Retail Helps Distribute The Bitcoin Supply

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The below is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

Retail Holds 14% Of Supply

One of the most common Bitcoin fear, uncertainty and doubt (FUD) critiques is that the majority of supply is heavily concentrated in the hands of the few. Like every financial system or asset class that exists today, there is some truth to that type of distribution but it’s almost always exaggerated in Bitcoin’s case.

Bitcoin’s share of supply held by estimated retail individuals has been taking more share of the network every year. It’s one of the only assets in the world where anyone with an internet connection and a smartphone can obtain, having incredibly low adoption friction for the common individual.

Many critics cite an address chart like this one and call it truth. The truth is that tracking supply distributions across addresses is incredibly nuanced and it’s a key reason why Glassnode has used a suite of heuristics and clustering algorithms to estimate entities, rather than addresses, on the network.

What Glassnode found in their analysis a year ago, is that:

“We can derive that around 2% of network entities control 71.5% of all Bitcoin. Note that this figure is substantially different from the often propagated ‘2% control 95% of the supply.’”



Source link Bitcoin Magazine

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