{"id":111704,"date":"2021-02-06T20:21:47","date_gmt":"2021-02-06T20:21:47","guid":{"rendered":"https:\/\/precoinnews.com\/?p=111704"},"modified":"2021-02-06T20:21:47","modified_gmt":"2021-02-06T20:21:47","slug":"glassnode-cto-dispels-the-myth-that-bitcoin-ownership-is-highly-concentrated","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/bitcoin\/glassnode-cto-dispels-the-myth-that-bitcoin-ownership-is-highly-concentrated\/","title":{"rendered":"Glassnode CTO Dispels the Myth That Bitcoin Ownership Is Highly Concentrated"},"content":{"rendered":"<p>Earlier this week, Rafael Schultze-Kraft, CTO at blockchain data and intelligence provider\u00a0Glassnode, did an analysis of \u201cthe distribution of Bitcoin across network participants\u201d. <\/p>\n<p>In a blog post published on Tuesday (February 2), the Glassnode CTO referred to a Bloomberg report (from last November) titled \u201cBitcoin Whales\u2019 Ownership Concentration Is Rising During Rally.\u201d He said that problem with such reports is that \u201cthat analyze the distribution of BTC across network\u00a0<em><strong>addresses<\/strong><\/em>. This leads to misleading statistics, which result in false narratives around BTC ownership among stakeholders.\u201d<\/p>\n<p>He then pointed out two problems with this approach:<\/p>\n<ul>\n<li>\u201cNot all Bitcoin addresses should be treated equal.\u201d (e.g. an address belonging to a crypto exchange can hold funds for millions of individuals) <\/li>\n<li>A Bitcoin address is not an \u201caccount.\u201d (e.g. one person can own\/control multiple addresses)<\/li>\n<\/ul>\n<p>Here are the results of Glassnode\u2019s analysis:<\/p>\n<p>The Bitcoin supply held by the smallest participants (shrimps and crabs) has increased by 130% since 2017, and the second smallest (i.e. octopuses and fish) has increased by 14%.<\/p>\n<p>As for the larger entities, i.e. \u201cdolphins + sharks\u201d and \u201cwhales + humpbacks\u201d, they have decreased their Bitcoin holdings by -3% and -7% respectively.<\/p>\n<p>Glassnode goes on to say that they found \u201con a more short-term time window\u201d a significant increase in the number of Bitcoin whales (and their supply) since 2020, which \u201csuggests that institutional investors, funds, family offices, and other HNWI have been entering the space.\u201d<\/p>\n<p>Glassnode\u2019s estimated number of network participants in each bucket and the amount of BTC supply they hold led them to the conclusion that \u201cthat around 2% of network entities control 71.5% of all Bitcoin.\u201d Furthermore, Glassnode points out that these numbers are \u201can estimate for an\u00a0<strong>upper bound<\/strong>\u00a0of the true distribution of Bitcoin ownership\u201d and that they \u201cexpect the actual distribution to be more evenly distributed across entity sizes.\u201d<\/p>\n<p><em>Featured\u00a0Image\u00a0by\u00a0\u201cIgorShubin\u201d\u00a0via\u00a0Pixabay.com<\/em><\/p>\n<p><em>The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.<\/em><\/p>\n<p>Source: <a href=\"https:\/\/www.cryptoglobe.com\/latest\/2021\/02\/glassnode-cto-dispels-the-myth-that-bitcoin-ownership-is-highly-concentrated\/\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Earlier this week, Rafael Schultze-Kraft, CTO at<\/p>\n","protected":false},"author":3,"featured_media":111703,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - 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