A new report has found that nearly four million Bitcoin addresses are controlled by ‘whales’ – investors who hold large amounts of the cryptocurrency.
The research, conducted by BitInfoCharts, analyzed data from Bitcoin’s blockchain to identify addresses that hold more than 1,000 BTC – currently worth around $40 million.
According to the report, there are 3,993,772 Bitcoin addresses that fall into this category. That means that just under 20% of all BTC in circulation is held by whales.
NOTE: This warning note is to inform you of the risks associated with investing in Bitcoin or other cryptocurrencies that are owned by whales. It is important to be aware that these whales may have significant influence on the market and can cause price volatility. Additionally, it is important to understand that large holders of Bitcoin can also manipulate prices for their own benefit and potentially create a situation where smaller investors are unable to compete. Therefore, if you decide to invest in Bitcoin, it is important to do your research and be aware of the potential risks involved.
While the concentration of wealth in Bitcoin is often criticized, it’s important to remember that many of these whales are early investors who bought BTC when it was worth very little. They are also likely to be holding onto their Bitcoin for long-term investment purposes and are less likely to sell, even if the price does drop in the short-term.
Still, the findings highlight just how much power these whales have over the market. They could potentially manipulate prices by selling large amounts of BTC at once, although there is no evidence that this has ever happened.
The report also found that the top 100 Bitcoin addresses hold around 5% of all BTC in circulation. Just 1,000 addresses hold around 12%.
So while the majority of Bitcoin is owned by a relatively small number of investors, it’s still a far more decentralized currency than fiat currencies like the US dollar or Euro.
4 Related Question Answers Found
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.
When it comes to Bitcoin, the term “whale” is used to describe an investor who holds a large amount of the cryptocurrency. These individuals can have a significant impact on the market due to their ability to buy or sell large amounts of Bitcoin at a time. There are a few different ways to identify a whale in the Bitcoin world.
The term “whale” is used to describe an investor who holds a large amount of a particular asset. In the cryptocurrency world, a whale is someone who owns a large amount of Bitcoin. Bitcoin whales are thought to be responsible for some of the large swings in price that we see in the market.
A Bitcoin whale is a term used to describe an individual or group that holds a large amount of the cryptocurrency, typically in excess of 10,000 BTC. While the actual definition of a whale can vary, they are generally considered to be one of the most influential players in the Bitcoin market. Whales have a significant impact on the market due to their ability to buy or sell large amounts of Bitcoin without significantly affecting the price.
