About 1% of bitcoin (BTC) holders control more than a quarter of all cryptocurrency, according to a new study. The National Bureau of Economic Research, an American private nonprofit research organization, released a document claiming that 10,000 crypto investors, or 0.01% of all BTC holders, own 5 million BTC, or 27% of all cryptocurrency.
The number of bitcoins owned by 1% of investors is approximately $232 billion. The researchers’ findings suggest that bitcoin is not as decentralized as commonly thought. “Although bitcoin has been around for 14 years, it is still a very concentrated ecosystem,” the researchers noted.
The new report could be alarming for the cryptocurrency community, as bitcoin’s main proponents promote decentralization as one of the main principles of the network.
Anonymous activates ‘forgotten’ cryptocurrency wallet that went from $4 million to $3 million in 11 years
According to Quantum Economics founder Mati Greenspan, the majority of bitcoin circulation is controlled by Satoshi Nakamoto, the creator of the cryptocurrency. “His coins alone account for more than 5% of the total volume,” Greenspan noted. He added that over time, bitcoin ownership should have become more distributed, but so far that’s not the case.
The researchers also noted that some bitcoins are not controlled by anyone and are left in forgotten wallets. According to crypto insurance company Coincover, about 4 million bitcoins are out of circulation due to loss of access.
Read also
Very strange universe: phenomena and objects in space that are difficult to imagine
Scientists have put forward a new theory for the origin of black holes
Study from China: omicron strain bypasses protection against vaccination and COVID-19 carried
