[2018-01-03] Bitcoin Billionaires Hiding in Plain Sight

[cybersofts]

Bitcoin Billionaires Hiding in Plain Sight



Bitcoin’s anonymous yet transparent nature makes for some interesting reading when trawling through the easily accessible information on the top wallets out there. While these top 10 wallets, do not have names attached to them, some are easy to figure out.

The Winklevoss twins made history in early December by becoming the first widely accepted Bitcoin Billionaires. It was estimated at the time of print that the twins held 91,666 which equated to $1.063 bln.

However, these high profile twins are one of the few that are solidly in the spotlight that it is easy to speculate on their wealth. It is believed that there could be far more Bitcoin Billionaires out there, lurking in the shadow.


Distributed funds on a distributed ledger

If it was the norm to hold all our funds in one wallet, it would be easy to put together a rich list and speculate who belongs where. However, not only does Bitcoin’s anonymity but its practices of good coin storage, also make things difficult.

The normal procedure, especially for those whose funds are closer to billions than hundreds like most mere mortals, is to split the wealth over a number of wallets and other storage methods.

It is a lesson that everyone should heed when it comes to keeping one’s fortune on the wild west that is Bitcoin exchanges.


As many as 200 Billionaires

A representative for BitInfoCharts, who wished to remain anonymous because of security concerns, told MSN in an email that, given Bitcoin’s current overall market capitalization and that most people hold Bitcoin at multiple addresses, there may actually be as many as 200 Bitcoin billionaires, and possibly no fewer than 35.

The rep noted that it’s likely most of these addresses are owned by exchanges or hedge funds.

A billionaire could keep on being created without much work needing to be done by some of the more than 100 addresses that already have over $100 mln in Bitcoin currently. The growth of Bitcoin has turned many people into millionaires and is doing the same with those people taking the step up to billionaires.


Better to hide in plain sight?

If there are so many of these billionaires out there making a massive profit from some savvy early investing or clever trading perhaps, why are they so hidden and secretive?

The king of secrecy and anonymity is, of course, Bitcoin's creator Satoshi Nakamoto who has been estimated to be sitting on one mln Bitcoins.

Much has been made over Nakamoto's reasoning for remaining hidden and seemingly out of all Bitcoin activity, but there is also speculation mounting over his fortune which could be rivaling some of the richest men in the world.


The circling regulatory wolves

Of course, one of the biggest reason for remaining hidden when you are sitting on enough money to buy an island is the tax and regulatory implications that could come into play if you were to suddenly show your face.

Regulators are playing a game of treat the symptom, not the disease when it comes to Bitcoin as they struggle to keep up. This has seen tax agencies still scratching their heads, leaving massive loopholes for Bitcoiners.

However, those with massive fortunes who are publicly known would most likely be the first in the firing line.


Source: https://cointelegraph.com/news/bitcoin-billionaires-hiding-in-plain-sight

[BitHodler]

200 Bitcoin billionaires? That's pretty much too optimistic. However, they may seem 'hidden' for the majority of the people here, but if they honestly declare their holdings, they aren't that hidden at all.

Problem is that you as wealthy hodler has to make an important and well thought out choice. If you keep your wealth in Bitcoin hidden, there is basically no way to liquidate a large chunk without being noticed.

If you declare your holdings, it takes a massive amount of weight off hour shoulders. Tax evasion on such a large scale may lead to an insane jail sentence, which if you look back, isn't really worth hiding it for.

It's your own wealth, but if you hide it from the authorities, you'll be treated the same, or even worse than a murderer. What a twisted and broken system this is.

[buwaytress]

200 Bitcoin billionaires? That's pretty much too optimistic. However, they may seem 'hidden' for the majority of the people here, but if they honestly declare their holdings, they aren't that hidden at all.

Problem is that you as wealthy hodler has to make an important and well thought out choice. If you keep your wealth in Bitcoin hidden, there is basically no way to liquidate a large chunk without being noticed.

If you declare your holdings, it takes a massive amount of weight off hour shoulders. Tax evasion on such a large scale may lead to an insane jail sentence, which if you look back, isn't really worth hiding it for.

