Research: Private investors own only 14% of bitcoin addresses
A recent study by New York-based blockchain analyst firm Chainalysis showed that only 14% (25 million) of bitcoin addresses are controlled by private investors, while the rest are owned by various services..
“147 million (86%) of the 172 million economically relevant addresses belong to various services such as exchanges or darknet markets,” the analyst firm said..
The bitcoin blockchain has more than 460 million addresses, but only 37% of them are economically relevant. Read more in our research
Chainalysis analyzed all the bitcoin addresses created to date (460 million) and found that economically relevant – i.e. those controlled by the people or services currently owning bitcoins are only 172 million of them. However, only 27 million of these addresses have any amount of bitcoins..
“… only 37% of them are economically relevant. We found that 86% belong to services. The remaining addresses are used as ancillary tools for making payments, which means that the actual transaction value of the bitcoin network is only 20% of the nominal, “- notes Chainalysis.
The cryptography method used in the bitcoin network makes transactions more complex than digital fiat currencies. The process of transferring transactions in it is associated with the creation of many addresses, serving as “connective tissue”, where bitcoins are stored only for a short time – usually less than a day.
“They are used, as a rule, only once, and bitcoins are stored there for a very short time. For example, three quarters of addresses store bitcoin for less than a day. Most of them are either exchange addresses or "connective tissue", which means they store bitcoins for a very short time to facilitate payments between people and services, ”says Chainalysis.
Last year, Chainalysis reported that about 4 million bitcoins were lost forever. In addition, another study was published in the summer, according to which 1% of bitcoin holders own more than 34% of all bitcoins in circulation..
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