#840 new
cuber white

Bitcoin the currency of the rich?

Reported by cuber white | November 11th, 2019 @ 09:26 AM

Even the young Bitcoin world is divided into rich and poor. More than 40 percent of all Bitcoins are in the hands of multimillionaires.

Bitcoin is not just any digital currency. In the eyes of its followers, the world’s first and most important crypto coin is nothing less than a tool to break the power of the classic banking and financial players.

Ten years after its inception, it now becomes apparent that the real social conditions are also reflected in the supposedly anarchic grassroots world of cryptocurrencies. This is evident, for example, when looking at the distribution of Bitcoin wealth.

As a new study of the industry portal Kryptoszene.de based on the blockchain analysis page Bitinfocharts shows, the inequality in the crypto world is particularly pronounced. The most important results:

There are a total of 13.5 million Bitcoin accounts (addresses). According to the survey, just under 42 percent of them are 1000 Bitcoin or more – equivalent to one million or even billions of dollars in dollars.

Three account holders alone own just under 2.5 percent of all issued coins. 12.5 percent of the coins are in 106 accounts: their owners form the super-rich of the crypto world and have 10,000 to 100,000 virtual coins equivalent to the current value of about 20.8 billion dollars.

On the other hand, almost half of all Bitcoin holders share the homeopathic sum of just 0.02 percent of total assets. On the vast majority of accounts, bitcoins are valued at less than $ 10.

“The imbalance is immense,” concludes Kryptoszene.de. Above all, the findings were astonishing “that the decentralized nature of Blockchain would suggest that the gap between rich and poor in crypto-space would be smaller.”

One thing is clear: the survey has methodological weaknesses. Blockchain analysis does not allow conclusions as to whether an individual’s Bitcoin account belongs to a crypto firm or even a large asset manager. In this respect, the conclusion that the thickest accounts are in the hands of individual millionaires and billionaires, to be treated with caution. It is also unclear from which countries and continents the holders come.

However, observers from m8x.com say that the arm-and-scissors gap in the crypt world is particularly wide-open. This is also due to the rapid development of the market, explains Philipp Sandner, Head of the Blockchain Center of the Frankfurt School of Finance and Management. “Few people keep many bitcoins,” he says.

As long as the currency led a niche existence, that was not further problematic. However, as a result of the rapid increase in the Bitcoin price from less than a cent ten years ago to the current level of around $ 9,300, their wealth has increased enormously. “This can cause problems, especially if you do not even know who those people are,” Sandner warns.

Check https://www.m8x.com/ for more news about cryptocurrency.

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