According to a new study, less than 1% of the largest Bitcoin (BTC), hodlers control more than 25% of all BTC in circulation.
The National Bureau of Economic Research is an American private non-profit research organization. It released a study that claimed that 10,000 Bitcoin accounts (0.01% of all holders of BTC) own 5,000,000 BTC. This represents 27% of all 18,9 million coins currently in circulation.
According to The Wall Street Journal, the amount of Bitcoin held by the “one percent,” is approximately $232 billion.
The study was conducted by Igor Makarov, a London School of Economics professor and finance professor at MIT Sloan School of Management. It aims to show that Bitcoin is not as decentralized as you might think.
Schoar stated that despite being around for 14 years, and all the hype surrounding it, it is still a concentrated ecosystem.
According to the WSJ report the top hodlers have a larger share of BTC than what the wealthiest American households own in dollars. The report cites data from the United States Federal Reserve and notes that the wealthiest 1% of U.S. households have about a third.
This new report could be alarming to the crypto community, as many prominent Bitcoin advocates have been advocating decentralization as one the most important principles of the Bitcoin network.
Similar: Fish food? Data shows that whales are being sold by retail investors, while Bitcoin is being purchased by retail investors.
Mati Greenspan of Quantum Economics, Mati Greenspan’s founder, said that Satoshi Nakamoto is responsible for a large portion of the circulating BTC supply. He is the anonymous creator of Bitcoin. Greenspan stated that Satoshi Nakamoto’s coins make up more than 5%.
“Over time, Bitcoin ownership is intended to become more distributed.” The opposite happens for fiat.
Notably, a large portion of BTC’s circulating supply cannot be controlled by anyone. It is possible that it will disappear forever. Coincover, a crypto-insurance company, estimates that around 4 million BTC are out of circulation as a result of lost access.
Eileen Wilson –Technology and Energy
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