Is it True That 95% of Bitcoin is controlled by just 2.4% of the accounts?


Short Answer: no

Long Answer: read along.

A recent report by Bloomberg states that “2% of accounts control 95% of all Bitcoin”. Bitinfocharts shows a similar distribution of BTC across addresses. And others have reported comparable statistics suggesting a vast concentration of wealth in the Bitcoin network.

The problem with these reports is that they analyze the distribution of BTC across network addresses. This leads to misleading statistics, which result in false narratives around BTC ownership among stakeholders.

In particular, this approach has two major caveats:

Not all Bitcoin addresses should be treated equal. For instance, an exchange address holding the funds from millions of users needs to be distinguished from an individual’s self-custody address.
A Bitcoin address is not an “account”. One user can control multiple addresses, and one address can hold the funds from multiple users.

On the large end of the spectrum whales and humpbacks are the biggest non-exchange entities that together control around 31% of the Bitcoin supply. These are most likely institutions, funds, custodians, OTC desks, and other high net worth individuals.

On the other hand, smaller entities holding up 50 BTC each (shrimp, crab, and octopus) control almost 23% of the supply. This shows that a substantial amount of bitcoins are in the hands of retail investors.

Do you know why it’s not concerning? Because it’s not true. most of those wallets are exchanges so they represent thousands of entities in those wallets.

Also even if you had a “fair distribution” like 95% of the wallets controlling 95% of the coins – you wouldn’t know. whales don’t just have one wallet they have dozens of wallets that they spread their stash over.

One more thing, Exchanges are a big part of that “centralization”

Also, 1% of fiat account holds 99% of fiat value, and that’s not because of centralized exchanges this time…

This is just (another) ridiculous article made by (another) stupid journalist of (another) biased media

Again, the number of wallets does not equal number of individuals.

So. no, it is not true that 95% of Bitcoin is controlled by just 2.4% of the accounts.

Free Crypto Passive Income


Please enter your comment!
Please enter your name here