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Retail holds 14% of supply
One of the most common criticisms of Bitcoin’s fear, uncertainty, and suspicion (FUD) is that the majority of its supply is in the hands of a small number of people. Like all financial systems or asset classes that exist today, there are some truths about that type of distribution, but in the case of Bitcoin it is almost always exaggerated.
The supply share of Bitcoin held by estimated retail individuals is increasing the share of the network every year. It’s one of the only assets in the world available to anyone with an internet connection and a smartphone, and the friction of adoption by the average individual is very low.
Many critics cite the following address charts: This one And we call it the truth.The truth is that tracking supply distributions between addresses has very subtle differences, and Glassnode A suite of heuristic and clustering algorithms Estimate an entity rather than an address on the network.
Here’s what Glassnode found in an analysis a year ago:
“We can see that about 2% of network entities control 71.5% of all Bitcoins. This number is significantly different from the frequently propagated” controlling 95% of supply by 2% “. Please note in particular.
And that 71.5% was the upper limit. In other words, it was an estimated value with a high supply distribution concentration. There are many reasons why retail share can grow due to Bitcoin with custodians, exchange supplies, lost coins, and conservative methodologies for identifying entities.
A closer look at today’s entity supply distribution data reveals a clear trend for retail (less than 10 BTC entities) circular supply share to increase from 1.51% in 2012 to an average of 13.90% in 2022. The growth of the largest share of supply comes from the entities holding 1-10 BTC and 0.1-1 BTC.
Final note
The data contributes to the case where Bitcoin is money designed and accessible for the average global individual. Institutional and institutional investors entering the network are the next major price catalysts and can impact supply shares, but retailers can acquire and store Bitcoin to anyone in the world. Network share continues to rise.
This was once the first case study where retailers and individuals had access to assets and financial wealth in front of financial institutions.
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