Over the past few years, several “warning bells” have started to sound for all Bitcoin maximalists. Seems like the decentralization of the main cryptocurrency is more like a myth and has neither part nor lot in ability-status congruence. According to some experts of the industry, 40% of all Bitcoins are stored on cryptocurrency wallets with a balance of 1000 BTC or more.
Who Controls Bitcoin?
According to data published by digital asset strategist/director at VanEck Gabor Gurbacs, there are only 3 wallets that own 100000 BTC and more and 115 that own 10000-100000 BTC. The main part of them is cryptocurrency exchanges with millions of users.
If we exclude some factors that could affect the accuracy of the results, in particular, remove wallets belonging to exchanges, we can get the following result.
The results are presented below on the chart of the Lorentz curve. A straight blue line demonstrates the complete equality in the distribution of coins, that is when each person gets an equal amount of BTC. The red curve under the line corresponds to reality – the ratio of the number of wallets to the number of all coins have already mined. As we can see, the first 25 % of the holders don’t own a few percents of Bitcoins. But the tiny part of the particularly well-to-do holders accounts for most of the existing coins.
That is the diagram indicates the “unfairness” of the cryptocurrency distribution. Although it simply indicates the difference in the social status and condition of industry participants.
In general, the Lorentz curve demonstrates income unfairness in economics. The closer the curve is to the straight line, the fairer the distribution of all the funds. Its position on the chart is controlled by social programs and tax reforms.
This statistic has been criticized by some Twitter users. BlockTower Capital co-founder Ari Paul advised experts to exclude wallets with an account balance of less than 0.01 BTC from the sample. According to him, any user can create thousands of Bitcoin addresses, which then will not be used. Therefore, these purses are supposedly not worth taking into account.
That wealth is unevenly distributed is probably a normal situation. However, as well as knowledge: the one who constantly studies new areas, the first to receive various things, which then become wealthy. The example is registering the first domains in the .com zone because their further sale brought millions of dollars to the owners! Among this one occur to sex.com or casino.com
Another example is early investors. Shares of Facebook or Amazon, bought a decade ago, were considered a completely rubbish investment, but someone believed in these companies and their business model.
To get closer to the cherished percentage of the richest Bitcoin wallets it is the proper time to buy cryptocurrency. That time we will live a life!
Peter Schiff Warns Of A Possible Crash Of Bitcoin Below $2,000
Peter Schiff, a stockbroker, and financial commentator took to Twitter recently to voice his opinion on the direction of BTC. Though he said the crypto asset is on his way to $6K, however, warns that things can go worse, driving price below to $2K.
A Possible Crash Below $2,000 For Bitcoin (BTC)
Peter Schiff, is known for his love for gold while exhibiting intense hate for bitcoin. However, he has kept an eye on bitcoin, updating the community about its impending crashes to prove his point that bitcoin is worthless.
Though he admitted possessing some bitcoin, his recent tweet still shows he doesn’t see the asset as a wise choice for smart investors.
Peter Schiff, in his recent tweet, expressed how horrible things were looking for bitcoin. According to Mr Schiff, bitcoin is in a move to complete a popular pattern, the head-and-shoulder, which will see the asset drop in value to about $6,000. Furthermore, he opines that bitcoin could slump drastically below the $2,000 mark if the pattern is completed.
While many do not agree with Peter Schiff, some others think bitcoin crashing below $2,000 would be an opportunity to buy more bitcoin.
All these, however, is happening at a time when the institutional traders are trying to pick some interest in bitcoin as trading on the futures exchange, Bakkt, continues to rise.
At the time of writing, bitcoin is currently trading at $8,062.72, with a market cap of over $145 billion according to CoinMarketCap.
Ripple Sends $26 Million Worth of XRP to Jed McCaleb, XRP Army Fears Another Dump in Price
Time and again, several members of the XRP community have opined that the massive dump of the crypto asset in the market has impacted on its price, negatively. Now, there are speculations for another dip in XRP’s price. The latter is after Whale Alert informed on September 7, 2019, that 100 million XRP tokens have been transferred to Jed McCaleb, Ripple’s co-founder.
Ripple Sends XRP Worth About $26 Million to McCaleb’s Wallet
According to Whale Alert, Ripple transferred 100 million XRP valued at $26,322,440 to Jed McCaleb’s wallet. The transfer has led to the sentiment in the crypto space that XRP might tank below its $0.262 price today. Also, the opinion is due to McCaleb’s reputation for dumping huge amounts of XRP in the market.
McCaleb is Ripple’s co-founder, and in 2014, Ripple transferred 9 billion XRP to him as his share for founding the company in 2012. However, the blockchain company entered a seven-year agreement with McCaleb to control how much XRP he can sell in the market yearly.
Per the agreement, the co-founder could sell $10,000 worth of XRP per week in the first year, $20,000 per week in the second, third, and fourth years, and “750 million XRP per year for the fifth and sixth years.” In the same vein, he could choose to dump 1 billion XRP yearly for the seventh year, and 2 billion XRP yearly after the seventh year.
McCaleb’s Dump of XRP Impacts of Asset’s Market Price
Given that this is the fifth year since the agreement was made, McCaleb can choose to dump thousands of XRP tokens daily. In 2014 when he announced his plans to sell a significant part of his XRP holdings, the value of the asset declined by 40%. As such, the continuous dump of the asset has also been pointed out as one of the reasons why it is not spiking like other top cryptocurrencies.
Asides from being reputable in the XRP community, McCaleb is also a name associated with Mt Gox, one of the first cryptocurrency exchanges. He founded the platform and sold it off years before its hack. Similarly, McCaleb is the creator of Stellar (XLM), the 11th largest cryptocurrency by market cap.
Nonetheless, the crypto community has aired its views about the potential for McCaleb to release another share of XRP to the market. Crypto BitLord, for instance, said: “Wow. Another cool $26M Jed can unload at market. This shits out of control.” Another remarked that: “know, right?! Private businesses shouldn’t be allowed to exist. The name “Jed” should be banned.”
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