Bitcoin has spread its dominance in the crypto market and gained a priority in the crypto investment space. According to a WSJ report and a new study by the National Bureau of Economic Research, a minuscule group of institutional investors control more of the total supply of Bitcoin (0.01 of Bitcoin holders control 27% of the total Bitcoin supply).
The National Bureau of Economic Research, a private non-profit research organization in America, released a study claiming that nearly 10,000 Bitcoin investors, or 0.01% of all BTC holders, acquire 5 million BTC, or 27% of the total 18.9 million coins in circulation.
The study was conducted with the help of finance professors Antoinette Schoar at MIT Sloan School of Management and Igor Makarov at the London School of Economics to map out and analyze every transaction made within the Bitcoin network to conclude the dominance of Bitcoin holders in its 13-year-old history.
Former Google Product Director Steve Lee explained the same fact in October 2018. He said, “If you own 0.28 BTC and HODL, you can be certain no more than 1% of the current world’s population can ever own more BTC than you. A modest investment of $1,830 today can ensure you are a 1% in a future Bitcoin world.”
A chart published in 2017 calculates that the top 1% of bitcoin holders need at least 15 BTC in their crypto wallet and 89 BTC to make themselves into the top 0.1%. According to the Blocklink.info chart, nearly 225,000 people are within the top 1% percentile range.
The study argues about the ramifications of centralization that are mainly twofold. First, it makes the entire Bitcoin network more vulnerable to systemic risk. Second, the majority of the gains from the bullish price and increased adoption go to a disproportionately small-cap investor.
According to the WSJ report, there is a considerable gap between bitcoin holders and traditional American riches. Nearly 144 million wallets acquire the top position. Top holders of bitcoin control a significant share in BTC than the richest American personalities that hold in Dollars. The United States Federal Reserve says that the top 1% of US households control one-third of all wealth.
The answer to the BTC 1% club question is quite confusing and debatable as it comes with a lot of different calculations. The reason for finding the exact amount is unknown because it can’t be accurately calculated as the number of bitcoin transactions in mining bitcoin, bitcoin accounts, wallets, burned bitcoins, and bitcoin holders around the world is still unknown.
Bitcoin is the largest cryptocurrency in the crypto market by capitalization. It is a good investment option if you have high-risk management and a strong financial position. Bitcoin is the first choice of investors to bring a wave to their portfolio by adding exposure to this digital currency. However, we can’t guarantee its future investment as its price is highly volatile.