Bitcoin, after all, has no problem with wealth distribution, said another expert as the industry debate continues to simmer.
BTC ownership “seems balanced”
In one tweet On August 15, Gabor Gurbacs, digital asset strategist and director at investment management giant VanEck, recorded the claim that Bitcoin supply had been centralized.
Previously, comments had appeared from sources such as Vinny Lingham, CEO of Civic, who expressed concerns about the idea that 80% of the available bitcoins were in only 2% of the wallets.
As a bitcoinist reported, others argued that the metric was irrelevant as a large number of wallet addresses contained virtually no credit and were virtually unused.
Nevertheless, there was a back and forth, with technical sources ultimately pointing out that the overall supply becomes more and more decentralized over time.
Gurbacs agrees. “Ownership seems balanced,” he summarized, noting that the addresses that contain the largest amounts of BTC are “often exchanges with millions of customers.”
62% of the supply is in around 14,000 wallets, he added, noting that the measurement doesn’t take into account that a user has multiple wallets under their control.
Centralization is the problem with altcoins
The status quo for Bitcoin distribution is likely to change interestingly in the future as supply decreases.
As already reported by Bitcoinist, the upcoming halving of the block size in May 2020 will usher in the last – and longest – phase of the Bitcoin minting process. That month, 85% of total supply has been depleted and the remaining 15% will be brought into circulation by 2140.
Of these roughly 17.8 million Bitcoins that were previously available, a significant portion is likely to be banned forever due to misplaced keys or other random circumstances.
Statistics put the proportion of “lost” coins at up to 20%, which means that the competition for the rest becomes tighter the more lay people come on board.
Discussion of the offering comes at a striking time this month as controversy is brewing over the impact of centralized control on altcoins.
Specifically, Ripple and its associated XRP token are at the center of speculation after the company stepped up its sales in 2019 to break records.
Now trust seems to have all but disappeared among already skeptical commentators, as veteran trader Peter Brandt claims that Ripple’s practices would ultimately result in large price falls.
“The chart pattern for many, many months showed the distribution of XRP by Ripple – it manipulated the price to hold support. But if support gives way, Ripple will be forced to give up on a large scale. ” wrote on Twitter Wednesday.
What do you think of the Bitcoin supply distribution? Let us know in the comments below!
Images via Shutterstock