The problem of Bitcoin is connected with the distribution of wealth. What is it?

Recently, the whales have become frequent guests of the market of Bitcoin, and moving huge volumes of top cryptocurrencies between exchanges and thereby urging the community interest. Large movement pulls all the attention and shape the market sentiment, while simultaneously pointing to suspicious activity. While another important segment of the wallets go unnoticed, because their owners do not have an impressive amount of BTC.

A recent report by cryptoanalytical firms Longhash indicates noticeable divergence of the mass Bitcoin addresses with a small amount of cryptocurrency, which creates a kind of bottleneck in the ecosystem. The report, citing data from BitInfoCharts detailed that more than 18 million BTC addresses stored amount from 1 dollar to 100 dollars.

And according to the statements of Longhash, the cause of such bottlenecks may be inherent in digital assets “transaction fee”.

Given the current size of the transaction fees, many users are hesitant to send some amount of Bitcoin.

Over the past few months, the amount of the transfer fees has significantly increased.


In addition, according to the report, the third of the wallets — or about 6.1 million addresses — is stored in BTC amounts from 100 to 1000 dollars. As for the wallets with savings in the range of 1000-10000 dollars, they turned out to 2.29 million. Finally, Bitcoin addresses, which are coins equivalent of more than 10 thousand dollars, counted 541959 units.

Source: Longhash

Although such distribution may be a positive sign that Bitcoin is not only suitable the rich, high transaction fees can become a barrier to hontarov in small amounts.

The report also says that earlier this year, the transaction fees were quite low. In this regard, the Bitcoin began to be regarded as an”effective tool for daily payments”. However, with increased activity against the background of rising coin prices began to rise and the Commission. By mid-year, the value of the priority of transactions reached 2.54 dollar.

Why is that bad?

Regarding the importance of balance transaction fees in the overall picture of Bitcoin, the report says.

Transaction fees act as incentive for the miners, which play a functional role in control of Bitcoin. First and foremost, they are determined by the factors according to the type of congestion of the Bitcoin blockchain at the time of the transaction.

The fixed structure of the counting Commission, is bound by this factor, produces a bias. On the one hand whales, for which a similar fee for the transfer of huge amounts seem minimal. With other holders small wallets, which cease to use Bitcoin because of the increased fee.

According to the report, despite the huge number of addresses, which are the money, afraid of the fact that “many of them are unlikely to be able to use the money because of the current level transaction fees”.

Thus, a large number of small holderof Bitcoin reveals the scalability problem, solutions which don’t and no. They would make Bitcoin more suitable as a minimum during periods of high fee.

The current rate of coins you can see in our class ranking cryptocurrencies, and in cryptodata of hontarov there are still a lot of other useful information.

Subscribe to our channel in the Telegram. Here soon!

Leave a Reply

Your email address will not be published. Required fields are marked *