Do people realize the population of the earth increases by 200,000 every day?
Even if Bitcoin was perfectly distributed between all wallets it would still involve less than 0.01% of the population owning 100% of the currency that some people claim will become the dominant global currency for the next 100 years.
88% of all United States wealth is owned by 20% of the population.
According to your source: 90% of all bitcoins are owned by 2.2% of bitcoin holding individuals.
Looks like the bitcoin cartel (whales can cheat through market manipulation) is more dominant than the banking cartel currently. In terms of decentralization of wealth; bitcoin has a ways to go. Invest accordingly.
I can agree that might fit for a few, but i would argue the majority of whales are there to exploit their first mover advantage and spend frivolously. like trump, paying immigrant workers pennies, when caught, dumps his workers as exploitative behavior becomes an inconvenience.
Not pointless. Unless you can show that people are more likely to split their coins into multiple wallets than they were a couple years ago when the price was rising (which makes no sense because people would have been putting eggs in different baskets when the price was going up, not as much on the way down), this is an extremely valid metric.
TLDR -- people have always split coins into smaller wallets. there is no reason to think they're doing this more now than before. ergo, more people are buying Bitcoin in smaller amounts, and wealth is being distributed more equitably.
Yeah, the article goes as far as to admit it is being sensational:
> The same very small number of the largest wallets still appear to control 80% of all the Bitcoin supply
More Bitcoin has been mined in the 2 years since the 2017 survey, this stat shows it's just going to the whales anyway.
No he doesn't. Unless you think the percentage "aggregated in exchange wallets" or number-of-wallets/whale ratio has increased, this metric points to only one logical conclusion: Bitcoin wealth is being spread.
I hope the price stays down longer so more people can get on board before the financial crisis hits.
This is very messy data to drive any conclusions to begin with due to:
- the many-to-one relationships of wallets to a person
- the one-to-many relationship of an exchange wallet to people
This phenomenon thus can be explained by many potential developments:
A natural development of the 2017 craze finally fading out and the weak hands selling their coins from exchanges can explain it, since this would mean some of the top addresses losing the total crypto held in their wallets
Exchanges continuously increasing the number of cold storage they have and distributing the coins to mitigate the risk of hacking, which in return also increases this metric
New investors in crypto who had the old money due to late 2018 stock developments (i.e. some of the rich folks finally decide to diversify their 3-5% holdings into crypto currency)
Hodlers not buying new coins and thus the mined coins going to bottom 90th percentile of wallets (though I would like to believe this is not true)
I can count 50 other reasons why this might have happened, and plenty of them does not let you drive the conclusion this "Head of Data Science" guy did, so I am really curious where their confidence in what this means comes from.
No way to be sure but why would wealthy individuals suddenly split their wealth in 50% more wallet?
Logic/statistic dictates that it is likely more people. From 6 to 8% is a significant statistical difference.
If I had 100 BTC sitting in a single wallet and we started seeing prices go up (or if I believed prices would go up), I'd start splitting that into multiple smaller addresses, so that if anything got compromised, it wouldn't be the whole pot, but only a portion. 4 25-btc wallets would work for the time being, until you wanted 20 5-btc wallets if Bitcoin hit 100k... You're just dividing up your losses/compromises slightly, provided you retain a strong way to retain your keys/password (n of m, approvals, etc).
first of all those aren't wallets, they are addresses
many of those addresses can be from same wallet since by default addresses aren't reused
I have countless small amounts spread over countless addresses created by countless wallets, many of them are too small to bother spending, some are cold storage, some I'm just lazy about
I also have large amounts on exchange sometimes like countless others
This article is nonsense
> I also have large amounts on exchange sometimes like countless others
Doing it wrong. The only reason to put it on an exchange is to sell it. You should be taking it off exchanges if you intend to keep it. Exchanges do shady things with the coins entrusted to them.
Sell those coins if that's your intention. Move them to cold storage if you don't need the fiat. Don't get Goxed or QuadrigaXed.
The article is not nonsense. It shows that more retail investors are in the game and buying this generous discount.
Volume of transaction? When has it ever influenced price?
Volume that traders and investors care about is the one on exchanges. Exchange is a single big wallet, each, and is the biggest reason why 99% of wealth is on 8% of wallet.
Umm, you're joking, right? People use volume to guage how many people are using the system. There's plenty of posts on all the crypto subreddits that have graphs of volume that are meant to pursuade people to be bullish.
If I was a BTC whale I'd feel incentivized to split up my wallets and improve these stats so people feel more comfortable investing. It would require minimal effort with everything being automated. It seems more illogical not to do so.
I see cryptocurrencies as financial instruments that also happen to be based on various protocols. For me and a lot of other people, there would be no interest if it wasn't for the investing aspect. It would be about as exciting as TCP/IP.
It's not an investment. Investments have underlying fundamentals and built-in value.
Bitcoin has no fundamentals, no income and no built-in value. It is merely worth what someone else wants to pay you for it.
It's a speculation at best.
Somebody doesn't understand Bitcoin. A network hundreds of times more powerful than every machine in every Amazon and Google data center combined securing your money has no value? If Google and Amazon combined every computer they have, from employee laptops to massive data centers, and mined Bitcoin, they would control about 5 percent of the hash power. No value in that. Much better to keep it in some banker's editable database.
Controlling your own money without need of any middlemen, being able to send it anywhere in the world in any amount almost instantly and at 1/100th the cost (talking about large transactions) of what a banker would charge in a matter of minutes instead of days? Yeah, no value in that.
Bitcoin is not a stock or bond. This is true. But it is most definitely an investment, especially now that it's massively undervalued.
If it’s undervalued what’s the fair value?
Also, what percentage of the population want or need to send their money anywhere in the world? Would love to know that statistic which apparently makes bitcoin so invaluable.
No reason that they would have done it more in 2018 than before, really. Actually, I'm sure at least as many people consolidated in a single wallet now that transaction are cheaper than whales splitting on "many wallets to boost confidence of investors". Whales wouldn't care about a 10$ fee. Someone consolidating smaller amount would.
Even a whale has such a low impact compared to exchanges.
It seems much more likely that this bump from 6 to 8% is due to people taking out their fund from exchanges. Which is a great thing.