Bitcoin whales hold 25% of the BTC supply as other entities keep accumulating

Whales, Bitcoin whales hold 25% of the BTC supply as other entities keep accumulating
“Whale” by kgibson is licensed under CC BY 2.0
  • Whales hold 25% of the BTC supply, down from nearly 60% in 2013
  • More and more people appear to accumualte Bitcoin
  • Satoshi Nakamoto’s “holdings” are not included in these rankings

BELGIUM (CoinChapter.com) — The ownership of Bitcoin and other cryptocurrencies can fall into many categories. Most people look for “whales, people that own significant amounts of a crypto asset. For Bitcoin, it would appear that whales own less of the supply every quarter, allowing for a more even overall distribution.

Also read: US mutual fund giant launches Bitcoin fund

Bitcoin Whales Holdings Decrease

A fair and somewhat even distribution of wealth is essential in any financial ecosystem.

In traditional finance, the balance of power is unfair between rich and poor and will likely continue to spiral out of control over time. With cryptocurrencies, that situation can be different, although it won’t always be. When we look at Bitcoin as an example, supply distribution has always been a tad controversial.

Bitcoin creator Satoshi Nakamoto owns multiple wallets that hold a significant amount of the total Bitcoin supply.

However, Satoshi has not been around for years, and to consider him a whale feels incorrect. When taking Satoshi Nakamoto out of the equation – most of his coins are likely lost forever – the BTC distribution starts to look rather intriguing. 

Per the statistics by Willo Woo, whales control 25% of the Bitcoin supply.

That is still a substantial amount, although far less than most people may expect. Being a whale is akin to owning 1,000 BTC or more, worth over $45 million at today’s price. Interestingly, the “middle class” seems to consist of long-term holders. Its presence in the rankings has picked up again, as many people seem fine with holding between 10 and 1,000 BTC. 

Bitcoin supply distribution. Source: Willy Woo / Woonomics
Bitcoin supply distribution. Source: Willy Woo / Woonomics

Some may argue that publicly traded companies are part of the whales’ group. However, that is not the case, as these are in the same group as ETFs and exchanges to determine their position.

When combined, they represent 18% of the Bitcoin supply. The remaining 14% is in the hands of people who own less than 10 BTC. A relatively fair distribution, primarily due to fewer whales holding vast sums of Bitcoin these days. Their domination of over 50% has fallen dramatically since 2013 and keeps declining year-over-year.

Why Are People Buying Bitcoin?

Many people are stocking up on smaller quantities of Bitcoin.

The “minnow” category has seen tremendous growth in recent years. Additionally, the involvement of publicly traded companies confirms interest in Bitcoin is growing. Unfortunately, they are also the entities contributing to decreasing holdings among BTC whales.

Finding a reason for these trends is not too difficult. Ongoing inflation concerns continue to run rampant in the world of traditional finance, making goods more expensive and keeping interest rates low or negative. 

Unfortunately, it does not appear as if the inflation concerns will disappear.

A recent CNN article confirms the current $3.5 trillion budget bill is likely to fuel long-term inflation. While US President Joe Biden claims that will not be the case, these “long-term investments” come when consumer prices spike the fastest in 13 years.

That degree of unrest will force people to explore alternative options, including Bitcoin and other safe-havens. 

How useful was this post?

Click on a star to rate it!

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com