The valuation of Bitcoin continues to increase, it is currently matching the scale of market activity, multiple indicators are indicating changes, and there is a sense of urgency in the digital asset industry. Although every part of the current Bitcoin landscape (or data) seems to be positive, it becomes a little tricky to assess the effects that may appear in the long-term after the bull market.
A recent survey by Santiment highlights an increasing indicator , the implications of which are not yet clear.
According to data from the analytics platform, even if the price exceeds its historical high, the number of Bitcoin holders with 1,000 or more BTC continues to increase. At the same time, the number of addresses with less than 1,000 bitcoins has declined because small HODLers are speculated to be cashing out profits in current cryptocurrency prices, rather than higher expectations and price levels.
At first glance, it may seem harmless to accumulate large amounts in wallets with more than 1,000 BTC, but the degree of concentration may exceed our imagination.
One of the main differences between the current bull market and 2017 is the direct participation of major financial institutions , which accumulate bitcoins in a dynamic and interesting situation, and Microstrategy’s recent interest may have paved the way for other entrants.
Now, according to the attached chart, on December 6, almost no entity held 4.20% of the BTC supply, which is a total of more than 881,953 BTC. However, this number is likely to increase thereafter, and as of press time, it may climb to close to 5-6%.
Here, the eye-catching observation is that each organization has multiple addresses with more than 1,000 BTC, as shown in the figure above, which leads to great control of Bitcoin in the hands of a few people. Over the years, it may Lead to uneven distribution.
So, should we be worried in the face of this situation?
One of the basic characteristics of Bitcoin is that its supply can be calculated in the course of its history, and unlike fiat currencies, its upper limit is limited. In this regard, Bitcoin has the most stable supply rate of all encrypted assets.
This indicator compares the average income of the richest 20% of the society with the poorest 20%. SER data is not about income, but about the supply held by different accounts in a network. It compares the poorest account (all account balances are less than 0.00001% of the supply) with the richest account (all the balances of the top 1% of addresses).
Another factor that may prevent people from accumulating large amounts of Bitcoin in the future is the price appreciation of BTC. After a few years, it will not be easy to hoard a large amount of Bitcoin because further scarcity will only increase its long-term value.
The original text comes from ambcrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
