As revealed by the creator of Bitcoin's stock-to-flow model, 'Plan B' in a recent tweet, there are more than 200,000 people with an ultra high net worth (UHNWI) in the world. The net worth of these people is not less than $ 30 million. Their investment, therefore, would be instrumental if they decided to enter the cryptocurrency market.
According to his tweetThis is not a new topic being discussed on the platform, and if these very high net worth people buy bitcoin they will buy more than 2 BTC. So the question is what would happen if only 10% of these people invest their money in BTC.
A community member stated that in the next recession, investors will seek safe havens to store their wealth, as banks and outside agents cannot be trusted. The pandemic has threatened economies and has led to increased funding from governments, as well as a decrease in the flow of income for businesses.
The expected slowdown in these effects could push people with very high net worth to look for other, more reliable ways to put their wealth to protect it from inflation. One of these safe ways is Bitcoin.
Plan B he claimed The reason why this has not happened so far, even after the price increase in 2017, is that major media outlets like Bloomberg, WSJ, and Ft are still spreading false narratives about BTC. According to his narrative, BTC is for criminals and governments will ban it. This anti-bitcoin narrative has been effective as many of these UHNWIs and more influential people have yet to take a look at BTC.
Effect of UHNWI's investment in BTC
If only 10% of the world's most valuable people invested in BTC, the effects would be felt not only in BTC but in many other cryptocurrencies as well. The action would spark speculative trading, as well as acting as a marketing tool for BTC whereby many advocates, enthusiasts, and critics of these millionaires would rush to join BTC.
The FOMO created by such a move would cause the price of BTC to rise dramatically, probably tripling its high historical price of $ 20k experienced in 2017, as 10% of its accumulated portfolio would be capped on average at $ 2.5 trillion.
In addition, it could lead to a change of opinion of some of the anti-bitcoin groups, giving way to detractors who are also interested in BTC. A reduction in the number of these anti-bitcoin campaigns can positively affect the popularity of bitcoin, thereby boosting its adoption.