A new study has revealed that 27 percent of Bitcoin is being controlled by just ONE percent of all holders. According to the National Bureau of Economic Research, the top 10,000 Bitcoin accounts hold 5 million Bitcoins, with a value of nearly $232 billion. They say this concentration could cause a price collapse if everyone sold their holdings at once.
Bitcoin has been at the center of many financial gains and losses
While Bitcoin has been around for more than a decade and as the hype continues to grow, it’s still a very tight ecosystem.
Bitcoin and other digital currencies have been at the center of many of this year’s craziest financial gains and losses. According to the Wall Street Journal, the top 1 percent of all households in the U.S. hold one-third of all wealth. Approximately 114 million individuals hold Bitcoin globally, but one-third of the value is held by one percent.
— Seb (@SebRo01) December 22, 2021
Anyone used to be able to process transactions back in the day, but now it has become increasingly specialized, requiring massive computer power. The Bitcoin ecosystem is being dominated by miners, holders, and exchangers.
CBS News says the creation of Bitcoin will be capped algorithmically at 21 million. Currently, there are nearly 19 million Bitcoins in circulation, and the creation of new coins slows as time goes on.
The currency continues to be a target of major scams
The digital currency surged over the years but has since dropped off its record highs. The majority of bitcoin transactions come from two activities: network processing bitcoin transactions and the second transactions sent between wallets, in comparison scams, gambling sites, and other illegal activities, which rightfully concern law enforcement and government comprised less than 3%.
As the popularity of digital currencies continues to grow, they continue to be targets of scams. CipherTrace reports that crypto accounted for $681 million in scam losses between January and July. Forbes has reported that the Winklevoss twins became billionaires from investing in bitcoin.