It's your own wealth, but if you hide it from the authorities, you'll be treated the same, or even worse than a murderer. What a twisted and broken system this is.

I guess that's where the phrase "hidden in plain sight" - just like in "real life", we all know who the billionaires in our town are, even if they never get listed in a wealthy list of they never declare ownership of wealth. But while one can only assume what people is worth by observation, the blockchain allows a shrewd and persistent investigator, armed with the most sophisticated of forensics blockchain software, will eventually be able to place the Bitcoins with identities - not necessarily names, but users identified by address, platform, IP, behaviour.

I'm sure a lot of those people (individuals anyway) who held lots are regretting not spreading out their coins. As you say, they're all probably watched. But yeah, I'd just declare everything if I owned that much. I like paying my taxes anyway.

[error08]

If there are so many of these billionaires out there making a massive profit from some savvy early investing or clever trading perhaps, why are they so hidden and secretive?
Because
those with massive fortunes who are publicly known would most likely be the first in the firing line.
If I have tons of bitcoin or just BTC1, I won't declare it in an open forum or anywhere, just keep it in secret, get into trading and invest on some business.
There is no any benefits to shows how much you have in your wallet obviously, even some criminals will kidnap a bitcoin millionaire if they know about his wallet.

[darkangel11]

200 Bitcoin billionaires? That's pretty much too optimistic. However, they may seem 'hidden' for the majority of the people here, but if they honestly declare their holdings, they aren't that hidden at all.

Problem is that you as wealthy hodler has to make an important and well thought out choice. If you keep your wealth in Bitcoin hidden, there is basically no way to liquidate a large chunk without being noticed.

Depends on how big of a chunk we're talking about. You could always start a business that would act like a laundry and it's really easier to do than you might think.

If you declare your holdings, it takes a massive amount of weight off hour shoulders. Tax evasion on such a large scale may lead to an insane jail sentence, which if you look back, isn't really worth hiding it for.

It's your own wealth, but if you hide it from the authorities, you'll be treated the same, or even worse than a murderer. What a twisted and broken system this is.

That's why people should stand against it, fight it and hide from it. There are still places on Earth where you aren't prosecuted for trading cryptocurrency, and where you aren't robbed of your money by the authorities. Hide while you can before the socialists come and make you "equal" 

[iamTom123]

200 Bitcoin billionaires? That's pretty much too optimistic. However, they may seem 'hidden' for the majority of the people here, but if they honestly declare their holdings, they aren't that hidden at all. Problem is that you as wealthy hodler has to make an important and well thought out choice. If you keep your wealth in Bitcoin hidden, there is basically no way to liquidate a large chunk without being noticed. If you declare your holdings, it takes a massive amount of weight off hour shoulders. Tax evasion on such a large scale may lead to an insane jail sentence, which if you look back, isn't really worth hiding it for. It's your own wealth, but if you hide it from the authorities, you'll be treated the same, or even worse than a murderer. What a twisted and broken system this is.

We have to understand why many Bitcoin billionaires and even millionaires for that matter would not want to get into the spotlight because not all of us are like the Winklevoss twins who are already used to the attention they are getting. Personally, if I were a big Bitcoin holder I would not want people to know about it because it can attract undue attention from people who I don't want to meet and greet. One of the main reasons why we are in cryptocurrency is to remain partly anonymous. Hiding from the limelight does not equate to tax evasion because by the time we are converting our holdings to fiat money there is no choice but to declare and pay the required tax. Right now, there are still some ways available not to be fully detected when converting though it is already impossible to do it 100% anonymous.

[Coin-Keeper]

It is very dangerous for "average joe" to be a public "large holder" of coins.  While not a whale, lets say you had 1000 BTC and it was an established fact.  Using $15,000.00 as a coin value that is 15 million in value.  Can you imagine having groups of folks know you are holding 15 million dollars in CASH in your home?  Can you say crime magnet.  I would never cashout under my own name for over 5 BTC at today's numbers.  Use an LLC or something legal but not YOU.