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  • Top 10,000 Bitcoin investors control one-third of the supply

    Top 10,000 Bitcoin investors control one-third of the supply

    Key Takeaways

    • Bitcoin is a decentralised asset, yet large amounts are controlled by a select few
    • The top 114 addresses hold nearly 3 million BTC, 15.5% of the total supply
    • The anonymous Satoshi Nakamoto holds 5.2% of the supply
    • MicroStrategy hold 0.68% of the supply

     

    Whether you love or hate Bitcoin, the world’s first cryptocurrency has thrown the word “decentralised” into the modern vernacular.  

    But while Bitcoin is the closest thing to a decentralised asset out there, it is worth noting that it does possess pressure points. Not central points of failure, but rather large holders who do possess significant amounts of the currency. In some cases, enough to cause a serious stir should those coins ever hit the market all at once.

    Satoshi Nakamoto

    The most obvious of the large holders is anonymous founder Satoshi Nakamoto. Whether one person or a group, Nakamoto possesses approximately 1 million bitcoins from the early days. That is equivalent to about 5.2% of the total supply – a very large number.

    Nobody knows who Nakamoto is, but it is certainly a risk to have this amount of coins in the hands of one person/entity.

     Coinbase even listed this factor as a risk to its business on its S-1 form when it went public in April 2021. Under the risk section, the company outlined “the identification of Satoshi Nakamoto, the pseudonymous person or persons who developed Bitcoin, or the transfer of Satoshi’s Bitcoins” as a risk to Bitcoin and, by extension, Coinbase’s business. 

    While speculating on Nakamoto’s identity is a fool’s game, and these coins could easily be lost forever, it is easy to see how Coinbase listed this as a risk on its filing. The fact is that one entity or person holds 5.2% of the supply, and nobody has any idea who.

    Bitcoin whales

    Looking beyond Nakamoto, there are plenty of wallets which contain a lot of Bitcoin. One study by the National Bureau of Economic Research outlines that the top 10,000 bitcoin investors control one-third of the total supply.

    That figure is an estimate and is “likely an understatement since we cannot rule out that some of the largest addresses are controlled by the same entity”, according to the study. For example, it doesn’t include the aforementioned 5.2% of coins controlled by Nakamoto, as it cannot be known whether Nakamoto is one individual.  

    Seeing as Bitcoin returned the equivalent of 230% compounded annually between 2011 and 2021, and in doing so outperformed every major financial asset class in the world, perhaps it is not surprising that a small group of early adopters control significant amounts of the supply.

    A $2,000 investment in 2010 would have netted you 10,000 bitcoins, which today is worth over $26 million. The select few who got involved in those early days and held onto their stash today hold significant amounts of the supply.

    Today, only 114 addresses contain 10,000 BTC or more (with exchange addresses likely some of those) and those 114 addresses contain nearly 3 million BTC, or 15.5% of the total supply.

    The below table shows quite how much Bitcoin is locked up in a small number of the top addresses.

    Entities that hold large amounts of Bitcoin

    Branching out from individuals, there are also entities which hold massive amounts of Bitcoin.

    The first to spring to mind is Michael Saylor and MicroStrategy, who own 130,000 bitcoins, 0.68% of the total supply. This is the most by any public company and some fear that should this ever hit the market, then the Bitcoin price may be dented downward, such is the quantity of bitcoins that MicroStrategy hold. 

    While MicroStrategy is the public company which holds the most Bitcoin, the private Chinese company Block.one, which developed the cryptocurrency EOS, owns 140,000 bitcoins. This makes it the largest known holding by any one company. 

    Final thoughts

    It is true that Bitcoin’s unique fundamentals make it a uniquely decentralised asset. The way the proof-of-work mechanism functions and the fact that no insiders started with any coins (even Nakamoto had to mine that stash) have helped make this decentralised quality a reality.

    But despite this decentralisation, there do exist several big holders who hold enough coins that the market could be rocked, at least in the short-term, were anything to ever happen that led to those coins hitting the market.

    The scale of Bitcoin’s rise has been so staggering that some of those early casuals who bought in for pennies are now in possession of monster stacks worth millions upon millions. As for Satoshi Nakamoto’s net worth in November 2021 at the Bitcoin all-time high? A cool $70 billion, good for 15th richest person in the world.

