Over the past years, many bodies have published data on massive wealth concentration in an otherwise decentralized Bitcoin network. Some of these reports have identified that less than five percent of all bitcoins addresses hold about 95 percent of all bitcoins. Research published in 2017 by How Much showed that 1 percent of those addresses had control over half of the bitcoin market.
Joining the ranks of those studies is TruStory, a platform for users to research and validate people’s claims online. The startup’s Founder and CEO Preethi Kasireddy on Tuesday shared new statistics about bitcoin’s so-called wealth disparity problems. She noted that now 2 percent of addresses control 80 percent of the cryptocurrency’s supply.
Penned by Saurabh Deshpande, an analyst at TruStory, the report derived its conclusion by using the Lorenz Curve, a graph that determines wealth inequality. Deshpande admitted that he let go off specific vital parameters that could give a better clarity over bitcoin’s wealth distribution issues. For instance, he observed that cryptocurrency exchanges held a massive number of bitcoins in their cold storage wallets. Deshpande removed those bitcoins from their addresses and mentally reallocated them in addresses holding up to 1 BTC.
“The assumption here is that people with more than 1 BTC would like to store in their hardware wallets,” he explained.
Deshpande took more liberties with data, like introducing an error into the data that considers half of the identified exchange addresses as the newly assumed exchange addresses. He also neglected data for addresses that contain 10–100 BTC, stating it was not available. His adjustments ultimately gave a presumed Lorenz Curve output, as shown below:
Bitcoin Adjusted Lorenz Curve | Source: TruStory
“Though this wealth distribution is better than the first one, I presume the reality might be slightly better,” Deshpande explained. “Despite this, the distribution is nowhere close to being ideal. I hope the scenario changes and the distribution gets better as time passes. Till then, one of the greatest threats to bitcoin is this curve.”
The TruStory’s conclusion of bitcoin wealth being hugely centralized met with criticism. Ari Paul, CIO at BlockTower Capital investment firm, said the “percent of addresses” analogy is not meaningful, considering one could create millions of new addresses with dust units in them and disturb the Lorenz Curve output further.
“The problem is that the denominator is [kind of] a nonsense number. What does the total number of addresses mean or matter?” asked Paul. “A more meaningful measure is something like # of addresses with at least 0.1 BTC. Still doesn’t tell us much, but at least here an “address” has some meaning.”
Civic co-founder & CEO Vinny Lingham, on the other hand, supported Deshpande’s report, hypothesizing that people who started mining on the Bitcoin network in its early days [probably] amassed millions of units of the cryptocurrency. It gave them adequate control over the market.
“Three million coins haven’t moved, and they are still in the hands of a few people,” Lingham asserted.
Bitcoin Price Analysis: BTC is On Price Recovery Mode; Gains 4.55% Overnight
- Bitcoin gained 4.55% in the last 24 hours and breached the resistance at 10,800 USD.
- It may soon touch 12,000 USD and further, it is likely to get a price rally before the year ends.
Bitcoin has managed to reach its first resistance point at 10,800 USD with the help of a 4.55% hike. It is likely to rise more in the coming days and by the end of this year, the coin is likely to be near 15,000 USD. In the last three months, the journey of Bitcoin was full of shocks and volatility. The coin reached its peak towards the end of June and it has been trying to reach there since then. We will now analyze the current statistics of the coin before going into details of the price movement pattern.
Bitcoin Price Statistics-
Bitcoin’s highest hike of this year has been the 85.70% hike between 04th June and 26thJune. This hike pushed the coin near 14,000 USD. From there, Bitcoin has been showing huge volatility. It was followed by a fall of almost 30% in the value against USD which deducted 4039 USD from the coin over just 5 days. After a week of growth, Bitcoin again took a dip to 9208.95 USD by 17th July. From there it has been a satisfying journey for the coin and it has risen to 12,196 USD by 06th August with the help of a 32% increase in the value. The market cap on 20th July was 186,505,443,026 USD and the value of the coin was 10,991.43 USD. The current market cap and the value of each coin are respectively 4.30 % more and 1.10 % less than the figures for the last month.
