My legitimate concern with Bitcoin

in #bitcoin7 years ago (edited)

Here is something that I've been looking into for a little while that has me a bit concerned about how "free from manipulation" Bitcoin really is. Most people that invest in Bitcoin probably don't know this, but 1% of the Bitcoin community controls 99% of the Bitcoin wealth, so that means that 99% of the community controls 1% of the wealth. Here are two links with more info about it, if you do a search you can find a lot more

https://www.cryptocoinsnews.com/1-bitcoin-community-controls-99-bitcoin-wealth/

https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html

The biggest Bitcoin owner is Satoshi Nakamoto who invented Bitcoin and he owns over 1 million Bitcoins which is about 5% of the Bitcoins. Nobody knows who he, she or they are and nobody knows their motive, but with that much ownership, they have a lot of control and can cause a lot of harm to the community if that's their motive. The 2nd biggest owner is the FBI, yes the FBI. After they seized Bitcoin from the Silk Road, they became the 2nd biggest owner of Bitcoin. 

To put things in perspective if we try to look at how many dollars there are, using M3 money supplies, there are about $75 trillion dollars. So if Satoshi owned 5% of dollars, he would've owned 3.75 trillion dollars. If 1% of the dollar owners owned 99% of the dollars, than that would mean they own $74.25 trillion dollars and the 99% would own 0.75 of a trillion. Hmm. don't we have something similar going on right now where 1% of the population owns most of the wealth, so I don't see how Bitcoin is much different.

Today's price of Bitcoin is almost $5000 and since most of the big players are not touching their Bitcoins right now, the price is set by the 1% of Bitcoins getting shuffled around. The the price swings could be very wild because of low liquidity and today's price does not reflect the actual value, since most of the Bitcoins are sitting dormant. 

Not sure about you, but knowing that such a small  percent of Bitcoin owners controls 99% of Bitcoin, it doesn't seem like a great "store of value" as some say it is. If Satoshi or any of the big players decided to sell a fraction of their Bitcoins, this would crash the market.

I haven't looked at the other cryptos to see the wealth distribution, so I can't comment on any of those, but I would feel more comfortable if the currency was spread out more evenly among everyone that owned it. Knowing who the inventor is, would make me feel more comfortable as well. 

Would love to hear other's options about this

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