Bitcoin-whales control market share at $ 37.5 billion
According to Chainalysis, a well-known company on the analysis of crypto currency, more than a third of all bitcoin coins are located in only 1’600 wallets.
This, of course, was not news for the crypto currency community, there is even a term – many call these users “whales”. Of the above 1’600 purses, each contains more than 1’000 bitcoins, 100 of which contain more than 10’000 bitcoins. At current market prices, 10’000 bitcoins cost about $ 75 million, which is by no means an indicator for mockery.
Chief economist Chainalysis Philippe Gladwell said: This concentration of wealth means that bitcoin is prone to volatility, since the movement of a small number of people will have a large price effect.
This became a serious concern, since when the guarantor of the infamous Mt.Gox through the auction was selling thousands of bitcoins, this further fueled the short-term bearish trend prevailing in the market.
Despite these concerns, further analysis showed that some of these “whales” did not move their stocks for many years. The presence of these wallets prompted the crypto community to reason that some of them belong to particularly unfortunate people who have lost access to their valuable assets. Some say that Satoshi suffered the same fate, and his wallets, total contain more than a million potentially lost bitcoins.
In addition, according to an analysis conducted by Chainalysis, the number of bitcoins held by long-term investors is decreasing compared to the number of bitcoins held by short-term investors. This means that there has been a shift in the dynamics of power, and the market power of the short-term speculators market is growing.
Despite some conviction that this is a promising sign, there are fears that short-term investors are buying bitcoin just because of the potential for a change in its price. Bitcoin is not the only coin experiencing such a problem.
Skeptics of the decentralized character of the crypto currency began to criticize a lot of different projects for having similar conditions: large sums in their purses. According to an analysis made by users of Reddit, 10 EOS purses contain almost half of all EOS coins. However, it is important to note that some of these addresses are most likely owned by exchanges, which reduces the risk of a centralization problem. However, further analysis showed that 75 EOS holders hold coins worth more than $ 10 million and a low probability that all are stock exchanges.
This has become the subject of controversy in the community, and some critics have stated that Block.one’s attempts to mitigate this form of centralization are ineffective. While it is not clear how much this issue applies to EOS, but we will soon see. The popular altcoyin, Litecoin, also had problems in this vein – 400 purses, contained more than 50% of all coins in circulation.
Nevertheless, many analysts believe that when acceptance in this industry grows, all crypto-currencies spread evenly throughout the number of purses. But until this happens, many will continue to worry about these so-called “whales” manipulating the market.