Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6878748086802378753
#Bitcoin’s ‘One Percent’ #Control Lion’s Share of the #Cryptocurrency’s #Wealth: Just 0.01% of #bitcoin #holders controls 27% of the #currency in #circulation: The Wall Street Journal: https://lnkd.in/dcVN2sxb :
re: #DeFI #Crypto #BlockChain: #Public #Good or #Pyramid #Gambling #Schemes? https://lnkd.in/dyTw33b8
re: #DeFi = #Decentralization #Illusion https://lnkd.in/dzNw5s8E
It’s good to be the bitcoin 1%. The top #bitcoin #holders #control a greater share of the cryptocurrency than the most affluent American households control in #dollars, according to a study by the National Bureau of Economic Research. The study showed that the top 10,000 bitcoin accounts hold 5 million #bitcoins, an equivalent of approximately $232 #billion.
With an estimated 114 #million people globally holding the cryptocurrency, according to crypto.com, that means that approximately 0.01% of #bitcoin #holders #control 27% of the 19 million bitcoin in #circulation.
By comparison, in the U.S., where #wealth #inequality is at its #most #extreme in decades, the top 1% of households hold about a third of all wealth, according to the Federal Reserve.
#Systemic #Risks & #Concentrated #Control – #Profits
The ramifications of that #centralization are mainly twofold, the paper argues. First, it makes the entire #bitcoin #network more susceptible to #systemic #risk. Second, it means the #majority of the #gains from the rising price and increased adoption go to a disproportionately #small #group of #investors.
#Whales #Hype [ #Control #Manipulate ] #Bitcoin
“Despite having been around for 14 years and the #hype it has ratcheted up, it’s still the case that it’s a very #concentrated #ecosystem.
#Bitcoin #Decentralization #Myth
In practice, though, bitcoin has become #highly #centralized. Most people who trade do so through #exchanges. The #costs of #mining have become so high that only a small group of #enterprise-level firms can afford to do it.
#Not #Currency #Nor #Asset?
#Gambling #Speculation #Tulipmania?
The #wealth of #bitcoin #miners and #exchanges has skyrocketed over the past two years as the #price of a single bitcoin jumped from $5,000 in March 2020 to as high as $68,990 last month.
No #Economic #Utility: https://lnkd.in/dWp4wHTt
Yet the vast majority of #bitcoin #transactions, about 90%, are derived from two activities that have #no actual #economic #function.
#Anonymous #Fraud #MoneyLaundering
First activity is simply the way the #network #processes #bitcoin #transactions— the equivalent of making change for a $20 when you buy coffee. Second are #transactions sent between #wallets by the same user trying to #obfuscate their #identity, a common tactic for those seeking #anonymity.
#Minority of #Transactions in #Trading
Of the remaining 10% of #volume, #realvolume, #trading dominates. Transactions between #exchanges and #tradingdesks comprised roughly 75% of total volume.
AIMLExchange.com – BRINT.com – C4I-Cyber.com
