Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
0.01% of all holders have 5 million bitcoins, the study revealed. Is Bitcoin more unequal than the U.S. in terms of wealth distribution?
The richness of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. is concentrated in the pockets of a few investors, a recent report has highlighted.
Less than 0.5% of the holders of bitcoins control a little more than a quarter of the total outstanding supply of the leading cryptocurrency. The finding is part of recent research by the National Bureau of Economic Research (NBER), a private, non-profit U.S. research organization.
According to the study, which was reviewed by Wall Street Journal (WSJ) in a Monday release, 10,000 addresses of Bitcoin own 5 million BTC, equivalent to 27% of the 18.9 million BTC in the world. bitcoins currently in circulation .
The 5 million bitcoins held by the small group of investors translate to a sum of USD $230 billion at current prices. Meanwhile, the group of 10,000 owners represents 0.01% of the total number of holders of the flagship cryptocurrency, the report notes. According to data fromCrypto.com, there are about 114 million people worldwide who own the cryptocurrency.
Bitcoin, more unequal than the United States?
The WSJ publication compared the case of Bitcoin with wealth inequality in the United States. According to the report, the main holders of bitcoins control a larger share of wealth in digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets than more affluent U.S. households in dollars.
“ By comparison, in the United States, where wealth inequality is at its most extreme in decades, the richest 1 percent of households own roughly one-third of all the wealth in the world. “, said the report citing data from the Federal Reserve (FED).
The NBER study, which was conducted by professors Antoinette Schoar, of the Sloan School of Management of MIT, and Igor Makarov, of la London School of Economics analyzed the historical transactions of bitcoins during the more than ten years that the asset has been held and calls into question the supposed decentralization the handover of control from a central authority to several different custodians. of the main cryptocurrency.
“ Despite being on the market an area or arena, online or offline, in which commercial dealings are conducted. for 14 years and the promotion it has been given, it is still a very concentrated ecosystem. “Schoar said about Bitcoin . Proponents of cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. have long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. described it as a decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. financial mechanism accessible to all without discrimination, although the issue about the concentration of Bitcoin has been widely discussed by the community.
A few months ago, NBER had published other research which produced similar data on the centralization of digital assets. At that time, the study had revealed that the top 10,000 individual investors in Bitcoin hold about a third of the total coins in circulation.
The group had also found relevant data on concentration in the mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. sector. According to NBER, only the top 10% of miners contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office. are responsible for 90% of the mining capacity of the country. Bitcoin an alarming metric in terms of network a network refers to all nodes in the operation of a blockchain at any given moment in time. security. Recall that a high concentration of the blockchain’s mining power could make it more vulnerable to a 51% attack.
Let’s not forget the bitcoins lost
It should be noted that Bitcoin has a limited supply of 21 million tokens of which 18.9 million have been mined and represent the circulating supply of the main cryptocurrency, according to current data from CoinMarketCap . This means that 90% of the bitcoins that will exist have already been successfully mined, a factor that makes currency currency is a medium of exchange that defines value. an increasingly scarce asset.
However, it should be noted that not all of the Bitcoin mined is indeed circulating in the market. A report from cryptocurrency data firm Chainalysis published in January estimates that about 20% of the more than 18 million people who live in the Bitcoin are now lost forever . This translates to about 3.7 million BTC lost – or inaccessible. for reasons ranging from the loss of private keys until the death of its possessors.
This group of lost bitcoins could include the fortune of coins belonging to the mysterious creator Satoshi the smallest unit of bitcoin with a value of 0.00000001 BTC. Nakamoto. According to the founder of Quantum Economics , Mati Greenspan about 5% of the supply of Bitcoin is in Nakamoto’s hands; although it is worth noting that the addresses associated with the inventor have not seen any movement for more than 10 years.
“ Over time, Bitcoin ownership is designed to become more distributed. For fiat, the opposite tends to be true. “Greenspan commented in defense of the progressive decentralization of the wealth of the Bitcoin as quoted by Cointelegraph .
- 90% of the total Bitcoin supply has already been mined, but it’s still early days
- Over 99% of the current Bitcoin supply is held by only 10% of BTC addresses.
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Article by Hannah Estefania Perez / DiarioBitcoin
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