image

More Than a Quarter of All Bitcoin in Circulation Is Controlled by Few Investors

The research was led by two finance professors Antoinette Schoar from MIT Sloan School of Management and Igor Makarov from London School of Economics. They were able to study and analyze all bitcoin data since its inception, 13 years ago. This research was possible because Bitcoin uses blockchain technology, which registers every transaction and all the data that happens on the bitcoin network are on a public ledger, so anyone can access and analyze this “on-chain” data.

There is 19 million bitcoin in circulation and the study showed that the first 10,000 wealthiest bitcoin wallets hold 5 million bitcoin ($230 billion equivalent at the time of this writing), and with an estimation of 114 million wallets around the world holding bitcoin according to Crypto.com, that means that 0.01% of bitcoin holders control 27% of all the bitcoin in circulation. If we compare the wealth in the U.S., according to the Federal Reserve the top 1% of households owns almost a third of all wealth.

Is Bitcoin decentralized as it was meant to be?

One of Bitcoin’s main purposes was to be a decentralized system, however, “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,” Antoinette Schoar commented.

In the study, the professors analyzed two aspects when considering Bitcoin as centralized. First, that the bitcoin network is more vulnerable and second, that the benefits of the global adoption and higher prices goes to a small group of people.

When the researchers analyzed the volume, they said that the “real volume” was only the 10% and were transactions between exchanges and trading desks, and the other 90% of the volume in part was people distributing bitcoin in different wallets to confuse their identity.

What about Bitcoin miners?

One thing to study about is that in order to get bitcoin instead of an exchange, mining equipment has been more difficult to access, because not everyone can afford to pay these high prices, and not only the equipment, but also the electrical infrastructure you need to have.

According to a study of University of Cambridge’s Centre for Alternative Finance, because China prohibited bitcoin mining earlier this year, it went from having almost two thirds of all the Bitcoin mining hashrate of all the network in April, to almost not having any hashrate in July 2021. The Chinese bitcoin miners relocated their mining equipment specially to the U.S., and also other countries like Kazakhstan and Canada.

90% (19 million) of all bitcoin is already mined, and there are only 2 million bitcoins to be mined until 2140. It appears that centralization is a term that nobody wants to hear near the bitcoin ecosystem but the data appears to be that way, we can expect that from today until the last bitcoin is mined, adoption will continue to rise, entering more investors in the Bitcoin world and expect at least that the 10% of the bitcoin is yet still to mined, to be distributed in a more decentralized way than today.


Source link

0 0 votes
Article Rating

S’abonner
Notifier de
0 Commentaires
Commentaires en ligne
Afficher tous les commentaires
Reset Password

Avertissement sur les risques :

Le trading peut vous exposer à des risques de pertes supérieures aux dépôts et ne convient qu’à une clientèle avisée ayant les moyens financiers de supporter un tel risque. Les CFD sont des instruments complexes et présentent un risque élevé de perte rapide en capital en raison de l’effet de levier. Entre 74 et 89% des comptes de clients de détail perdent de l’argent lors de la négociation de CFD. Vous devez vous assurer que vous comprenez comment les CFD fonctionnent et que vous pouvez vous permettre de prendre le risque élevé de perdre votre argent. Ce site n’est en aucun cas une offre de conseil en investissement ni une incitation quelconque à acheter ou vendre des instruments financiers. Trader le Forex et/ou les CFD’s implique un niveau de risque élevé, et peut ne pas être approprié car vous pouvez subir des pertes supérieures à votre dépôt. L’effet de levier peut être en votre défaveur.

Vous devez être conscient et avoir une compréhension complète de tous les risques associés au marché et au trading. Le site Union-trader.com peut être amené à produire des commentaires d’ordre général, ce qui ne constitue pas des conseils en investissement et ne doit pas être interprété comme tel.

Veuillez recourir aux conseils d’un conseiller financier extérieur. Le site Union-trader.com décline toute responsabilité pour les erreurs, inexactitudes ou omissions et ne garantit pas l’exactitude ou le caractère complet des informations, textes, graphiques, liens ou autres éléments contenus dans cette documentation. Toute information et toute mise à disposition sur le site ont un caractère privé.