Some people became rich overnight in the cryptocurrency circle, while others lost their positions overnight. The myth of various bigwigs' wealth freedom has become a cliché. Today we will analyze how the people who originally held Bitcoin are doing now.
The current situations of the original Bitcoin holders vary, depending on what they did with their Bitcoins.
1. Early investors/miners: Some early Bitcoin holders obtained large amounts of Bitcoin through mining or early purchases. As Bitcoin increases in value over time, these early holders will see a significant increase in their wealth if they still hold on to their Bitcoins. For example, Li Xiaolai was once one of the largest Bitcoin holders in China. It was reported that he sold a large amount of Bitcoin when the price of Bitcoin was high and cashed out a huge amount of money.
2. Long-term holders: Some Bitcoin holders choose to hold their Bitcoin for the long term and do not sell it even during periods of Bitcoin price volatility. These people are often referred to as “HODLers”, a term derived from a misspelling of the word “hold”, meaning to hold on even in the face of market volatility. The strategy of these long-term holders may be based on their belief in the long-term prospects of Bitcoin.
3. Short-term traders: Others may have bought and sold during periods of high volatility in Bitcoin prices, attempting to profit from market fluctuations. This trading strategy is riskier, but can also be profitable if done correctly.
4. Lost or forgotten: There are also some early Bitcoin holders who may have lost their Bitcoins for various reasons, such as losing the private key of the wallet where the Bitcoins were stored, or failing to recover the Bitcoins stored in it after a hard drive failure.
5. Donation or consumption: Some holders may choose to use Bitcoin to make donations or purchase goods and services, especially when Bitcoin is accepted by more and more merchants.
6. Institutional investors: As Bitcoin gradually becomes mainstream, some early large institutional investors such as the Winklevoss brothers, Barry Silbert and others not only hold Bitcoin but also build their own Bitcoin empire by establishing trading platforms and funds.
It is worth noting that the Bitcoin market is full of uncertainty and the price fluctuates greatly. Even for early holders, their current situation depends on how they manage their assets and changes in market conditions. Not all early holders have become billionaires, and some may not have profited from it for various reasons.
