Top 10,000 Bitcoin investors control one-third of the supply

important point

  • Bitcoin is a decentralized asset, but large amounts of Bitcoin are controlled by a select few
  • The top 114 addresses have around 3 million BTC, or 15.5% of the total supply.
  • Anonymous Satoshi Nakamoto holds 5.2% of the supply
  • MicroStrategy will hold 0.68% of the supply

Whether you love Bitcoin or hate it, the world’s first cryptocurrency isDistributed” into modern language.

But while Bitcoin is the closest thing to a decentralized asset, it’s worth noting that it has a pressure point. In some cases, if these coins hit the market at once, it would be enough to cause serious disruption.

Satoshi Nakamoto

The most obvious of the big holders is the anonymous founder Satoshi Nakamoto. Both individuals and groups have held about 1 million bitcoins since the early days of Nakamoto. This represents about 5.2% of total supply, which is a very large number.

No one knows who Nakamoto is, but having this amount of coins in the hands of one person/entity is certainly dangerous.

Coinbase listed this factor as a risk to its business in its S-1 form when it went public in April 2021. “Satoshi Nakamoto, the identity of the pseudonymous person who developed Bitcoin, or the transfer of Satoshi’s Bitcoin” As a risk to Bitcoin, and thus to Coinbase’s business.

Guessing Nakamoto’s identity is a silly game, and these coins could easily be lost forever, but it’s easy to see that Coinbase listed this as a risk in their filing. In reality, one entity or individual holds his 5.2% of the supply, and we don’t know who it is.

bitcoin whale

Besides Nakamoto, there are many wallets with lots of study The top 10,000 Bitcoin investors control a third of the total supply, according to the National Bureau of Economic Research.

The numbers are estimates andIt may be an understatement, as we cannot rule out the possibility that some of the largest addresses are managed by the same entity. ” According to research. For example, the aforementioned 5.2% of the coins managed by Nakamoto are not included because we do not know if Nakamoto is an individual.

Given that Bitcoin generated a compound annual return equivalent to 230% from 2011 to 2021, outperforming all major financial asset classes in the world, a small group of early adopters could generate a significant amount of supply. It’s probably not surprising that you’re in control.

A $2,000 investment in 2010 gave you 10,000 Bitcoins, now worth over $26 million. A select few who joined in the early days and are retained in the stash today hold a sizeable supply.

Currently there are only 114 addresses containing more than 10,000 BTC (exchange addresses could be part of it) and these 114 addresses contain around 3 million BTC, or 15.5% of the total supply. I’m here.

The table below shows how much bitcoin is locked in a small number of top addresses.

Entities holding large amounts of Bitcoin

There are also entities that branch off from individuals and hold large amounts of bitcoin.

The first that comes to mind is Michael Saylor and MicroStrategy, who own 130,000 Bitcoins, or 0.68% of the total supply. This is the largest by any public company, and some fear that the price of Bitcoin will drop if it hits the market.

MicroStrategy is the public company with the most bitcoins, while, the privately held Chinese company that created the EOS cryptocurrency, owns 140,000 bitcoins. This would be the largest known holding by one company.

final thoughts

It is true that Bitcoin’s unique fundamentals are its own decentralized asset. The way the Proof of Work mechanism works and the fact that Insiders didn’t start with a coin (even Nakamoto had to mine its stash) helped achieve this decentralized quality.

However, despite this decentralization, there are still some large holders holding enough coins to shake the market, at least in the short term, and what will lead to these coins hitting the market. It happens when something happens.

The scale of Bitcoin’s rise is so staggering that some of the early casual folk who bought it with pennies now own monster stacks worth millions of dollars. Is Satoshi Nakamoto’s net worth in November 2021 the highest ever in Bitcoin history? A cool $70 billionth richest person in the world.

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