Bitcoin (BTC)Crypto News

Bitcoin Whale Wealth Control Highlights Currency Centralization: Report

                                                            Eine winzige Minderheit von Unternehmen kontrolliert den Löwenanteil des weltweit beliebtesten digitalen Assets.  Die obersten 1% der Bitcoin-Besitzer kontrollieren laut einer neuen Studie mehr Vermögen als die Mehrheit der wohlhabenden Haushalte in den Vereinigten Staaten.

An even more shocking statistic is that only 0.01% of Bitcoin holders control 27% of the currency in circulation. A December 20 report in the Wall Street Journal looked at the dynamics of the Bitcoin supply and its concentration.

A study by the National Bureau of Economic Research found that the top 10,000 BTC addresses contain 5 million coins, currently valued at around $ 235 billion. This corresponds roughly to the Market capitalization from Pepsico, the 48th largest company in the world.

Bitcoin whale’s wealth is growing

The study added that with an estimated 114 million people owning BTC worldwide, that tiny fraction controls 27% of the 19 million coins in circulation. However, it was not stated whether these addresses belonged to exchanges or custodians.

The Bitinfocharts BTC Rich List reports that Binance’s cold wallets are the top 2 addresses, which together hold 433,490 BTC worth around $ 20 billion.

The numbers reflect the current level of wealth inequality in the United States, where the top 1% of households own about a third of all wealth, according to the Federal Reserve.

The study was conducted by finance professors Antoinette Schoar from the MIT Sloan School of Management and Igor Makarov from the London School of Economics. According to WSJ, it has mapped and analyzed every transaction in Bitcoin’s history.

The paper argues that this centralization has two effects. First, the entire network is more vulnerable to systemic risk, and second, the richness of this new financial freedom network is concentrated in a very small number of companies. Antoinette Schoar commented:

“Even though it’s been around for 14 years and there’s been a hype, it’s still a very concentrated ecosystem.”

The WSJ went on to say that Bitcoin mining is also centralized in that it is controlled by a small number of companies and pools and is practically impossible to attempt by individuals.

BTC-Price outlook

Bitcoin prices have increased slightly in the past 24 hours and were trading at $ 47,107 at the time of writing, according to CoinGecko.

The asset is currently on a downtrend after losing 6.7% in the past two weeks. It has now corrected 31.7% from its all-time high of November 10, but this is not the largest correction of the year and it’s too early to get by one Bear market to speak.


Source: Crypto News Deutsch

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