Everything you need to know about Bitcoin Vladimir Club
Of CNBCTV18.com IST (published)
Mini
The Vladimir Club is the unofficial name given to the collective of bitcoin holders with at least 1 percent of the total number of bitcoins. The total supply of Bitcoin is 21 million, so for someone to be a part of the Vladimir club, they must have at least 2100 BTC.
As long as civilization has existed, there has been a need for exclusivity. This is why social bodies such as the Gentlemen’s Club were established in the 18th century. It is also why lists such as “Forbes Richest” or “Fortune 500” exist today. People are driven to be part of exclusive clubs, while others wonder in awe of the individuals on such lists.
Bitcoin is the same. Ever since the cryptocurrency gained monetary value a few years ago, people have wanted to know who owns how much BTC and what their net worth might be. This led to the creation of Bitcoin’s exclusive list – The Vladimir Club.
What is Bitcoin Vladimir Club?
The Vladimir Club is the unofficial name given to the collective of bitcoin holders with at least 1 percent of the total number of bitcoins. The total supply of Bitcoin is 21 million, so for someone to be a part of the Vladimir club, they must have at least 2100 BTC.
When the term was coined, the price of bitcoin was around $11, so the members of the club had around $24,000 worth of BTC. This figure is today closer to 60 million dollars. Therefore, if it was difficult to get into the Vladimir club back then, it seems quite impossible today.
Origins of Bitcoin Vladimir Club
Contrary to what some might think, the club’s name has nothing to do with Russian President Vladimir Putin. It’s just a coincidence and nothing for the conspiracy theorists to ponder.
The term originates from BitcoinTalk, a public forum founded by Satoshi Nakamoto. In 2012, a user named Vladimir encouraged people on the forum to hold at least 2100 BTC. He tried to tell people what a good investment Bitcoin was and how owning 1 ten-thousandth of the total supply was a good strategy. Somehow the name stuck, and that’s how we have the Vladimir Club today.
The numbers game
In a utopian world, there would be exactly 10,000 members of the Vladimir Club. However, in the real world this can never happen for several reasons.
First, the total number of bitcoins has not been mined yet. The current circulation of Bitcoin is somewhere around 18.5 million, and due to the constant halving in the mining process, the circulation limit will only be reached somewhere in the year 2140.
Second, not all bitcoins in circulation are available. Due to lost wallets and wrong transactions, some BTC is permanently lost. As in the case of James Howells, who lost his hard drive containing around 8,000 bitcoins, which may never be found again.
Third, the real bitcoin whales who own more than 2100 BTC may not have them all in a single wallet – either for security reasons or to stay under the radar.
Also, the difference between bitcoin whales and normal investors is quite large. Some whales and institutes own huge amounts of BTC. Take MicroStrategy, for example; the software firm owns nearly 130,000 BTC. Therefore, it is estimated that the Vladimir Club consists of only 500 to 600 large whales.
Conclusion
Ironically, the Vladimir Club is no longer exclusive to Bitcoin anymore. Many cryptocurrencies with limited supplies have their own version of Vladimir Club, such as the Binance Vladimir Club, which requires 20,000 BNB due to its maximum supply of 200 million BNB.
Also, clubs like the Bitcoin Vladimir Club are not the best for the future of Bitcoin or cryptocurrencies in general. It represents the gap between the haves and the have-nots in the world today. Moreover, it can also lead to the concentration of BTC in the hands of a few. Fortunately, the club is small and can stay that way.
