27% of the bitcoin supply is in the domain of ten thousand whale bags

Charlie Taylor

2022 was a big year for bitcoin (BTC) membership. A group of athletes and politicians now accept part of their salary in bitcoin, El Salvador has turned it into currency, and there are three bitcoin futures index (or ETF) funds trading on the [… ]

The post 27% of bitcoin supply is under the domain of ten thousand whale wallets first appeared on Bitcoin Portal .

2022 was a big year for bitcoin (BTC) membership.

A group of athletes and politicians now accept part of their salary in bitcoin, El Salvador has made it into currency, and there are three bitcoin futures index (or ETF) funds trading on the Chicago Options Exchange ( or CBOE).

Still, a large part of the volume (about 75%) is moved from one broker to another, and a very small number of “rich” portfolios control more than ¼ of the supply in circulation, according to a report by the National Department of Economic Research (or NBER).

The report is not necessarily new. It is a working tool published on the NBER website in October using data collected up to the end of June.

But his findings were evidenced on Monday (20) when the Wall Street Journal reported that "0.01% of bitcoin holders control 27% of the currency in circulation".

The top 1,000 investors control about three million (or 16%) of all bitcoin in circulation, and the top 10,000 investors own about five million (or 27%) bitcoins, according to authors Igor Makarov of the London School of Economics, and Antoinette Schoar of the Sloan School of Management at the Massachusetts Institute of Technology (or MIT).

By June, when researchers had compiled the data, there were about 18.7 million bitcoins in circulation and 787,000 active wallet addresses, according to Glassnode. For comparison purposes, there are now 18.9 million bitcoins in circulation and 733 active addresses.

And the price of bitcoin, which was $34,493.20 in June, has risen about $14,000 and is priced at $48,900 right now.

But it is important to note that the researchers used data clustering (or “clustering”) algorithms to separate addresses controlled by the same entity, such as brokers or hedge funds, from addresses controlled by individual investors.

If the data included portfolios controlled by large companies (such as Coinbase ), this percentage of 0.01% would be higher.

“Our data cover 1,043 different entities,” state the authors. “They include 393 brokers, 86 gambling sites, 39 online wallets, 33 payment processors, 63 mining pools, 35 scammers , 227 ransomware attackers, 151 dark net markets and illegal services.”

But the apparent concentration of wealth hasn't daunted the interest of investors looking to bet on the next big blockchain trend.

This year, $30 billion of venture capital was allocated to cryptoactive, blockchain, Web 3 and metaverse startups, according to data analyzed by PitchBook.

“We've gone beyond digital gold,” Spencer Bogart, general partner at Blockchain Capital, told Bloomberg .

“We have financial services, art, games as a subcategory of NFTs, Web 3.0, decentralized social media, play-to-earn… It all made investors think, 'We don't have enough exposure.'

*Translated and edited by Daniela Pereira do Nascimento with permission from Decrypt.co .

The post 27% of bitcoin supply is under the domain of ten thousand whale wallets first appeared on Bitcoin Portal .

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