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  • 38 Investors Collectively Hold 112.24 Trillion Shiba Inu

    38 Investors Collectively Hold 112.24 Trillion Shiba Inu

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  • KATANA INU – A GAMING TOKEN CATCHING EYES OF BIG INVESTORS

    KATANA INU – A GAMING TOKEN CATCHING EYES OF BIG INVESTORS

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  • Grayscale Bitcoin Fund up 25% this year, but discount still killing investors

    Grayscale Bitcoin Fund up 25% this year, but discount still killing investors

    Key Takeaways

    • GBTC Fund is up 25% since the start of the year, compared to a 4% rise in the underlying asset, Bitcoin
    • The discount is now back to where it was prior to the FTX collapse, at 37%
    • The discount had hit an all-time high of 50% only four weeks ago

     

    The largest Bitcoin fund in the world, the Grayscale Bitcoin Trust, has seen its value jump by 25% since the start of the year. Bitcoin, on the other hand, is only up about 4% on the year.

    This means that the discount to the underlying asset, Bitcoin, is at its smallest level in months. I had analysed the divergence in December, only four weeks ago, when the discount hit an all-time high of 50%.

    Today, the discount sits at 37%, back to where it was before the ignominious collapse of FTX.

    What is the Grayscale discount?

    Grayscale is a trust which provides an avenue for investors to gain exposure to Bitcoin without physically buying Bitcoin. This can be convenient for institutions or other entities who may not be able to participate I the Bitcoin market directly for regulatory or legal reasons.

    But Grayscale has rarely traded at the same price as its net asset value. Previously, it had traded at a premium to the underlying Bitcoin as shares surged with investors desperate to get exposure to the high-flying cryptocurrency.

    Today, however, it is the opposite – a steep discount. While there is a chunky fee of 2% that explains some of the discount, this does not come close enough to bridging a discount of 30%+ that we have seen consistently in this crypto winter.

    The SEC recently denied Grayscale’s application to convert the trust into an exchange-traded fund, spelling bearish action around the fund. There has also been the rise of more competition, with similar funds being launched, especially in Europe, and filings for Bitcoin ETFs.

    But the most significant worry was surrounding the safety of reserves. This issue grew legs after the FTX collapse, as speculation mounted that Grayscale’s parent company, Digital Currency Group (DCG), may file for bankruptcy.

    DCG is also the parent company to Genesis, which recently laid off 30% of its staff and is reportedly considering bankruptcy. Concern grew when Grayscale refused to publish a proof of reserves report, suddenly in vogue following the nefarious actions behind the scenes at FTX.

    It cited “security concerns” as the reason that this would not be possible, but analysts decried this, with it very unclear what security concerns could be ignited by the publishing of public records on the blockchain.

    Why has the discount closed?

    While the discount is still enormous at 37%, this has narrowed from the staggering 50% it reached in the aftermath of the FTX implosion.

    There has been increasing pressure on DCG to address this discount, with calls from within the industry that the trust should allow investors to redeem their holdings, which would allow them to realise the full value of the Bitcoin they hold. This clamour may have helped narrow the gap somewhat.

    One hedge fund, Fir Tree, even launched a lawsuit against Grayscale, demanding that the company either lower its fees or allow redemptions such that the discount can be closed.

    But like everything in crypto right now, macro also has a part to play. The year has begun with crypto prices rising off increased optimism that inflation may have peaked. This follows a relatively serene month or so in crypto markets.

    The discount widened to a large degree in the aftermath of the FTX crash because people feared contagion and the chips were still falling. Similar to the peg on Tether slipping when the UST crisis occurred.

    Now that normal service has somewhat resumed, the discount has narrowed. Unfortunately for investors, it is still a staggering 37% off the net asset value. In a year where Bitcoin itself has plummeted, layering in a discount on top of that torrid price action is the last thing investors needed…

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  • Investors Sell Polygon (MATIC) and Shiba Inu (SHIB) For The Hideaways (HDWY) After it Gets 9,000% Growth Projection

    Investors Sell Polygon (MATIC) and Shiba Inu (SHIB) For The Hideaways (HDWY) After it Gets 9,000% Growth Projection

    What’s happening in crypto? Yesterday saw the Polygon and Shiba Inu price spike along with the wider crypto market. Polygon (MATIC) and Shiba Inu (SHIB) have not had a great 2021 despite this but the Polygon and Shiba Inu price gave investors good gains yesterday.

