This year has been a turning point for adoption of Bitcoin. A few sportsmen and public officials now accept Bitcoin as payment, El Salvador has decided to make it legal currency, and 3 Bitcoin futures ETFs trade on Chicago Board Options Exchange. Nonetheless, the overwhelming bulk of volume, roughly 75%, is transferred through one exchange to the other, and a tiny amount of ‘rich’ wallets regulate more than a fraction of the total supply, as per a report by the NBER.
The report is really not brand new. It is a recent paper that’s been published on the National Bureau of Economic Research webpage in October and is based on information gathered through the month of June. However, the Wall Street Journal stated today that 0.01 percent of Bitcoin users regulate 27 percent of currency in the system.
As per Igor Makarov from the London School of Economics & Antoinette Schoar from MIT’s Sloan School of Management, the top thousand investors hold approximately 3 million, or 16 percent, of all flowing Bitcoin, as well as the top ten thousand investors hold approximately 5 million, or 27 percent. As per Glassnode, there have been approximately 18.7M Bitcoin in circulation as well as 787,000 effective wallet addresses at the moment the investigators gathered their info in June. In comparison, there are currently 18.9M Bitcoin in circulation & 733,000 effective addresses.
The price of Bitcoin, which was 34,493.20 dollars in the month of June, had also risen by around 13,000 dollars to 47,222.70 dollars. However, it is worth noting that the investigators were using cluster analysis to distinguish between domain names governed by the very same entity, such as transactions and addresses governed by investors.
If the statistics involved wallets governed by large corporations, the 0.01 percent figure would’ve been larger. However, the evident accumulation of wealth has not dampened investor confidence in the next major milestone in blockchain.
As per transaction data analysed by PitchBook, 30 billion dollars in venture funding has been started pouring in digital asset, Web3, blockchain and metaverse start up companies in the year and.