Connect with us

Cryptocurrency

40% Of Bitcoins Are Stored On Wallets With A Balance Of Over 1000 BTC

Published

on

40% Of Bitcoins Are Stored On Wallets With A Balance Of Over 1000 BTC

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.

lorenz curve

Source: trustory.io

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!

Cryptocurrency

Crypto Researchers Concerned About The ‘Centralized Structure’ Of The Binance Smart Chain

Published

on

Crypto Researchers Concerned About The 'Centralized Structure' Of The Binance Smart Chain

Binance Smart Chain has been rising in popularity as interest rates from different parts of the world, including South Korea, sent the network’s transaction records to new highs. However, this has not deterred analysts’ from pointing out the increasing level of centralization within the network. Ryan Watkins, a Messari analyst recently addressed the influence that Binance has on the entire Binance Smart Chain, explaining that most of the commendable progress made on the network is not the result of the implementation of innovative concepts. Rather, it is a product of Binance’s control over the BSC network.

“The reason why BSC is faster and more scalable is not because of some magical technological innovation. No, it’s instead the magic of centralization. BSC is an Ethereum fork with a centralized validator set. That’s it. Nothing more.” He wrote on Twitter.

Unlike some other networks, the Binance Smart Chain has a total of 21 validators (people who verify the transactions and confirm their legitimacy, before adding them to the Blockchain). These validators are handpicked by the Binance Chain, further strengthening the notion that the network may be more centralized than it shows itself to be. 

Wilson Withiam rolls out some points to consider, starting with the pattern of resetting active validators, which is determined by the voting power of each validator. He notes that BNB staking and delegation is carried out on the Binance Chain, by Binance Chain validators as well.

In essence, Withiam argues that the pattern of validator distribution across the Binance Smart Chain is questionable as the identities of those behind the nodes in the validator sets are not made transparent. As he puts it “BSC now supports several third-party validators, although at least 5-6 others have close ties to Binance. The distribution of validator accounts is far less clear for Binance Chain.”

To dispute that Binance’s user experience is not ahead of other networks is false, and Withiam agrees with this. Even Watkins acknowledges this as he noted that BSC has fueled mainstream adoption of DeFi “Binance has incredible reach and influence and has used that to funnel a boatload of new users in DeFi. Binance executes period. That’s why BSC is winning.” He asserted. 

However, he argues that speed and scalability outside Ethereum without sharding or a centralization can only be legitimately found on the Solana Blockchain. Conclusively, Withiam urges BSC users to poke into the network, enough to understand where the loopholes are. 

“For those using BSC, take the time to understand the topology of the network. Sure, the fees and speed (both UX factors) are undoubtedly preferable. But strong censorship resistance and fault tolerance are not part of the package.” He wrote in conclusion.

Continue Reading

Cryptocurrency

Ethereum’s Blockchain will be home to Visa’s settlement transaction

Published

on

Ethereum's Blockchain will be home to Visa's settlement transaction

Visa has made a decision to allow the use of the stablecoin USD Coin in the settlement of transactions on its network over the Ethereum blockchain.

As announced on Monday, global payments technology company Visa Inc. mentioned transactions on its network could now be settled via Cryptocurrency with the use of the stablecoin USD Coin. 

According to a Reuters report, Visa noted the program was piloted with the payment platform Crypto.com, further stating that plans are underway to extend it to other crypto partners.

The USDC, or USD Coin, is a stablecoin crypto with a 1:1 fixed ratio to the US Dollar in value.

This marks a turning point in the settlement of transactions on the Visa payment network especially for partners with cryptocurrency holdings. The traditional process required customers with cryptocurrency holdings to convert the asset to fiat currency at an additional conversation rate before payments could be made on the network.

On the other hand, with this recent development, customers could easily settle transactions directly with the use of USDC by paying to Visa over the Ethereum blockchain, eliminating the hassles and extra fees that come with conversions.

Head of Crypto at Visa, Cuy Sheffield noted that this move comes as a result of increasing demand for cryptocurrencies from “consumers across the world”.

Recall that Visa had been one of the major adversaries of Bitcoin and digital assets, attracting general criticisms for its otherwise “backward” stance on growing technology.

Now, with the recent decision to allow transactions directly with USDC, it has completely embraced the emerging concept of cryptocurrency—a move that could potentially open doors for seamless transactions on its network, attracting more cryptocurrency proponents.

It wasn’t until early this year that the Credit/debit card company made a complete turnaround in its position with the unveiling of its crypto payment service for banks last month after a period of seemingly ceaseless antagonism against digital assets.

Visa’s recent decision to accept settlements in USDC is the latest indication of increasing adoption of crypto in the FinTech industry with major big players like BlackRock Inc, BNY Mellon, and MasterCard Inc embracing and adopting virtual assets.

Meanwhile, the payment giant PayPal had been indicating interest in crypto right from the jump, stepping into the Crypto space officially sometime last year as they finally allowed users to hold cryptocurrencies on the platform.

MasterCard Inc. recently announced its plans to support digital assets, outlining strict criteria for adoption. Inasmuch as indications suggest not all cryptocurrencies would be adopted, these recent decisions by major financial firms suggest growing acceptance of digital assets—a revolutionary concept that can potentially affect the financial industry as well as conventional business transactions in a huge way.

Continue Reading

Trending