Thursday, January 14, 2021

Bitcoin Jugaad: Part 2: It is not a democratic world. It is very aristrocratic!! It is also a dangerous world!!!(Day 13)

Bitcoin Jugaad: Part 2. (Numbers when Bitcoin was valued around $35k)
After doing some research, it seems like bitcoin is definitely an aristocratic society. It is touted as some euphoric currency but it seems like some tulips, or rare artwork, which is actually concentrated in few hands!
Some interesting stats about Bitcoins! 

  1. Looks like there are 25 BitCoin Billionaires in the world! The largest holder has $5 billion-plus in bitcoins!!!
  2. Top one-half percent of bitcoin holders collectively hold around 85% of the bitcoins as of today (Jan 14, 2021!)


  3. The bottom half, the bottom 50% of the bitcoin accounts, holds .02% of the total bitcoins! In other words, the top/ richest bitcoin holder in the world single-handedly holds 38times (3800%) more bitcoins than the bottom 17 million accounts (17032378 accounts to be sure!) together!
  4. 75% of the bitcoin accounts have less than $400 worth of bitcoins in their accounts!
  5. There are 83,484 bitcoin millionaires in the world, out of that 6,774 are super millionaires, with more than 10million dollars worth of bitcoins in their wallets
  6. 15 of the 25 bitcoin billionaire accounts have no traceable sales or outgoing bitcoins. Seems like they are just holding them, without ever selling. (This is based on the accounts so we are not sure if they have multiple accounts and what they are doing in other accounts. This analysis is only at the bitcoin account/wallet level!)
  7. All 25 top bitcoin holders have more purchase transactions than sell transactions. This means they are collectively buying more bitcoins than they are selling. This means the concentration of bitcoins is happening at the top! Probably, this is the reason why bitcoin prices are going up and will continue to go up until these top holders start cashing out.
  8. Out of the top 100 bitcoin wallets, almost 67 accounts have not made a single sell! They have just bought the bitcoins without ever selling one! 
    (Think for a minute: who are these holders who don't need to withdraw any amount. They just keep adding. This means they have some other avenue from where they keep getting money in USD, EUR, or some other currency but they choose to save in Cryptos. Sounds to me, more like profiles of drug-dealers, mafias, dictators, corrupt politicians, tax-avoiders, and black marketers.)
  9. The top bitcoin holder account sold around 40% of the bitcoins between August to November of 2020. If this sale was not made, the account worth would around $10 billion dollars.
  10. #6 in the top holders is a story from rags to riches! He has no outgoing bitcoin transaction. He has no new purchases either. The initial value of the account was around 50k dollars, and today the value is more than $3,000,000,000! He has just held on to his bitcoins over the last 9 years. No new purchase or no sales!
Isn't this an example of a great aristocratic society? The bitcoins are definitely not with masses, nor they seem to be for masses! Few folks who seem like modern-day Robinhoods and are out there to share the wealth with you by recommending cryptos, I think they are more likely to rob you in the end!
You are warned!

All thoughts are my person. Probably, I just don't understand this world.

(Source of data: https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html)


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