Tuesday, January 16, 2018

Bitcoin Q&A: Wealth distribution statistics

What are your thoughts on wealth distribution / concentration in Bitcoin? Addresses are not people! The majority of addresses are used anonymously / pseudo-anonymously, so clustering is very difficult. Exchanges or payment processors may be holding the funds of hundreds of thousands of people in only a few addresses; at the same time, a single person could be controlling thousands of addresses with very small amounts, or a single address may be a multi-sig that is controlled by more than one person. Cryptocurrencies in general do have poor Gini coefficients (i.e. unequal distribution) when compared to society as a whole, especially because we are still in the very early stages of adoption. However there is no sound evidence to support most of the internal wealth distribution statistics being published in the media. The implications of large numbers of bitcoin being held in very few addresses has greater implications for the storage security of custodians -- and the risk of an expensive hack -- than it does for wealth distribution. RELATED: Investing in Education Instead of Speculation - The 21 million supply cap - How long until mainstream adoption? - How do I choose a wallet? - Hyperbitcoinization - The Stories We Tell About Money - How much bitcoin do you have? - HODLing and the "get free" scheme - Separation of money and state - How do I secure my bitcoin? - Hot vs. cold wallets - This was part of the first monthly live Patreon Q&A session on November 27th, 2017. If you want early-access to talks and a chance to participate in the monthly live Q&As with Andreas, become a patron: Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and respected figures in bitcoin. Follow on Twitter: @aantonop Website: He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters. THE INTERNET OF MONEY, v1: [NEW] THE INTERNET OF MONEY, v2: MASTERING BITCOIN: [NEW] MASTERING BITCOIN, 2nd Edition: Music: "Unbounded" by Orfan ( Outro Graphics: Phneep ( Outro Art: Rock Barcellos (


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Item Reviewed: Bitcoin Q&A: Wealth distribution statistics Rating: 5 Reviewed By: BUXONE