Bitcoin Being Controlled By the One Percent

Larry Lease
Bitcoin is being controlled by the one percent.Executium/Unsplash

A new study has revealed that 27 percent of Bitcoin is being controlled by just 1 percent of all holders. According to the National Bureau of Economic Research has found that 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.

While Bitcoin has been around for more than a decade and as the hype continues to grow, it's still a very tight ecosystem. According to the Wall Street Journal, the top 1 percent of all households in the U.S. hold a third of all weath. Approximately 114 million individuals holds Bitcoin globally, but one-third of the value is held by the one percent. Bitcoin and other digital currencies have been at the center of many of this year's craziest financial gains and losses.

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 eco-system is being dominated by miners, holders and exchangers. CBS News says the creation of Bitcoin will be capped algorithmically at 21 million. Currently there is nearly 19 million Bitcoins in circulation and creation of new coins slows as time goes on.

Butcoin surged over the years but has since dropped off its record highs. 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 concerns 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 between January and July, crypto accounted for $681 million in scam losses. Forbes has reported that the Winklevoss twins became billionaires from investing in bitcoin.

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I specialize in crime, entertainment and political stories. I have spent eight years as a freelance writer and journalist.

Dallas, TX

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