0.01% of Bitcoin holders control 27% of all circulating coins: Study
According to a new analysis, less than 1% of the top Bitcoin (BTC) hodlers control more than a quarter of all BTC in circulation.
According to a report published by the National Bureau of Economic Research, 10,000 Bitcoin investors, or 0.01 percent of all BTC holders, control 5 million BTC, or 27 percent of the total 18.9 million coins in circulation.
According to the Wall Street Journal on Monday, the “one percent” owns around $232 billion worth of Bitcoin.
The research, led by MIT Sloan School of Management finance professor Antoinette Schoar and London School of Economics finance professor Igor Makarov, tries to show that Bitcoin is not as decentralized as one might expect.
“Despite the fact that it’s been there for 14 years and the fanfare it’s gotten, it’s still a very focused ecology,” Schoar said.
The top hodlers, according to the WSJ analysis, control a larger fraction of BTC than the wealthiest American households do in cash. According to the paper, the wealthiest 1% of US families own almost a third of all wealth, according to figures from the US Federal Reserve.
The latest analysis may come as a shock to the crypto community, given key Bitcoin proponents have pushed decentralization as one of the network’s most important concepts.
According to Mati Greenspan, inventor of Quantum Economics, Satoshi Nakamoto, the pseudonymous creator of Bitcoin, controls a large portion of the circulating BTC supply. “Satoshi’s currencies alone account for more than 5%,” Greenspan said to Cointelegraph.
“Bitcoin ownership is meant to become increasingly spread over time.” In the case of fiat, the reverse is more likely to occur.”
It’s also worth mentioning that a large portion of BTC’s circulating supply is reportedly uncontrollable and will most likely be lost forever. According to Coincover, a crypto-insurance service, roughly 4 million BTC have been taken out of circulation owing to a lack of access.