Their identity is unknown and anonymous as they operate under the Blockchain system, but believe me when I say their actions cannot go unnoticed by the whole crypto market.
For a Bitcoin user or Bitcoin address to be considered a “Bitcoin Whale” has to have at least 1000 BTC, which is equivalent to 13 million dollars. Can you imagine being one of these whales? Currently, the number of Bitcoin whales is over 2200, higher than any level seen before, and this is partly due to the collapse of the price of Bitcoin in March 2020 as a consequence of the uncertainty generated by Covid-19. On 16th March, the price of Bitcoin fell to $4612.53 and many powerful users of this platform took advantage of this low price to buy Bitcoins that made them finally reach the requirements needed to become Bitcoin Whales. Without any doubt, a great strategy considering the bullish trend Bitcoins are experimenting right now (Bitcoin price is currently around $13500).
At this point you may be wondering how the existence of “Bitcoin Whales” affects you. Well, Bitcoin Whales are a very good economic indicators. According to the Bitcoin Chart, 42% of the total Bitcoin supply is controlled by these giant investors. This means that 2200 users or entities control almost half of the total bitcoin stocks. Therefore, the actions of these huge traders or investors can be decisive and what they do can change Bitcoin and related altcoins prices and alter the crypto market course in mere seconds. Hence, the enormous importance for other traders to observe Bitcoins Whales movements and to act accordingly, so success is a little bit more assured.
Whales are usually long-term investors who don’t usually move their money around for years even if the market changes. Typically, they are not victims of the widespread fear that takes over other investors when major changes occur. One example of this is how Whales managed the Covid-19 crisis. They were not affected but the uncertainty, in fact they benefited from the situation and bought more Bitcoins.
At this moment, I don’t think you have any doubt why Bitcoin Whales prefer crypto currency and Bitcoin platforms rather than traditional banking. Apart from the money that the bank does not take away as fees for transactions (imagine how much money the bank would take away from a $1.1billion transfer) there are other advantages of using Bitcoin, as it is a system that uses blockchain technology and therefore users feel completely safe and also preserve their privacy. In fact, the identity of many Bitcoin whales is unknown.
One of these Whales is Satoshi Nakamoto, the creator of Bitcoin, who meets the requirements to be a Whale and hides himself under a pseudonym. It is also speculated that he has never moved part of his capital. On the other hand there are some Bitcoin Whales that have decided to reveal their identity. This is the case of Michael Saylor who has revealed that owns 17,732 BTC, but this is a personal decision that you don’t have to make, you can hide your identity forever if you want to.
And yes, until now I have been talking about rich people but don’t worry if you do not own $13 million. It is okay, you don’t have to be a Whale to benefit from the use of crypto.
Crypto currency is the future, especially now that more and more corporations, banks and companies are beginning to accept payment in crypto and are standardising its use. There is a wide variety of crypt coins with very different prices that you can get great benefits, but we can leave that for further post. The only thing that is true is that if you never invest you won’t ever be a Bitcoin whale. I know it may sound crazy but you can always start by investing in altcoins. Who knows if in 5 years I would be writing a post about your achievements!
I hope this brief explanation has made it clearer to you what these famous Bitcoin Whales that everyone is talking about on Twitter are. Let me know your thoughts! I read you!!!
