So a lot for bitcoin democratizing the world of finance.
A new study has discovered that lower than 10,000 folks worldwide collectively personal 5.5 million bitcoin — almost a 3rd of the 18.77 million bitcoin that up to now has been mined. The latter at present carries a market worth of almost $1.2 trillion.
What’s extra, lower than 1,000 folks personal 15 % of the bitcoin that’s in circulation, a piece that’s at present price $180 billion. The research from the National Board of Economic Research notes the focus may very well be much more acute than it is ready to show.
“Our results suggest that despite the significant attention that bitcoin has received over the last few years, the bitcoin ecosystem is still dominated by large and concentrated players, be it large miners, bitcoin holders or exchanges,” research authors Igor Makarov and Antoinette Schoar discovered.
“This measurement of concentration most likely is an understatement since we cannot rule out that some of the largest addresses are controlled by the same entity,” Makarov and Schoar mentioned.
The focus of bitcoin mining — the method of introducing new bitcoin into circulation — is much more problematic, the authors write. Just 10 % of bitcoin miners are liable for 90 % of bitcoin mining and 0.1 % of miners are liable for 50 % of bitcoin mining.
“This inherent concentration makes bitcoin susceptible to systemic risk and also implies that the majority of the gains from further adoption are likely to fall disproportionately to a small set of participants,” the authors added.
The value of bitcoin has jumped from round $13,000 in November to almost $67,000 final week. On Tuesday, it not too long ago modified palms at $62,092.94.