Bitcoin Price Prediction-
Bitcoin is consistently raging against 11,000 USD and the next big target should be 12,000 USD with so many little halts. But the coin is likely to get a good growth by the mid of next month. With the help of a price rally, the target of 15,000 USD by 2019 seems reasonable. The details of the resistance and support levels are given below.
|1st Resistance||11117 USD|
|2nd Resistance||11317.95 USD|
|3rd Resistance||11719.85 USD|
|1st Support Level||10514.15 USD|
|2nd Support Level||10112.25 USD|
|3rd Support Level||9911.3 USD|
Winklevoss Twins Say They’re ‘In Talks’ About Joining Libra Association
Tyler and Cameron Winklevoss — Bitcoin (BTC) bulls and founders of the Gemini crypto exchange — say they are open to partnering with archrival Mark Zuckerberg on Libra.
CNN Business reported on Aug. 19 that the twins are not allowing their notorious and drawn-outsettlement with Zuckerberg stand in the way of a potential collaboration.
In talks to join the Libra Association
Whether or not a partnership will finally materialize, Cameron told CNN that Libra represents a step towards mass adoption of cryptocurrency, underscoring:
“I think there is a day in the future where we can’t live without crypto, or imagine a world before crypto.”
As CNN notes, the twins’ proactive promotion of crypto-regulatory matters could make the duo an attractive partner for Facebook, given the widespread alarm the latter’s Libra project has already sparked among governments and regulators globally.
The twins revealed they have been in talks about joining the Libra Association — the newly-created, independent governance consortium for Facebook’s planned token — which currently counts 28 founding members and should expand to 100 by the time of Libra’s launch.
Tyler and Cameron noted, however, that they still need to learn more about the details of the project before deciding whether or not to join the Association, as well as whether to list Libra on the Gemini exchange.
The Libra Association has reportedly declined to comment on any ongoing negotiations with partners.
All the internet titans will embrace crypto
According to Cameron, Facebook may be the first tech titan to attempt a native cryptocurrency launch — but it won’t be the last:
“I think that internet companies have to have a crypto strategy, and I think a lot of them are thinking about their own coin projects. They’re probably watching Libra and Facebook to see how that fares as they develop it.”
He forecast that Amazon, Apple, Netflix and Google will follow suit, isolating Amazon in particular as a solid contender:
“Amazon can probably get packages to literally any place in the world, even if the last mile is on a dirt bike or something […] very ironic, that the physical stuff we can move all around the world and we can’t get money to a lot of places around the world.”
Earlier today, Cointelegraph reported that the design for the Chinese central bank’s planned state-backed cryptocurrency is reported to have been influenced by Libra’s unveiling.
Bitcoin Price Fails to Break Through $11K — Altcoin Bull Run Fizzles 1809
Bitcoin (BTC) price slid from levels near $11,000 Aug. 20 as momentum which sparked bullish sentiment at the start of the week fizzled.
Market visualization. Source: Coin360
Bitcoin lingers below $11K resistance
Data from Coin360 showed BTC/USD abandoning its shot at passing $11,000, having risen from levels near $10,700 on Monday.
The pair was trading back at those levels at press time, having dropped $350 over the past few hours.
24-hour gains for Bitcoin thus remained tapered at 2%, while weekly performance still revolved around an overall loss of nearly 6%.
Bitcoin 7-day price chart. Source: Coin360
Anticipation had run high as $11,000 approached, analysts rating chances for a definitive upward trend to recommence.
“I wanted to see it over $10,800 and it did close, short term bullish,” regular trader Josh Ragersummarized in his most recent update on Monday.
He added that BTC/USD remains under its weekly opening level from two weeks previously, an area which will now act as resistance.
Meanwhile, another fellow market analyst and trader, Filb Filb, was more buoyant, telling followers of his dedicated Telegram channel about the possibility of a break to $11,400.
Altcoins return to flat performance
Altcoins meanwhile failed once again to capitalize on previous gains. A look at the top twenty cryptocurrencies by market cap shows most reversing progress made on Monday, when some outperformed Bitcoin itself.
Ether (ETH), the largest altcoin, then dropped 1.6% to slide back below $200. Litecoin (LTC) dropped more at 2.3%, while XRP shed almost 5%.
Ether 7-day price chart. Source: Coin360
Only Monero (XMR) and Bitcoin SV (BSV) showed signs of life, gaining 1.2% and 0.8% respectively.
The overall cryptocurrency market cap was $276 billion on Tuesday, down $3 billion from the day before, while Bitcoin’s share remained over 69%.