There is a common misconception that a majority of the people that are super rich are going to get displaced if bitcoin and other cryptocurrencies become worth a massive amount of money. However, in reality the way that wealth distribution works is some people will get insanely rich, but the vast majority of people will end up just getting rich and selling their coins to people who are extremely wealthy now. Due to many of us having much lower opportunity costs (Many of us might cash out if we had a few million in coins, while people who have billions of dollars wouldn’t ever cash out), it makes sense that the majority of people buying will be people who had money before bitcoin.
Even now if we look at the people who have a massive amount of bitcoin like Brock Peirce, the Drapers, Winkelvoss twins, ect. They already had a fortune before bitcoin even came around so they were able to freely invest and gamble a million or more in the early days just in the case that it was successful. As much as we want the wealth distribution model to change, bitcoin most likely will not be the mechanism that changes it.
That being said bitcoin will make some people poorer in the grand scheme of all the wealth if they choose to not invest at all and many people move money from other assets into it. But like I said before, these people are most likely already wealthy and losing out on another twenty million dollars really wont be a huge hit to them or their future. They already have a level that will sustain them and their family for the rest of their lives, so it makes little difference.
There will definitely be outlier cases of people who people insanely wealthy, like Roger Ver, but im just talking about the average person who invests. Like I said before, it doesn’t mean that you cant make a ton of money and secure financial freedom for yourself and your loved ones, that is definitely possible. However many people saying this will be the biggest wealth transfer in human history aren’t correct.
The reason so many people keep saying institutional money isn’t here is because we would know it if it were. These people with millions of dollars who want to purchase coins so they can be involved in the space will start flocking in, at the advice of their financial advisers. It will waterfall at that point and we will know. This is why I usually say try and not sell all your coins or sell as few as you can and just live a normal life because people have a bad time estimating exponential growth. There is a chance we can be very wealthy so lets do our best to avoid the rich gobbling up crypto like they do every other asset. It will still happen, but it happens more if we sell on fud and other short term news.
Thanks to @Elyaque for the badges