According to a study, 0.01 percent of Bitcoin owners own 27 percent of all circulating currencies.

According to a study, 0.01 percent of Bitcoin owners own 27 percent of all circulating currencies.According to reports, Bitcoin's "one percent" owns more BTC than the wealthiest US households own in USD.

According to a new analysis, less than 1% of the top Bitcoin (BTC) hodlers control more than a quarter of all BTC in circulation.

According to a report published by the National Bureau of Economic Research, 10,000 Bitcoin investors, or 0.01 percent of all BTC holders, own 5 million BTC, or 27 percent of the total 18.9 million coins in circulation.

The amount of BTC held by the “one percent” is equivalent to approximately $232 billion, the Wall Street Journal reported on Monday.

The study, which was conducted by finance professors Antoinette Schoar at the MIT Sloan School of Management and Igor Makarov at the London School of Economics, aims to demonstrate that Bitcoin is not as decentralized as one might think.

“Despite having been around for 14 years and the hype it has ratcheted up, it’s still the case that it’s a very concentrated ecosystem,” Schoar said.

The top hodlers, according to the WSJ analysis, control a larger fraction of BTC than the wealthiest American households do in cash. According to the paper, the top 1% of US families own almost a third of all wealth, according to figures from the US Federal Reserve.

The new analysis may come as a shock to the crypto community, given key Bitcoin proponents have pushed decentralisation as one of the network's most important concepts.

According to Mati Greenspan, inventor of Quantum Economics, Satoshi Nakamoto, the pseudonymous creator of Bitcoin, controls a large portion of the circulating BTC supply. "Satoshi's coins account for over 5% of the total," Greenspan stated, adding:

“Over time, the ownership of Bitcoin is designed to get more distributed. For fiat, the opposite tends to happen.”

It's also worth noting that a large portion of BTC's circulating supply is reportedly uncontrollable and will most likely be lost forever. According to Coincover, a crypto-insurance service, roughly 4 million BTC have been taken out of circulation due to a lack of access.

kobocrypto comments are now open to all! Please keep discussions civil and on-topic.

DISCLAIMER

The opinions expressed here do not reflect those of kobocrypto.com or any of its employees.

Post a Comment

0 Comments