Shortly after El Salvador making BTC its legal tender, Bitcoin saw a nasty dip that pulled the entire market down. Before the dip, BTC was trading at $52,000. The crash brought a $10,000 in mere moments. Since then, BTC has slowly recovered some losses and is currently sitting at $45,289. This is where Crypto Whales steps in.
Who are Crypto Whales?
Just like the normal global financial world, the crypto industry is also riddled with wealthy entities trying to control the markets. These entities are called ‘Whales’ in crypto. BTC is to the crypto-verse what dollar is to the traditional finance of the industry. Therefore, whoever controls the most BTC controls the market.
Some of the known Whales in crypto include Michael Saylor, the Founder, and CEO of MicroStrategy, Elon Musk, Founder and CEO of Tesla Inc., Vitalik Buterin, Founder of Ethereum, Camron and Tyler Winklevoss, founders of Gemini Exchange, among many others.
Can the BTC Whales Control the Market?
No. The mysterious creator of Bitcoin, Satoshi Nakamoto, programmed some features in Bitcoin to prevent exactly this. The feature comes out in Bitcoin’s mining difficulty. As Bitcoin becomes more popular, it becomes harder and harder to acquire.
The difficulty makes BTC more scarce which in turn makes it even more expensive, effectively keeping it out of the control of the wealthy manipulators.
For example, today, September 13, 2021, MicroStrategy bought 5050 BTC for $24 million. Presently, the company owns a total of 114,000 BTC. Tesla, the billion-dollar car manufacturing company only owns about 45,000 BTC.
Given that there are only 18 million BTCs in circulation, this distribution among whales is acceptable.
Is this Mini-Accumulation Good or Bad for the Market?
This accumulation is good for the market. The whales are not the only ones buying the dip. However, they are the only ones being monitored. In most cases, BTC whales are entities such as governments and billions of dollar companies. For example, El Salvador bought up to 550 BTC after it dipped. MicroStrategy bought 5050 more Bitcoins today (September 13, 2021).
The more such types of whales accumulate, the more BTC gets validated and legitimized. Because of such whale action, Ukraine is looking at legalizing BTC as money.
Whale entities promote BTC adoption.
Do We Want Whales in the Market? Verdict.
By all means, we want even more whales to enter the market, and they are coming. Projects like Unibright, which just partnered with the Europeans Investment Fund, and Chainlink which has deep ties with the World Economic Forum (WEF), can be entry points of huge whales into the crypto markets. Crypto assets help each other and in one way or another, a win for one is a win for all.
The current crypto market cap is tiny. Sitting at $2.3 trillion, the market cap is less than 0.1% of the entire global finance, which is pegged on the dollar. Crypto still has a long way to go.