Billionaires may want to buy up 25% of all Bitcoin, but “Hodlers” will never allow it!

When a billionaire states he/she wants to buy 25% of all Bitcoin in existence, people tend to listen.

But how do the super rich invest their wealth so that it can increase in value? They invest it wisely in assets like land and cars and of course art. Well it is at one such art gallery, in London’s upmarket Mayfair area, that the wealthy are going to re-invest their earnings, but not just in art.

Another emerging investment interest of the rich is, of course, Bitcoin, so it is at this very same art gallery The Dadiani Syndicate, run by Art dealer Eleesa Dadiani, that they are turning lately as she branches out for her clients into other collectibles like crypto. With the current bull market appearing, Bitcoin has definitely peaked the interest of some super-wealthy, who have cash and are looking for places to invest.

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Being a dealer in art Ms Dadiani has found and matched buyers and sellers in her art industry before, so branching out to Bitcoin is nothing new to her. In fact he art gallery already has a crypto platform called Maecenas Fine Art where in today’s tokenized world of the blockchain, everything can be sold in shares, even works of art.

For example the gallery made headlines when they sold shares in an Andy Warhol art piece in exchange for cryptocurrency via the Ethereum blockchain. When even an art piece can become tokenized, then investors can buy a fraction of the art piece, just as one would buy a portion of any asset divided up into multiple shares.

It’s like buying shares in a painting.

Altogether 49% of the 1980’s Warhol art piece was sold to 100 investors. I presume the original owner kept the other 51%. And there you have it - now you too can own a portion of a Picasso or a Van Gogh, by the sounds of it, all recorded on the blockchain. So in dealing with tokenized assets on the blockchain, the art dealer was presumably approached by some of her wealthy art-collector clients who also want to collect some Bitcoin.

Generally it’s near impossible to buy huge amounts of Bitcoin all at once on any exchange anywhere in the world without either affecting the price, or experiencing what is known as “slippage” in your attempt to make your purchase. This is when you place an order for Bitcoin at a certain price but your order is so big that you end up having to buy small amounts of Bitcion at a time from numerous different sellers to make up your one large order.

During this process the price fluctuates or more likely just goes up since you are buying so much, and then you end up only filling some of your buy order at your requested price but have to pay more for the rest of it.

And for big investors even a small percentage of slippage in their purchase price will amount to thousands of dollars. So what they do is go to what’s known as Over the Counter exchanges (OTC) to buy directly from other Bitcoin sellers. So the Dadiani Syndicate art gallery is now acting as an OTC exchange and broker for her clients. I guess it was inevitable. You will make much better return on your investment in Bitcoin than in art at this point in history.

But that’s not the most interesting part of the story. It’s not enough that now you can buy a digital share in an art piece, or find OTC trading at an art gallery, but it turns out that the potential investor at the gallery is looking to buy 25% of all the current circulating supply of Bitcoin in the world at present. Now that is a tall order, and sounds a bit far fetched if you analyse it, but this is the kind of money available to the elites, or so they might like you to think.

Any publicity is good publicity and this art gallery broker might just be fishing for clients or free advertising.

If we look at the request honestly and literally, then with the current supply of Bitcoin around 17,7 million mined out of the 21 million total limit ever to be available, and if we remember that around 4 million Bitcoin has been lost forever on old hard drives, then that leaves us with a total of around 14 million, out of which 25% would be 3.5 million. If someone wants to buy 3.5 million Bitcoin today, s/he is obviously willing to spend $29 billion at current prices.

This is just a ballpark figure but you get the idea.

Such figures may seem extreme, but I can believe there may be someone out there who has that much spare cash to invest. The problem is they will never be able to do it. Not only will regular exchanges be unable to supply that much volume to even fill the order, but it will shoot the price sky high overnight and cost you more to buy up the attempted investment.

Secondly, there are so many Bitcoin “hodlers” who are holding on to their Bitcoin and are unwilling to sell at these prices, knowing the bull run is on the way and they need to wait a year or two or three at least to see serious profits themselves. Those Bitcoin are not for sale. According to Bitcoin expert Mati Greenspan of eToro, there are probably only around 5 million Bitcoin actually available in circulation for sale on the global market at present.

Even if these are legitimate buyers with large accounts at reputable banks under full KYC, still they will not be able to get their hands on 25% of the world’s Bitcoin supply. So the story is a bit of a hype, something like the “lambo” themes that permeated the earlier years of crypto but seem to have died out of late.

The Dadiani Syndicate and art gallery/crypto broker has so far only executed four sales of OTC Bitcoin to large customers, but as the saying goes, when you’re dealing in diamonds, you may not get very many but the ones you do get will be very valuable.

They may only have executed four trades, but that could account for millions of dollars and large commissions for the brokerage.

It may even be large whales like these who push the price up sometimes with their big buy orders. Just last month there was a simultaneous buy placed on three exchanges for thousands of Bitcoin on each exchange, which sent the price spiking globally. So if you want to invest that extra billion you have lying around, then the Dadiani Syndicate is the gallery for “maximising your digital holdings” as they advertise on their website. In the long run, it is peer-to-peer networks and OTC exchanges like this that will benefit the market overall.

They are also private and untraceable.

Remember that with only 17 million Bitcoin ever to be in existence (if 4 million are lost), they are going to become scarcer with time and, greater demand will push the price to new highs never seen before. There are more than 17 million wealthy people who might want a Bitcoin each, and so the scramble will make even a fraction of one into quite a bit of treasure. And that’s why Satoshi Nakamoto designed each Bitcoin with 8 decimal places to its value.

He knew that even those fractions will be worth their weight in virtual gold.

So hang onto your bits if you have them, or get yourself some while you can because the whales are around looking to scoop up as much as they can get their hands on.