    Both projects lose out to The Hideaways (HDWY). It is the first cryptocurrency project to introduce decentralization to the property market through NFTs.. HDWY is projected to hit a 9,000% hike in 2023 after listing in major decentralized exchanges.

    Polygon (MATIC)’s NFTs Sales Stalls to its Lowest in More than a Year

    Investors are practicing due caution against underperforming cryptocurrencies – among them is Polygon (MATIC).

    Polygon (MATIC)’s NFT sales stall at a time when Cardano (ADA)’s digital collectibles are hitting a record high. Moreover, the new NFT project The Hideaways (HDWY) sold over 60% of its presale tokens over the same period, hinting there is growing market interest in non-fungible tokens.

    However, Polygon (MATIC) seems to be having it tougher than the rest. One of its most popular collections, Aavegotchi, lost 46% of its market value. Moreover, sales for the collection declined 32% over the same period.

    The monthly active traders for Polygon (MATIC) NFTs on OpenSea bottomed to below 1,000 – its lowest level since July 2021.

    Shiba Inu (SHIB)’s Unstable Burn Rate Poses Risk to Price

    The Shiba Inu (SHIB) community monitors two important on-chain activities: whale movements and burn rate.

    In the last week of September, Shiba Inu (SHIB)’s burn rate declined to its lowest level in 30 days. Meanwhile, it managed to stage a sharp comeback – surging 1,500% in the 24-hour charts where 45 million SHIB tokens had been dumped to dead wallets.

    Analysts noted that this inconsistent burn rate poses risk to the price moving forward. This comes as investors would likely dismiss linking their buying and selling signals with how many tokens are eliminated over a period as it changes very fast.

    Due to the volatility in Shiba Inu (SHIB)’s burning activities, investors are taking refuge in more stable projects like The Hideaways (HDWY) which possess a more stable growth pathway for clever investors.

    The Hideaways (HDWY) Gets a 9,000% Price Projection from Wall Street Analyst

    The Hideaways (HDWY) is getting attention lately due to its ability to connect crypto investors to luxury property investment. For the first time, a cryptocurrency project will revolutionize the way regular investors acquire properties through a decentralized platform.

    The Hideaways (HDWY) will use a global team of property experts to hand pick properties for their ability to produce yield above 20%. These properties will be linked to an NFT and each NFT will be offered for sale to HDWY investors.

    The HDWY project is the first of its kind in the crypto industry and has the first mover advantage – similar to Tesla and electric cars! We think this project will explode in 2023 and it’s incredible that investors are able to take part in the presale at just $0.06.

    Due to its novel offering, The Hideaways (HDWY) can hit a 9,000% gain in 2023. You’re up for exponential gains if you invest while The Hideaways (HDWY) sells at $0.06. The price will rise soon, so invest now!

    Website: https://www.thehideaways.io
    Pre-Sale: https://ticket.thehideaways.io/register
    Telegram: https://t.me/thehideawayscrypto
    Twitter: https://twitter.com/hdwycrypto

    Disclaimer: This is a paid release. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of Bitcoinist. Bitcoinist does not guarantee the accuracy or timeliness of information available in such content. Do your research and invest at your own risk.



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  • This Is why Shiba Inu and Dogecoin (DOGE) Investors Should Stay Alert This week

    This Is why Shiba Inu and Dogecoin (DOGE) Investors Should Stay Alert This week

    The Shiba Inu (SHIB) and Dogecoin (DOGE) investors need to pay a lot of attention to the Bitgert (BRISE) and Centcex (CENX) coins.

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  • Investors Sees Promising Returns from Shiba Inu (SHIB), Dogecoin (DOGE), and Flasko (FLSK)

    Investors Sees Promising Returns from Shiba Inu (SHIB), Dogecoin (DOGE), and Flasko (FLSK)

    Given how stable the cryptocurrency market has been over the weekend, the next bull run may begin early this week. There are numerous indications that a bullish explosion may be imminent. Some coins that could perform well in the upcoming bull run include Flasko, Shiba Inu (SHUB), and Dogecoin (DOGE).

