The Express reported that a study by Chainalysis, a well-known crypto currency analysis company, concluded that 1,600 Bitcoin wallets own more than a third of all Bitcoin.
1,600 wallets hold more than 33% of all Bitcoin code
Whales, that’s how investors are called, who hold huge amounts of crypto currencies. This term describes the 1,600 very aptly. Unfortunately, Bitcoin code can cause problems, as they can manipulate the price with their quantities and can influence it positively but also negatively.
Phillip Gladwell of Chainalysis explained that the volatility of Bitcoin code is threatened because the Bitcoin price can only be influenced by a few people.
The best negative example of this is the trustee of the Mt.Gox exchange, who has no regard for the Bitcoin price and has hundreds of thousands of Bitcoin at his disposal.
Nevertheless, the study also came to the conclusion that some of these Bitcoin have not been moved for years. From this one could conclude that perhaps some unfortunates have lost their Bitcoin forever. Satoshi Nakamoto’s Bitcoin has also not been moved for years and will probably not be moved again. One speculates that Satoshi Nakamoto had up to one million Bitcoin.
Not only Bitcoin trader are affected
The majority of crypto currencies suffer under the same circumstances. A large number of different Bitcoin trader have a similar ‘distribution of wealth’. The ten largest EOS wallets are said to own almost half of all EOS.
However, one should bear in mind that many of the addresses, whether at Bitcoin or EOS, belong to a stock exchange. They have many coins, but they don’t belong to them, but to the users, which somewhat reduces the risk of price manipulation.
Improvement in sight?
Litecoin is also affected by this problem. More than 50 percent of all Litecoin are owned by the 400 largest Litecoin wallets.
However, analysts assume that this problem will improve in the future. With increasing acceptance and more users and wallets, the problem is expected to improve in the long run. But until that happens, concerns about possible price manipulation by whales remain.