The researchers found that about 11,000 units accounted for more than half of the Bitcoin (BTC) chain’s volume.
According to a study published by the National Bureau of Economic Research (NBER) on Thursday, 11,043 units in the chain represent 55% of the volume of the Bitcoin network. It is estimated that cryptocurrency exchanges account for three quarters of the chain’s size.
The report found that the largest 1,000 investors control nearly 3 million bitcoins, or 15.9% of bitcoins in circulation, while the largest 9,000 investors own nearly 2 million bitcoins, or 10.6% of bitcoins in circulation.
The authors of the report concluded that the network remains highly centralized despite the growth of new investors attracted by the BTC beef market in 2021, and stated:
“The Bitcoin ecosystem continues to be dominated by large and focused players, whether they are major miners, bitcoin holders or stock exchanges.”
However, the study also notes that individual bitcoin holders currently account for 8.5 million bitcoins, or 45.1% of the supply.
NBER also revealed a significant concentration in the bitcoin mining sector, where an estimated 10% of miners control 90% of the global hash rate. The report added that about 50 miners (about 0.1% of the network) control 50% of the total hash power of the Bitcoin network.
While NBER claims that centralization of hashes puts the Bitcoin network at a significant 51% risk of attack, the report does not assume that the world’s top miners would be interested in attacking the network.
On the topic: Investors Owning Bitcoin Triple Since 2018: Gallup Poll
According to the University of Cambridge’s Bitcoin Electricity Consumption Index (BECI), the global distribution of cannabis power has increased dramatically since September 2019, when China’s share reached 75.5%.
While China’s renewed attacks on local bitcoin miners have led to the recent exodus of miners searching for cheap electricity in North America, Central Asia and Eastern Europe, BECI data suggests that the power of Chinese cannabis has already waned. 40% before the April crash.