    Because of the developments and the enthusiasm surrounding these currencies, crypto experts believe these coins have a tremendous potential to post a bullish explosion in the coming days. Shiba Inu (SHIB) Showing Some Signs of Recovery Shiba Inu (SHIB) was another green coin at the time of publication. The Shiba Inu (SHIB) has risen by 0.8% over the last 24 hours. Therefore there is a chance that the coin will do well today. One of the main factors influencing the present Shiba Inu (SHIB) growth is the rapidly expanding adoption of the Shiba Inu (SHIB) Eternity Game. Several different factors drive Shiba Inu’s (SHIB) acceptance. Dogecoin (DOGE) Shows Promising Performance The recently completed upgrade of the Dogecoin (DOGE) Core Wallet to version 1.14.6 is now active. Dogecoin (DOGE) may perform well in the upcoming Bull Run due to the upgrade, which is anticipated to promote acceptance of the cryptocurrency. The DogeathonDownunder2022, a hackathon for Dogecoin (DOGE), will also significantly contribute to a bullish Dogecoin (DOGE). These are why Dogecoin (DOGE) may be a coin to keep an eye on. Flasko (FLSK) Is A Secure Long-term Investment Following the launch of its presale in the cryptocurrency market last month, Flasko has unexpectedly drawn several crypto whales to its cutting-edge platform. A market for investing in expensive wines and spirits, a sector with a market value of trillions of dollars, has been created by the ground-breaking enterprise. Flasko’s smart contracts were audited and approved by the German company Solid Proof.  Additionally, the platform locked liquidity for 33 years to demonstrate investors’ commitment to the protocol by forbidding sales of their holdings for the following two years, making it an even safer long-term investment. According to experts, Flasko has every quality that makes blockchain technology successful. Additionally, there is still time to participate in the presale for just $0.065, giving you a great chance to benefit from the growing spirits and wine industry. In our opinion, Flasko is the ideal choice if you want to replicate the profits of well-known cryptocurrencies like Shiba Inu (SHIB) and Dogecoin (DOGE) with minimal investment. Website: https://flasko.io Presale: https://presale.flasko.io Telegram: https://t.me/flaskoio Twitter: https://twitter.com/flasko_io

    Disclaimer: This is a press release post. Coinpedia does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company.

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  • Shiba Inu [SHIB]: Why investors should closely watch the latest burn reaction

    Shiba Inu [SHIB]: Why investors should closely watch the latest burn reaction

    Contrary to its recent trend, Shiba Inu’s [SHIB] burn rate spiked incredibly by 1858% in the last 24 hours. According to Shibburn‘s data, the hike pushed the total SHIB burned within the period to a figure of 45,165,582 SHIB. In doing so, the total SHIB burned since initial supply is now 410.38 trillion.

    Here’s AMBCrypto’s Price Prediction for Shiba Inu for 2022- 2023

    Source: TradingView

    Not the SHIB you used to know

    In unusual fashion, SHIB did not follow the trend of an increased burn rate and decreased volume. According to CoinMarketCap, SHIB’s volume rose by 32.86% within the same period the burn rate increased. With the 24-hour trading volume at $123.72 million, SHIB’s price failed to react positively as it preferred an almost neutral position at $0.000010.

    While the whole outcome might be surprising, there were other unusual events that took place leading up to the present state. A look at the chart showed that SHIB’s accumulation and distribution had surged incredibly high. With the Accumulation and Distribution Line (ADL) at 97.95trillion, it meant that there was high demand for SHIB. In this case, traders were not only buying to hold, but also using the token to trade.

    Despite the neural reaction of the price, it seemed that the ADL had also helped in raising the SHIB support since 21 October. At press time, SHIB was holding its support level at $0.00000994.

    However, there were indications that the support might not be solid enough. This state was revealed by the Directional Movement Index (DMI). Based on the DMI indication, SHIB seemed to be at risk of falling to the bears. 

    This, because of the buyers’ (green) inability to overcome the sellers’ strength (red). Hence, giving the latter an edge over them. In addition, the Average Directional Index (ADX)  was close to hitting strong directional movement. With the ADX at 23.58, a move further north might spell doom for investors looking to make short-term profit.

    Source: TradingView

    What’s with SHIB on-chain?

    On-chain data from Santiment revealed that SHIB had not done much in terms of its one-day circulation. In fact, the decline from 18 October till the time of this writing was a glaring one. The platform revealed that SHIB’s circulation was 532.71 billion, at the time of writing. The circulating state might prove that investors should not take the DMI’s indications lightly.

    It was not also a positive sight, as per the transactions count. Santiment recorded the transaction count to be 133 billion, at press time. As such, SHIB seemed to be losing hold of attracting more investors to its shield. Considering all of this data, SHIB might require an “all-star” increase both on-chain and on-charts to see a significant hike.

    Source: Santiment

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