PARSIQ studies have found that Bitcoin wealth is almost 50 times more concentrated than global wealth

50% of Bitcoin wealth is controlled by 0.023% of wallet addresses1 – compared to 50.1% of global wealth controlled by 1% of the world’s population2

As the dominance of Bitcoin as a share of the cryptocurrency market has not reached heights since the beginning of 2017, the blockchain monitoring platform PARSIQ today published new research that shed new light on the distribution of cryptocurrency assets.
The results show that, surprisingly, crypto-wealth is more centralized and controlled by far fewer participants than many think – Bitcoin is almost 50 times more concentrated than global wealth in the hands of the few, and Ethereum scores nearly 300 times more concentrated .

Other important findings are:

  • To enter the top 50% of Bitcoin wealth, you would need to hold 347 BTC, which is $ 3.8 million
  • On average, these wallet addresses have been around for a little over two years, so much of the accumulated wealth is before the surge in interest in late 2017
  • 6,457 individual wallet addresses hold fifty percent of the total cryptocurrency assets of all five major cryptocurrencies. Without Bitcoin, that number drops to 1,805

Of course, cryptocurrencies were created with the desire to create a more egalitarian society, away from state manipulation and centralized control. However, this research shows that the result is surprisingly far from achieving that goal – cryptos have just created a new elite of their own and despite mass media interest over the past 2-3 years, whales are still holding cryptocurrencies for the long term and still the Have the ability to move the markets.

PARSIQ, the blockchain monitoring and information platform, today announced the results of its study on the distribution of cryptocurrency assets across the top five cryptocurrencies. Bitcoin wealth has been found to be concentrated in a relatively small number of wallet addresses, and that number hasn’t changed much in years.
Cryptocurrencies were created with the desire to create a more egalitarian society, away from state manipulation and centralized control. However, the latest research by PARSIQ has shown that the wealth of cryptocurrencies is controlled by a small number of early adopters and exchange-owned “whale wallets”.
Among the five largest cryptocurrencies by market capitalization, Ripple is the most concentrated, with half of the XRP controlled by just 14 wallet addresses, representing just 0.001% of the total wallet addresses funded3. However, Ethereum is not far behind with 346 wallets, which consist of 0.003% of the wallet addresses1.

Number of wallets that control 50% Percentage of total wallets that control 50% Multiplier compared to global wealth
Global wealth N / A 1% 1
BTC 4,652 0.023% 44
ETH 346 0.003% 292
XRP 14th 0.001% 1137
BCH 1,265 0.026% 38
LTC 180 0.012% 82

“HODLing” leads to an increased concentration of wealth

The minimum number of Bitcoins required to join the elite of the top 50% of Bitcoin wallet addresses is 347 BTC, or about $ 3.8 million. On average, these wallet addresses have been around for a little more than two years, so a large part of the accumulated assets are before the interest rate hike at the end of 2017.

In the first few years, Bitcoin’s wealth was gradually distributed more widely, but this accumulation has not changed much in two years (see graph below) and has partially reversed. Ethereum and Litecoin were also relatively stable, although with these cryptocurrencies far fewer wallets control half of the assets – 346 and 180 wallet addresses, respectively.

Bitcoin Cash is the exception to a stable two years. It has seen a significant concentration of wealth since the hard fork that created it as large BCH holders cashed in on their holdings.

The real story is that while mass media interest generated a great deal of interest in 2017-2018, very little has changed beneath the surface. The whales still hold cryptocurrencies for the long term and still have the ability to move the markets.

Andre Kalinowski, co-founder of PARSIQ, said: “Right now, only 6,457 individual wallet addresses hold fifty percent of the total cryptocurrency assets of all five top cryptocurrencies. Without Bitcoin, that number drops to 1,805. The individuals and organizations who control these addresses are tremendously influential, and their power remains largely unchecked as their activities are largely unchecked.

“The fact is, the transparency that is part of the DNA of cryptocurrencies has been tarnished by the size and complexity of analyzing those cryptocurrencies. It is time to open up the blockchain to everyone, promote a more equitable distribution of wealth, or at least ensure that the whales are more accountable through better surveillance. “
1 Bitcoin wallet addresses with at least 1 US dollar, currently 20,314,235 wallets. Ethereum wallet addresses with at least $ 1 number 10.129.112
2 The Credit Suisse Wealth Report 2017 found that 1% of the world’s population owns 50.1% of global wealth (or around 140 trillion US dollars) https://www.credit-suisse.com/about-us/de/reports -research / global- wealth-report.html
3 wallets with at least 20 XRP (approx. 6 USD), currently 1,592,456

About PARSIQ

PARSIQ is a next generation blockchain surveillance and intelligence platform. PARSIQ’s solution listens to all blockchain activities and creates a fully indexed representation
what happens when in a particular blockchain. It goes beyond the current solutions, with new innovations such as mempool monitoring and ParsiQL, a query language that can be used to create complex logical conditions that react in real time to the events or certain transactions on the blockchain.

The technology protects against unauthorized blockchain events, its market intelligence capability gives new insights into blockchain trading activities and can use forensics to delve deep into past criminal activities on the blockchain.

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