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Bitcoin has its own 1% who control outsized share of wealth

Cryptocurrencies are essentially advertised as a new form of digital money that is not tied to government or central banks. No prejudice When Uneven distribution..But lately study According to the National Bureau of Economic Research, Bitcoin has developed its own group of one-per-centers that are likely to enjoy most of their profits in the coming years.

According to a NBER survey, the top 10,000 Bitcoin investors own a total of 5 million Bitcoins, or about $ 230 billion at recent prices. These numbers mean that even if Bitcoin was launched in 2009, “participation in Bitcoin is very biased towards a few top players even at the end of 2020.”

These top players make up only 0.01% of all Bitcoin holders, but control 27% of digital currencies.The Wall Street Journal report.. This is compared to the old-fashioned dollar, where the top 1% dominated 30% of US household wealth, according to the Federal Reserve. data..

In their study, Makarov and Schoar found that Bitcoin has “significant skewness in ownership” and that “most of the benefits of further hiring are likely to be disproportionate to a small number of participants. Means. ”

Bitcoin and other digital currencies are at the heart of many of the biggest financial gains and losses of the year.Most financial experts consider it a very volatile form of money, but Bitcoin Reached a new higHs earlier this year, Partly because more companies are accepting it as a payment method.


What does wealth inequality look like?

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WhatsApp, a messaging service, began piloting a new feature this month stating that US users can use cryptocurrencies to send money without paying fees. The new payment service is another example of how digital currencies are becoming accepted. US mainstream financial scene..

As its popularity grows, digital currencies have been the target of millions of dollars of scams in recent history. Cryptocurrency intelligence company CipherTrace reported that between January and July, cryptocurrencies accounted for $ 681 million in fraudulent losses.

Despite the growing popularity of crypto, relatively few people own large chunks of Bitcoin, and digital currencies are much more vulnerable to large weekly price fluctuations, Makarov said. Said Shoal in their study. Makarov and Schoar collected data when about 15 million Bitcoins were in circulation from the start of Bitcoin 13 years ago to the end of 2020. According to Blockchain.com, there are 19 million Bitcoins currently in circulation. data..Maximum number of Bitcoin So far, there can be 21 million.

The survey does not reveal the name of the person who owns the most Bitcoins.

Still, the work of Makarov and Schoar adds credibility to the list of investors floating around the internet with the best cryptocurrencies. Matthew Roszak, chairman of blockchain company Blok, has a crypto portfolio worth more than $ 1.5 billion, Forbes report During April.Winkle Boss Twins Cameron and Tyler are also reportedly becoming millionaires from their investment in Bitcoin...

“Our results show that even though Bitcoin has received a lot of attention over the past few years, the Bitcoin ecosystem is still large, with large miners, Bitcoin owners, exchanges, etc. It suggests that it is dominated by intensive players in, “concludes Makarov and Shoal.

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