Investing in Bitcoin has become quite a popular strategy for many wealthy entrepreneurs as it is the type of thing that could potentially bring them huge amounts of wealth. With all of that being said and now getting out of the way, it’s important to note that the folks who got into Bitcoin early had a massive advantage.
One reason is that they have been able to buy lots of bitcoins cheaply, which has led to a situation where massive wealth inequalities have emerged. A recent study conducted by the National Bureau of Economic Research found that 0.01% of all bitcoin holders own about 27% of all bitcoin, with the remaining 73% distributed among about 99.99% of the rest of the people who decided to to invest in bitcoin cryptocurrency.
The total value of their holdings is around 5 million BTC, which is currently valued at around $232 billion. When you split that across the 10,000 accounts that hold these assets, it comes to around $23 million per account, which is far more money than the average bitcoin wallet holder appears to have at any given point in time, if all Things have been taken into account and taken into account.
The thing is, most other cryptos don’t seem to have such a problem, at least so far. They tend to have a much more equitable distribution of wealth. Buying and holding crypto may be useful in the short term, but with so much wealth already concentrated, there is clearly a disproportionate power dynamic here. Bitcoin’s wealth concentration is even worse than that of the overall US economy, which is notorious for being highly unequal. There’s not much you can do about that, but knowing that inequality exists is pretty important.
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