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Bitcoin wealth more evenly spread with smaller accounts, report

Thursday 17 September 2020 13:19 CET | News

Coin Metrics has released a report regarding Bitcoin (BTC) and its decentralisation process, which ‘encompasses a large number of loosely-coupled characteristics.’

During its 11 years of existence (since the first Bitcoin block was mined), BTC has been able to survive mainly because there’s no single entity controlling it. The distribution of wealth is one of the key factors in any type of economy. The level of wealth distribution should determine the degree of economic influence that individuals or organizations might have. For digital assets, which have granted relatively large token allocations to the founders of such projects, it’s an underexplored aspect of so-called decentralised cryptographic currencies, according to crowdfundinsider.com. 

The distribution of hashpower or the amount of computing power securing a digital currency network could be an even more important factor to consider when analysing crypto platforms. Bitcoin ‘relies on decentralisation at this level in order to meet its goals of sustaining a secure, censorship-resistant payments and savings system,’ as stated by the report from Coin Metrics.

The report further notes that the presence of whales (crypto investors with very large amounts of digital assets held in their wallets) remain a concern for ‘the viability of many cryptocurrencies.’ An ‘unequal distribution of funds’ may lead to a relatively small number of users exercising too much influence over a crypto-asset’s markets and its ongoing protocol development. 
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Keywords: Bitcoin, BTC, accounts, report, Bitcoin block, mining, control, wealth distribution, token, digital assets, decentralisation, crypto currency, hashpower, whales, digital currency network, Coin Metrics, crypto platforms, payments and savings
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: World
This article is part of category

Blockchain & Cryptocurrencies