Bitcoin is becoming less and less dominated by whales

The bitcoin blockchain makes it possible to analyze the decentralized currency in detail. Among other things, by mapping out what the ecosystem of bitcoin holders looks like. Where that ecosystem used to be dominated by whales, that is now less and less the case.

Criticism of bitcoin

An important criticism of bitcoin is that the digital currency is not distributed fairly. You often hear people say things along the lines of: “When bitcoin becomes the world’s reserve currency, a very small group of people will have all the power. That can’t be good either!”

Somehow that is an understandable criticism and it makes sense that outsiders look at it that way. It remains difficult to explain that bitcoin is in fact the most honest way to launch a new money system. Everyone had the chance to participate from the start.

What we are now also seeing is that ‘the people’ are getting their hands on an increasing share of all bitcoin. Where it used to be an ecosystem dominated by whales, we now see that more and more small holders, who own relatively little bitcoin, are increasingly attracted.

Bitcoin shrimp and crabs

The so-called shrimp (<1 bitcoin) and crabs (1-10 bitcoin) in particular are rapidly devouring large amounts of bitcoin at the moment. Glassnode reports that the shrimp buys more than 100 percent of the annual bitcoin production. In the case of the crabs, it is 119 percent.

Bitcoin shrimp and crabs

So even if the miners sell 100 percent of their production, these two cohorts will bring in even more bitcoin. Of course they buy that bitcoin from the market.

Read Also:  Senior Leaders: Seventy-year-olds rule the world

For that reason, fewer and fewer bitcoins are available for sale and the relative scarcity of the digital currency is increasing. The more bitcoin the shrimp and crabs gobble up, the harder it is to get bitcoin. Ultimately, this can only have a positive effect on the price.

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here