Distrust in fiat currency, controlled by a state, was one of the principal motivations in designing of the Bitcoin protocol. It was designed to be a decentralized system of creation of new money by a transparent computational algorithm. Any person participating in the currency’s ecosystem can run this algorithm on a computer and generate new money. It is supposed to be a currency created by the people for the people and therefore a currency of the people. It is a currency of future when true democracy will prevail. here here here here here
But what is the reality? Who owns the bulk of these virtual currencies? To get an answer to this question, I looked into data about the distribution of these currencies amongst the participants in this technology game. The result of this exercise is truly revealing.
Data: We have collected data from the website https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html which gives “Rich List” of some selected 9 currencies. We collected data as on 11th April, 2018. The market cap of these 9 currencies was 58.8 per cent of total market capitalization in terms of US dollar on that date. On the data date, the total market capitalization of virtual currencies (excluding tokens) was 261 billion US dollar. So one can say collected data is adequately representative of the virtual currency ecosystem. The website has grouped data by value of coins held against each address. An address having , say 0.001 bitcoin (BTC), would be grouped in the bucket “0 to 1 BTC” bucket. For some cryptocurrencies , the number of coins held in an address may be very large as their market value is much smaller as compared to that of Bitcoin. So the number of class intervals for coins held would be higher than a highly valued cryptocurrency like Bitcoin. To keep the results compact we have collapsed crypto wise class intervals into a common 3 classes. The following table gives a summary of distribution of value in US dollar and number of addresses across these class intervals.
Table 1: The distribution of addresses in terms of value of coin held and number of addresses for various class intervals of value of coins for each address.
| Coin Name | Market Cap
$Billion |
Share of each group of addresses below in total number of addresses | Share of each group of addresses in total market value of outstanding coin in USD | Average
Balance (USD) per address |
||||
| <=1 full Coin per address | 1 -100 coins per address | More than 100 coin | less than or equal to1Coin | 1-100 coins per address | > 100 coins | |||
| Bitcoin | 130.3 | 4.06% | 34.29% | 61.7% | 96.8% | 3.1% | 0.1% | 5991 |
| Bitoin cash | 12.1 | 2.5% | 27.6% | 69.9% | 97.1 | 2.8 | 0.1 | 737 |
| Litecoin | 6.8 | 0.4% | 13.8% | 96.7% | 71.5% | 27.1% | 1.4% | 2721 |
| Dash | 2.7 | 0.7% | 9.4% | 89.9% | 82.0% | 16.9% | 1.2% | 4094 |
| Bitcoin Gold | 0.8 | 2.9% | 30.1% | 67.0% | 97.2% | 2.7% | 0.1% | 38 |
| Dodgecoin | 0.4 | 0.0% | 0.0% | 100.0% | 16.5% | 42.2% | 41.3% | 183 |
| ReddCoin | 0.1 | 0.0% | 0.0% | 100.0% | 14.8% | 18.9% | 66.3% | 1317 |
| Verticoin | 0.1 | 0.0% | 3.3% | 96.7% | 38.1% | 47.1% | 14.8% | 715 |
| Peercoin | 0.0 | 0.0% | 1.3% | 98.7% | 56.4% | 32.0% | 11.6% | 934 |
It is obvious from the above table that only few addresses, each having more than 100 coins per address account for the bulk of total market capitalization of each currency. Bitcoin which the highest market capitalization of all circulating coins is also concentrated in a small number of addresses. The table 2 below clearly indicates how a few big market players have completely taken over each currency market.
The US tax authorities as well as Commodity Future Trading Commission have designated as “commodity” and not currency. From that perspective, this commodity market is highly monopolistic and susceptible to market manipulation by few large traders. It is high time that anti-trust authorities in the developed economies wake up to this reality and take appropriate actions in the interest of average participant in these markets.
Table 2: The number of addresses and value held by top bracket by number of coins held per address
| Coin Name | Number of addresses in the highest bracket | Market value of coins held by addresses in the top bracket (million USD) | Share of these addresses in outstanding market value of the respective Coin |
| Bitcoin | 3 | 3292 | 2.50% |
| Bitcoin Cash | 7 | 954 | 7.86% |
| Litecoin | 66 | 2776 | 40.67% |
| Dash | 34 | 241 | 8.77% |
| Bitcoin Gold | 12 | 93 | 12.38% |
| Dodgecoin | 16 | 129 | 31.91% |
| Reddcoin | 3 | 32 | 21.71% |
| Vertcoin | 3 | 17 | 17.01% |
| Peercoin | 2 | 8 | 18.10% |
see here
Good write-up, I am regular visitor of one’s site, maintain up the nice operate, and It’s going to be a regular visitor for a long time.
I have not checked in here for a while because I thought it was getting boring, but the last few posts are great quality so I guess I?¦ll add you back to my everyday bloglist. You deserve it my friend 🙂
Good post. I be taught something more difficult on completely different blogs everyday. It’ll at all times be stimulating to read content material from other writers and follow just a little something from their store. I’d desire to use some with the content material on my weblog whether or not you don’t mind. Natually I’ll give you a link in your net blog. Thanks for sharing.
You reason like I do! Spooky!
Hi guys, I enjoy composing my synthwave music and recently I bumped into a very topical issue, namely how cryptocurrency is going to transform the music industry. I have decided to put together an article on the subject as I would like to inform the musicians and public at large just how cryptocurrencies can be a gamechanger in this field. I would like to donate this article to you for publication on your blog. I have saved the article in my Google drive: https://drive.google.com/drive/folders/1xX35t28GlE6wDomFAEvsPc1PqN3fp8ka?usp=sharing I did not have the time to find any images so I would be grateful if you could find and add some. I have also added a little blurb about myself. I hope you and your readers will enjoy reading my article. Have an awesome day! Regards, Tony
go to see each day some web sites and websites to read content, however this weblog gives quality based writing.
Your arguments should be accepted as the standard when it comes to this topic.
Thank you, I’ve been searching for information about this topic for ages and yours is the best I’ve discovered so far.
I enjoyed this! Useful read, but I don’t know where to go next. Which of your articles can you point me to read next?
Love your post, very interesting!!! Hope to be there where you are right now!
coauspdsoo,Hi there, just wanted to say, I liked this article. It was helpful. Keep on posting!
yqnhook,A fascinating discussion is definitely worth comment. I do think that you ought to publish more on this topic, it may not be a taboo ajkqzgwi,subject but generally folks don’t talk about such subjects. To the next! All the best!!
rxnpslybx,Thanks for this useful information, Really amazing. Thanks again. I LOve your BloG
Thanks for your marvelous posting! I truly enjoyed
reading it, you might be a great author. I will be sure
to bookmark your blog and will come back in the future.
I want to encourage one to continue your great writing, have a nice afternoon!