2000 Bitcoin Hodlers Control 40% of Circulation; Stacking Sats Is More Important Now Than Ever
The Bitcoin ownership and distribution are still circulating among few, despite Satoshi Nakamoto designing the crypto coin to be used by everyone. The destitution of the cryptocurrency is still like the distribution system of the Fiat money. The way the system is organized, only those who mine the crypto coins could have the opportunity of owning them in large amounts.
But even this group is not finding it easy. Large-scale miners are still finding it difficult because of the huge capital outlay involved in buying tools they need for mining. Other people who accumulate a small number of Bitcoins have to work very hard for it, especially those who see the crypto coin as their only source of income.
— Richard Heart (@RichardHeartWin) November 19, 2019
The Future Outlook for Bitcoin
The way Satoshi designed Bitcoin, it should work perfectly in a competitive economy. It was not meant to serve as payment for philanthropic purposes.
If Bitcoin is going to change the status quo in the world’s financial system, it doesn’t need to rub shoulders with the current government-controlled financial system. It should not follow the platform set by the World’s banking system.
Bitcoin needs to operate separately as a unique and distinct currency platform. But that has not been the case yet. Instead, the currency is gravitating towards the operational framework of the banking system. This may not be the idea Nakamoto had in mind while designing the crypto coin.
Bitcoin Camouflaging inside the Old Currency System
In reality, the world may remain as unchanged as it is now with a very wild margin between the rich and the poor, and Bitcoin is unlikely going to change that.
If less than 2,000 people are holding 40% of the world’s Bitcoin, it means that the currency may not be different from Fiat money, based on distribution.
Few people are controlling most of the world’s resources. The same thing is playing out in the cryptocurrency market. Despite the lofty goals of the inventors and stakeholders in Bitcoin, it seems the currency has not gone far from what is happening in the mainstream.
Altcoin Wealth Concentrations also in the Hands of Few
Bitcoin is not the only cryptocurrency having this issue. Altcoins are having the majority of its distribution in fewer addresses.
For example, about 39 percent of Ethereum’s circulation is with only 151 addresses. Similarly, Litecoin has 47% of its distribution in 131 addresses. On the same note, the world’s supply of 29% bitcoin cash is distributed among just 112 addresses. The same wealth concentration applies to Tether (63% in 132 addresses), Cardano (39% in 103 addresses), and Bitcoin SV (24% in 103 addresses).
Since millions of people are trading and investing in cryptocurrency, one would think the distribution process would be fairly better. But it seems the market is still treading on the path of the Fiat currency.
It is unclear whether this inequality distribution of the currency will remain the same or improve in the future.
But from IntoTheBlock’s observation offered by tweet,
Talking about whales and ownership by concentration of an asset
— intotheblock (@intotheblock) November 20, 2019