This may be the most worried thing about Bitcoin creator Satoshi Nakamoto: the concentration of Bitcoin wealth

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This may be the most worried thing about Bitcoin creator Satoshi Nakamoto: the concentration of Bitcoin wealth

The recent Bitcoin gains of up to $42,000 were mainly driven by institutional investors who suddenly woke up and realized the long-term value potential of the asset, and their response was to buy immediately. After all, if Bitcoin eventually becomes popular, they will one day No need to pay higher prices.

Although wealthy people seeking to protect their wealth have been rewarding cryptocurrency investors because of FOMO sentiment, the continued concentration of Bitcoin and wealth may have dangerous consequences, and the creator of this asset (Satoshi Nakamoto) Efforts have been made to avoid such consequences, which is why the wave of institutional buying may not be as positive on the surface.

Wealth transfer from cash to bitcoin

Currently, the price of Bitcoin is $37,000 per coin, and there has never been a higher demand, but the world is still under the control of a global pandemic. The unemployment rate has never been higher, and ordinary everyday citizens are calling on people to provide stimulus funds to help them pay their bills or pay for food and other basic necessities.

However, more funds are flowing into Bitcoin than ever before. Unlike 2017, it is not only a retail digital asset. Some retail investors are back, but this time the price of each bitcoin is even higher, but they are not the ones who buy a large share of the cryptocurrency supply at these levels.

The amount they bought was insignificant, but it did promote the overall upward momentum, but the price increase was mainly due to the massive purchase of Bitcoin by wealthy institutional investors.

A large number of over-the-counter transactions that occurred behind the scenes have reduced the supply of goods that were in short supply in the past. It has allowed many early cryptocurrency investors and retail investors to survive the bear market, which has brought about positive changes in the global wealth distribution.

However, as the “giant whale” absorbed such a substantial share of the Bitcoin supply, this decentralized asset did not attract the attention of early supporters, who hoped that everyone would have a better financial situation.

Cryptocurrency becomes centralized

Bitcoin as a technology realizes the future of free finance, but because it is supplied in the free market (due rights), as time goes by, it will gradually be occupied and controlled by the current rich people in the world With.

The creator of cryptocurrency Satoshi Nakamoto (Satoshi Nakamoto) tried to free the world from the control of currencies by third parties. However, if most of the Bitcoin supply is owned by a few people, is the distribution of wealth affected by its original intention?

Sadly, the answer is no. Even with the recent “crash” of cryptocurrency, wallets that already have 1,000 BTC or more of Bitcoin continue to buy Bitcoin. Only those who are already rich can afford to continue to buy at a price of $35,000 each, and those who already have $35 million in a single wallet can definitely be classified as “already very rich.”

Bitcoin could have given them wealth, but when most of the supply is controlled and concentrated in the corporate treasury instead of citizens seeking financial freedom, will cryptocurrency communicators cheer for it?

More than 2,400 wallets have 1,000 BTC or more, accounting for 2.4 million of the total supply of 21 million Bitcoins. This means that only 2,400 individuals or entities have the most 10% of the scarce resources.

Although these entities have pushed up the price of Bitcoin for any preconceived cryptocurrency investor, the original intention of Bitcoin has been blurred by the concentration of the same old wealth.

Without really changing the guards, cryptocurrency will at least partially fail its original mission.

If there is no real vigilance and change, then cryptocurrency will at least make some changes to the original mission.