Bitcoin – Distribution of Wealth

The difference between fiat money like the US Dollar and Bitcoin is comparable to the difference between the US Dollar and gold. The global supply of gold increases as new gold is mined, just as the mining process determines the supply of new Bitcoin. Like gold, people buy, hold, and sell Bitcoin largely in pursuit of capital gains. Today, cryptocurrencies are primarily viewed as investment assets rather than everyday mediums of financial transactions.

Currently, the total value of Bitcoin in circulation is about 19.91 million BTC (≈ 1.6816 trillion USD). In comparison, the estimated above-ground stock of gold is around 216,215 tons, valued at approximately 23.5 trillion USD. Therefore, it is anybody’s guess as to how long it will take Bitcoin to become the most preferred way to be a store of value. Interestingly, 45% of the world’s gold is held in the form of Jewelry- a feat beyond the capacity of bitcoin.  This is because “ Gold is unbelievably beautiful” ( Why do we value gold? By Justin Rowlatt)

As the ownership of gold is highly skewed, the same is true of Bitcoin. It is interesting to know that the highest ownership of Bitcoin as an individual is none other than Satoshi Nakomoto, an unknown person or a group of persons going by this pseudonym, who invented Bitcoin in October 2008. The total Bitcoin held under this name is around 1.1 million BTC, across 22000 wallets. The market value of this holding is around 93 billion dollar as on April 2025. The skewed distribution of this digital asset can be seen from the following table.

Source: https://paxful.com/university/who-holds-the-most-bitcoins

Conclusion
Bitcoin, like gold, demonstrates both its appeal as a store of value and its tendency toward concentrated ownership. While its future role in global finance remains uncertain, its distribution patterns suggest that Bitcoin is not unlike other scarce assets—valuable, but unevenly held.