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The top 0.01% of bitcoin holders control nearly a third of the $232 billion digital currency


A new study finds that Bitcoin ownership is highly concentrated, with only 0.01 percent of all owners controlling 27 percent of the cryptocurrency.

The top 10,000 bitcoin accounts hold 5 million bitcoins, worth about $232 billion at current prices, according to a recent study by the National Bureau of Economic Research.

This level of concentration brings “systemic risk” in part because a small number of people can cause prices to crash if they sell their property on the spot.

‘Despite it’s been around for 14 years and the hype it has been building, it’s still a case of being a highly concentrated ecosystem,’ said Antoinette Scheuer of MIT’s Sloan School of Management at MIT.

The study was conducted by mapping every transaction in Bitcoin’s history for the first time ever, and found that the concentration of wealth in the cryptocurrency is greater than in the US economy as a whole.

A new study finds that the top 10,000 bitcoin accounts hold 5 million bitcoins, worth about $232 billion at current prices and 27% of the total available.

In the United States, where wealth inequality is rising rapidly, 1 percent of households own about a third of all wealth, according to the Federal Reserve.

The study by Schoar and Igor Makarov at the London School of Economics warns that despite its promise of decentralization, Bitcoin has become highly centralized in a number of important ways.

The study found that an estimated 114 million people own bitcoin worldwide, but nearly a third of the value is concentrated in 0.01 percent of accounts.

The authors found that major bitcoin exchanges account for 75% of real bitcoin transaction volume, and that bitcoin mining capacity is “highly concentrated.”

Bitcoin has been on the rise since March 2020, when it was trading at around $5,000, and reached a peak of $68,990.90 last month.  It has since fallen from record levels

Bitcoin has been on the rise since March 2020, when it was trading at around $5,000, and reached a peak of $68,990.90 last month. It has since fallen from record levels

When Bitcoin was first launched, anyone could create a node on their computer to process transactions, also known as mining, but the endeavor is now highly specialized, and requires vase computing power.

The authors wrote: “Our findings indicate that despite the significant interest that Bitcoin has received over the past few years, the Bitcoin ecosystem is still dominated by large and focused players, whether they are major miners, Bitcoin holders or exchanges.

This inherent focus makes Bitcoin vulnerable to systemic risk and also means that the majority of gains from further adoption are likely to fall disproportionately to a small group of participants.

The total number of bitcoins to ever be created is algorithmically limited to 21 million.

The study found that an estimated 114 million people own bitcoin worldwide, but nearly a third of the value is concentrated in 0.01 percent of accounts.

The study found that an estimated 114 million people own bitcoin worldwide, but nearly a third of the value is concentrated in 0.01 percent of accounts.

There are currently about 19 million bitcoins in circulation, and the rate at which new coins are created is slowing down over time.

More than 1 million bitcoins, worth about $50 billion, are owned by the creator of bitcoin, known as Satoshi Nakamoto, whose true identity is unknown, and whose accounts have been untouched for more than a decade.

Bitcoin has been on the rise since March 2020, when it was trading at around $5,000, and reached a peak of $68,990.90 last month. It has since fallen from record levels.

On Monday, the two cryptocurrencies, Bitcoin and Ether, were down, with Bitcoin down 1.5 percent at $46,147.78, and Ether down 2.2 percent at $3,819.51.



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