The distribution of wealth within the Bitcoin network is a controversial issue. Every so often, he returns to the fore. This time, based on a tweet from the TrueStory CEO, Preethi Kasireddy, the debate was revived, especially since this executive assured that there is very unequal distribution, in which only 2% of the active network addresses control the 80% of the wealth in bitcoins.
Kasireddy’s reasoning suggests that, behind each network address, there is a unique user. Thus, it is clear that the distribution of the wealth of Bitcoin would be conceived under the same structure of the wealth of the world, where 1% manages 50% of the wealth of the world.
However, an assessment made by several users is that, without specifying data such as what percentage of those bitcoins have been lost in addresses that have not moved for years, or which addresses belong to exchange houses, which manage the funds of hundreds or thousands of users, it is difficult to talk about the existence of an inequality relationship . This without considering that the great possessions of Bitcoin do not translate into influence over the network.
Bitcoin wealth distribution: 2% of addresses control 80% of the wealth.
— Preethi Kasireddy (@iam_preethi) August 13, 2019
“Bitcoin wealth distribution: 2% of the addresses control 80% of the wealth. Ouch, ”Kasireddy tweeted on August 13.
One of the most criticized points about Kasireddy’s publication was the fact that he assumed that each address represents a user and that he did not clarify his methodology, as Matt Odell pointed out. “Source? Methodology? Excluding exchanges? Excluding inactive addresses? Excluding empty addresses? Excluding addresses with insignificant amounts? You are being intentionally misleading or need to investigate further, ”he said in response to Kasireddy’s post.
In addition, it seems that the data on which the TrueStory executive was based for publication does not take into account information about sleeping addresses or lost bitcoins that, according to a Chainalysis report, published in 2017, is between 2, 78 million and 3.79 million BTC.
According to Sasha Fleyshman of Arca, if we consider this figure and also discount the amount of Bitcoin concentrated in addresses that have been publicly recognized as owned by some exchange houses or custody services, the figure is reduced to 61.51%.
“The ‘Rich List’ of BTC holders contains a myriad of people with different backgrounds, education, and points of view. These people do not have powerful positions that dictate world decisions. The struggle for power is very different in our space than in the traditional landscape, ” said Fleyshman through his account on the social network Twitter.
Another who took advantage of the debate was the analyst, Gabor Gurbacs, who said that after studying information about the distribution of bitcoin property, about 14,000 addresses own 62% of BTC’s wealth, while there are only 3 wallets that have more than 100,000 BTC and 115 who own between 10,000 and 100,000 BTC. The analyst stressed that large wallets are often exchanged with millions of customers, emphasizing the argument that Bitcoin addresses are not people.
Currently, each bitcoin is priced at USD 10,319, with an exchange of USD 22,541,411,484 in the last 24 hours. Its main exchange markets have been ZB.COM, DigiFinex and OKEx, mainly against tether (USDT).