Decide whether Bitcoin inequality of wealth distribution?

When little more than eleven years ago there was a Bitcoin, he brought with him a strange sense of justice, which is so lacking in the traditional financial system. Over time, however, the distribution of coins is increasingly exposes the gap between rich and poor. And he is still great.

Rich owners of Bitcoin

In fact Bitcoin has always suffered from the unequal distribution of coins. Although cryptocurrency has emerged as a reaction to the financial crisis of 2008 because of the greedy banks that were “too big to fail”, in the end, she was also absorbed by inequalities.

In the first years of existence of Bitcoin distribution is very tightly depended on the miners. Therefore, the Bitcoin rich were those who possessed the appropriate knowledge and resources for the production of new coins. The level of ignorance at that time was so striking that one user of cryptocurrency accidentally threw away his hard drive with private keys which are stored 7500 BTC. Today it is more than $ 70 million.

Read on: What you need to do to become a successful Hodler cryptocurrency?

However, as soon as the cryptocurrency has become more popular botany was replaced by investors. That is a gateway to the world of Bitcoin began to open by and large, only the privileged individuals with unlimited purchasing power – that is, wealthy people. So people with high income and institutional investors have taken control of the cryptocurrency and brought the wealth inequality in criptural. And it is unlikely this will ever change, because the blockchain is decentralized and operates not as a utopian state with a Communist regime.

The distribution of bitcoins and wealth inequality in the United States

So, let’s try to compare the distribution of BTC with the distribution of wealth in the US. We use the data on Bitcoin from BitInfoCharts and schedule Statista, which shows the unequal distribution of wealth in the US as of 2016. Here is the wealth inequality in the United States.

The distribution of bitcoins and wealth inequality in the United States. Source: Statista

That is, the top 1 percent richest people accounted for 38.6 percent of the capital.

But the chart below will help to visualize the distribution of coins with bitcoin addresses.

The distribution of bitcoins by addresses. Source: BitInfoCharts

Here in the top 9 percent of all bitcoins are stored 98.95.

Although these charts are purely presentational, then you should pay attention at least a few facts.

  • Statista graph based on the data on annual income, not personal capital.
  • In turn, a distribution schedule of the coins BTC is also based on individual addresses, not data about specific people.

Nevertheless it is the assertion that the inequality of Bitcoin is more pronounced. Still, the rich investors can afford to buy more altcoins, while the offer of BTC is limited to 21 million coins.

Here is the detailed distribution of coins to the addresses.

The distribution of bitcoins by addresses. Source: Bitinfocharts

It is important to consider: Owners of bitcoins has reached the stage of accumulation of cryptocurrency.

Wealth inequality in the world

We also can compare the address of Bitcoin from the point of view of the values in U.S. dollars and to compare the dispersion of savings in cryptocurrency based on a global pyramid of wealth inequality. This comparison is based on data from Credit Suisse for 2018.

The pyramid of the distribution of global wealth as of 2018. Source: Credit Suisse

As you can see, the share of BTC addresses that hold at least 10 thousand dollars, a lot more of those, the amounts of which exceed 10 thousand dollars. Again, this comparison has one big flaw, since one person can have multiple addresses.

The conclusion is obvious: Bitcoin does not eliminate the inequality between rich and poor. Yes, cryptocurrency can turn Hodler with years of experience in millionaire, but this is the exception rather than the rule. Today in the niche of the coin there is also a problem with unfair distribution of wealth: 106 richest addresses accounting for 16 percent of all existing bitcoins. Since the situation cannot be corrected, it is easier to accept.

In our cryptodata rich you will find a lot of other useful information. Also check in Yandex Zen.

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