National Business Daily (NBD) claimed this week $62 billion worth of bitcoin core (BTC) is held in less than 1% of all known addresses. Concentration of the world’s most popular cryptocurrency is of great interest to enthusiasts, as fears of centralization, cartels, and BTC’s future continue to mount.
$62 Billion BTC Held in Less Than 1% of All Known Addresses
Chinese state run media outlet NBD analyzed BTC addresses, finding $62 billion worth of the coin are concentrated in less than 1% of all known addresses. Apparently, NBD also claims over 22 million BTC addresses exist containing various amounts.
The vast majority, according to NBD, don’t add up to a single, full bitcoin. That concentration is also probably due to the amount crypto exchanges hold, which could make it seem as if just a relatively few people have BTC when in reality many millions split from that one wallet.
And while the addresses and their respective amounts are known, the owners are not. This has led to worries about market manipulation, as such giant players, whales, can dart in and out of markets at will, severely impacting prices.
The state-run media outlet’s research follows Chainalysis’ late 2018 findings where less than 40% of BTC addresses are considered economically relevant. The rest is largely split between so-called dark web participants, exchanges, while only about 20% is used in transactions. NBD also asserted well over 95% of all BTC addresses hold less than 5% of bitcoin in circulation, which is roughly $3 billion.
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