CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$30,493.00
  • ethereum
    ETH$2,093.11
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Crypto Fund
    Home » Crypto News » Bitcoin Whale Wealth Control Highlights Currency Centralization: Report

    Bitcoin Whale Wealth Control Highlights Currency Centralization: Report

    Author: Martin Young

    Last Updated Dec 21, 2021 @ 07:20

    New research has shed more light on the amount of Bitcoin held by just a fraction of a percent of addresses.

    A tiny minority of entities control the lion’s share of the world’s most popular digital asset. The top 1% of Bitcoin holders control more wealth than the majority of affluent households in the United States, according to new research.

    An even more shocking statistic is that just 0.01% of Bitcoin holders control 27% of the currency in circulation. A Dec. 20 report by the Wall Street Journal has delved into the dynamics of Bitcoin supply and where it is concentrated.

    A study by the National Bureau of Economic Research revealed that the top 10,000 BTC addresses hold 5 million coins, currently worth around $235 billion. This is about the same as the market capitalization of Pepsico, the world’s 48th largest company.

    Bitcoin Whales Wealth Growing

    The research added that with an estimated 114 million people holding BTC globally, this tiny fraction controls 27% of the 19 million coins in circulation. It did not specify whether these addresses belonged to exchanges or custodians, however.

    The Bitinfocharts BTC rich list reports that the Binance cold wallets are the top 2 addresses holding a combined 433,490 BTC worth around $20 billion.

    ADVERTISEMENT

    The figures reflect the current status of wealth disparity in the United States where the top 1% of households hold about a third of all wealth, according to the Federal Reserve.

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

    The paper argues that there are two ramifications of this centralization. Firstly, the entire network is more susceptible to systemic risk, and secondly, the wealth from this new financial freedom network is being concentrated to a very small number of entities. Antoinette Schoar commented:

    “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,”

    The WSJ went on to say that Bitcoin mining is also centralized as it is controlled by a small number of companies and pools and cannot be practically attempted by individuals.

    BTC Price Outlook

    Bitcoin prices have made a small bounce over the past 24 hours and were trading at $47,107 at the time of writing according to CoinGecko.

    The asset is currently down trending, having lost 6.7% over the past fortnight. It has now corrected 31.7% from its Nov. 10 all-time high, but this is not the largest correction of the year, and it is still too early to call it a bear market.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • BitcoinMoon
      3 Factors That Could Initiate the Next Bitcoin Price Leg Up
    • Singapore
      Fintonia Launches Two Bitcoin Funds For Professional Investors in Singapore
    • EricAdams
      Mayor of New York Will Accept His First Three Paychecks in Bitcoin
    Tags: Bitcoin
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Martin J. Young
    More posts by this author

    Martin has been writing on cybersecurity and infotech for over two decades. He has previous trading experience and has been covering developments in the blockchain and cryptocurrency industry since 2017. Contact Martin: LinkedIn

  • bitcoin
    BTC$30,493.00
  • ethereum
    ETH$2,093.11
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    Our Ambition is to Become the Amazon of Crypto: Interview with Coinbase’s Guillaume Chatain

    Our Ambition is to Become the Amazon of Crypto: Interview with Coinbase’s Guillaume Chatain

    Bittrex CBO: Why Bittrex Lost its Lead, Token Sales’ Critical Mistakes, and How to Get Listed (Interview)

    Bittrex CBO: Why Bittrex Lost its Lead, Token Sales’ Critical Mistakes, and How to Get Listed (Interview)

    What is Balancer Protocol? Everything You Need to Know

    What is Balancer Protocol? Everything You Need to Know

    Coinbase Wallet For Beginners: The Complete Guide

    Coinbase Wallet For Beginners: The Complete Guide

    Tether Has No Plans to Go Public: CTO Paolo Ardoino (Exclusive Interview)

    Tether Has No Plans to Go Public: CTO Paolo Ardoino (Exclusive Interview)

    NFTs Will Play a Critical Role and Translate into Transferable Credentials: HBAR’s Alex Russman (Interview)

    NFTs Will Play a Critical Role and Translate into Transferable Credentials: HBAR’s Alex Russman (Interview)

    What is Azuki? All You Need to Know About the NFT Collection

    What is Azuki? All You Need to Know About the NFT Collection

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!