Surprise! One-Third of All Bitcoin Is Owned by 10,000 Individuals

A new study has revealed that nearly half of all Bitcoins, the digital currency decentralized by Elon Musk is owned by just a few people despite its popularity. This was according to a report from Bloomberg.

It was also revealed that Bitcoin mining has a high concentration by a small percentage of all miners. This could potentially leave the market vulnerable to colluding miners.

According to the National Bureau of Economic Research, approximately one third of all Bitcoins in circulation is owned by the top 10,000 investors. NBER researchers used data collection methods that distinguished individuals and organizations to help them organize and sort difficult-to-track crypto addresses. The researchers found that approximately 8.5 million Bitcoin is owned by individuals and that at least three million of the cryptocurrency’s top 1,000 investors own it.

Researchers Igor Makarov, Antoinette Schor and others believe that this measurement of concentration is an exaggeration. We cannot rule out the possibility that some of the most important addresses are controlled or managed by the same entity. Satoshi Nakamoto was the creator of Bitcoin. He held Bitcoins at around 20,000 addresses. This made them appear to belong to 20,000 people.

A 51 percent attack on Bitcoin could result in the loss of bitcoin

Researchers also found that 90 percent of the global Bitcoin mining capacity is owned by the top 10 percent. Only 0.1 percent of miners own 50 percent of the mining capacity.

The new study shows that this high concentration makes the Bitcoin network vulnerable to a 51 per cent attack. This is where miners work together to control the majority of Bitcoin and hold it hostage.

The researchers stated that, despite all the attention Bitcoin has received in recent years, the Bitcoin ecosystem remains dominated by large and concentrated players. These could be large miners, Bitcoin holders or exchanges. This inherent concentration makes Bitcoin vulnerable to systemic risks and means that most of the benefits from further adoption will likely fall to a small number of participants.

Bitcoin hit a new record of $65,000 this month shortly after it entered the New York Stock Exchange on October 19. This year, the cryptocurrency saw a huge rise in popularity due to a prominent $1.5 Billion investment by EV automaker Tesla and endorsements by its CEO Elon Musk.

To bypass the need to have a central regulatory body, the digital currency is processed through the blockchain. The NBER’s latest study shows that Bitcoin is not as decentralized as the label suggests.

Bitcoin’s Biggest Jump Since July Leaves Traders Speculating Why

Bitcoin surged, climbing in minutes to its largest daily gain since July. Other digital currencies also rose in shock rallies that followed the biggest monthly drop since May.

Before paring gains, the largest cryptocurrency in terms of market value rose by 10% to $47.884 in New York trading early. EOS, Litecoin, and Ethereum all saw a jump, with the Bloomberg Galaxy Crypto Index increasing as high as 8.9%. Concern about rising regulatory pressures in China and the U.S. had caused Bitcoin to plummet 7.6% in September.

While traders offered many possible explanations for the gains they pointed out that digital assets are vulnerable to price swings due to the fractionalized market making them more volatile than the rest. Some traders cited Thursday’s remarks by Jerome Powell, Federal Reserve Chair, that the central bank had “no intention” to ban cryptocurrency. Others cited price levels like moving averages which are closely monitored by technical analysts.

“Markets have been trading sideways over a lack regulatory clarity and statements by U.S. authorities indicating that they were seeking significantly to curtail crypto activity,” stated Leah Wald (chief executive at Valkyrie Investments, crypto asset manager). This, along with the weakness in the stock markets and October being a traditionally bullish month for crypto markets, could indicate a shift towards risk-on trading within crypto markets over the next few weeks as investors seek returns from non-traditional assets.

As Bitcoin surged, crypto-related stocks like Marathon Digital Holdings Inc., Riot Blockchain Inc., and Bit Digital Inc. also gained Friday.

In a Thursday hearing before Congress, Powell stated that he has no intention to ban cryptocurrency. Powell did however mention that regulation of stablecoins may be necessary.

Stuart Alderoty (general counsel at Ripple Labs) tweeted that a press release claiming the company had settled a lawsuit against the U.S. Securities and Exchange Commission, was false. The XRP token, which is the subject of the lawsuit, jumped up to 13% before paring losses.

Although Bitcoin fell in September, it posted a 25% gain for the third quarter. This compares to a 41% drop in the previous three months.

Charts were used by technicians to find clues about where Bitcoin might go next. Antoni Trenchev (Managing Partner and Co-Founder of Nexo, a Crypto lender) said that he was encouraged by the quick move that took Bitcoin over its 20-50 and 200-day moving averages in a single pass.

Earlier: Bitcoin rises as technicians investigate whether rally is sustainable

The MACD gauge, or moving average convergence divergence, has also turned positive, which confirms the upward shift in sentiment.

Trenchev said, however, that ‘be careful, sudden accelerating prices can hastily unwind.

