Investing in Bitcoin has ended up becoming quite a popular strategy for many rich entrepreneurs because of the fact that this is the sort of thing that could potentially end up bringing them massive amounts of wealth. With all of that having been said and now out of the way, it is important to note that the people that got in on Bitcoin early have had a massive advantage.
One reason for this is that they were able to buy lots of bitcoin for cheap, and this has resulted in a situation wherein massive amounts of wealth inequality have emerged. A recent study conducted by the National Bureau of Economic Research revealed that 0.01% of all Bitcoin holders own around 27% of all Bitcoin, with the remaining 73% being spread out around 99.99% of the rest of the people that decided to invest in this cryptocurrency.
The total value of their holdings is around 5 million BTC, which would currently be worth approximately $232 billion. If you divide this between the 10,000 accounts that own this wealth, it comes up to around $23 million per account which is far more money than the average Bitcoin wallet holder tends to have at any given point in time with all things having been considered and taken into account.
The thing is, most other cryptos don’t seem to have a problem like this at least so far. They tend to have a much more equitable distribution of wealth. Buying and holding crypto might be useful in the short term, but with so much wealth already concentrated there is a disproportionate power dynamic that is clearly at play here. Bitcoin wealth concentration is even worse than the entire US economy which is notorious for being highly unequal. There’s not much that can be done about this, but knowing that the inequality exists in the first place is rather important.
Read next: Cryptocurrency Scams Rose By 81% Across 2021, As The Online Form Of Exchange Becomes More Legitimized
One reason for this is that they were able to buy lots of bitcoin for cheap, and this has resulted in a situation wherein massive amounts of wealth inequality have emerged. A recent study conducted by the National Bureau of Economic Research revealed that 0.01% of all Bitcoin holders own around 27% of all Bitcoin, with the remaining 73% being spread out around 99.99% of the rest of the people that decided to invest in this cryptocurrency.
The total value of their holdings is around 5 million BTC, which would currently be worth approximately $232 billion. If you divide this between the 10,000 accounts that own this wealth, it comes up to around $23 million per account which is far more money than the average Bitcoin wallet holder tends to have at any given point in time with all things having been considered and taken into account.
The thing is, most other cryptos don’t seem to have a problem like this at least so far. They tend to have a much more equitable distribution of wealth. Buying and holding crypto might be useful in the short term, but with so much wealth already concentrated there is a disproportionate power dynamic that is clearly at play here. Bitcoin wealth concentration is even worse than the entire US economy which is notorious for being highly unequal. There’s not much that can be done about this, but knowing that the inequality exists in the first place is rather important.
Read next: Cryptocurrency Scams Rose By 81% Across 2021, As The Online Form Of Exchange Becomes More Legitimized