Federal Reserve Chair Jerome Powell: U.S. Has No Plans To Ban Bitcoin and Crypto

Jerome Powell, Chairman of the Federal Reserve, has confirmed that the U.S. does not intend to ban Bitcoin or cryptocurrencies.

Thursday afternoon, during the Oversight and Federal Reserve’s Pandemic Response hearing Jerome Powell, Chairman of the Federal Reserve, confirmed that the U.S. does not intend to ban Bitcoin or cryptocurrencies.

The hearing was attended by Ted Budd, a Republican from North Carolina. He questioned Powell about the current state of American inflation. Powell evaded the inflation questions by claiming that the reason for the current inflation in the United States is the repeated supply chain crises triggered by the Government’s pandemic response.

The chairman effectively stated that the Fed has no control over inflation and that it will get relief. Powell suggested that inflation should fall in the first half next year.

Ted Budd then referenced Powell’s comments about central bank digital currencies, their impact on Bitcoin and other cryptocurrencies, and his previous comments. Budd quoted Jerome Powell’s July hearing, “You wouldn’t require stable coins, but you wouldn’t have cryptocurrencies if there was a digital U.S. currency.

Budd said, “So Mr. Chairman, is it your intention ban or limit cryptocurrency use like we’re seeing here in China?”

Jerome Powell answered “No” and continued to explain why he had misspoken at that time.

Budd rephrased his question: “But you don’t intend to ban them?”

Powell replied, “No intention to ban them,” and he explained that stable coins should be included in the regulatory framework.

Many Bitcoiners find such exchanges in Congress frustrating because the Fed’s knowledge of Bitcoin and cryptocurrencies is lacking.

We can assume that Chairman Powell was talking about Bitcoin because of the constant grouping of Bitcoin and other crypto currencies by members of Congress and the Fed.

The regulatory perspective is that Bitcoiners and politicians still have a lot to do to accurately represent their interests and make informed decisions about whether or not to regulate Bitcoin.

In any event, the United States’ regulation Bitcoin is still an embrace for the technology. This approach, from a geopolitical standpoint, could not be more different than China’s. America’s loss is China’s gain.

‘Single bitcoin transaction creates same e-waste as that of two iPhones binned’

One bitcoin transaction produces on average the same amount of electronic waste than two iPhones 12 minis thrown in the trash.

This is the suggestion of Alex de Vries, a Dutch economist who spoke to ELN regarding the new research he coauthored on the carbon footprint associated with cryptocurrency mining.

“You must realize that the machines used for this type of mining are extremely specialized machines. They use application-specific integrated circuit chip chips. This means that bitcoin mining machines can only perform one task.

He said that people continue to develop new versions of these machines over time and that they are encouraged to do so because electricity is their largest cost component. ‘Because new generations of these machine are continually coming out, it also means that all generations become obsolete very quickly.

The study was published in the journal Resources, Conservation and Recycling. It suggests that bitcoin mining devices have a limited lifespan of just 1.29 years.

According to the findings, bitcoin transactions processed 112.5 million transactions in 2020. That’s approximately 272 grams of ewaste per transaction.

According to Mr de Vries, “You have this rate-race of miners continually trying to create new and better equipment at the expense all the generations that end in the trash.”

Sweden’s banking chief dismisses Bitcoin as ‘stamp trading’

Stefan Ingves (the governor of Sweden’s central banks) has not given Bitcoin much thought.

Ingves stated that private money often collapses sooner than expected at a Stockholm banking conference. Ingves said that trading in Bitcoin was a way to make money, but it is not as easy as trading in stamps.

Ingves, the governor of Sveriges Riksbank, recently stated that Bitcoin and other cryptocurrency are unlikely to be exempted from regulatory oversight as they grow in popularity.

Wael Makarem is a senior market strategist at Swedish trading broker Exness and believes that the Scandinavian nation views cryptocurrency’s volatility with trepidation.

He stated that investors are concerned about current volatility in Bitcoin and Ethereum. This is especially because these benchmarks have not been able to reduce losses in the past, which is often considered a sign weakness in the crypto market.

“On the other side, headlines about EU regulators moving closer to implementing new regulations regarding cryptocurrencies, anti-money laundering rules, and tax reporting requirements adds downward pressure.

Makarem said that investors are also afraid of strict rules and regulations that could restrict the adoption or use digital assets.

Europe is still skeptical about crypto

Ingves’s remarks are generally in line what other central banks have said about cryptocurrency. Gabriel Makhlouf, governor of the Central Bank of Ireland, stated that Bitcoin investors should be ready to lose all of their money in February.

He said, “Personally, I wouldn’t put my cash into it, but clearly some people think it’s a good investment.”

“People invest money in tulips to make an investment.”

Andrew Bailey, the Bank of England Governor, stated that cryptocurrency had no intrinsic value, and could crash to zero.