The Blockchain information platform Chainalysis has published a revealing new study in its blog. It can be seen that the so-called “Bitcoin whales”, ie people or group, which have large amounts of Bitcoin, are a surprisingly diverse group. The study also shows that whales are probably more beneficial to the market than harm.
Many investors have long been concerned that a market situation could arise in which the whales have an overwhelming influence on the Bitcoin course. This fear stems from reports suggesting that whales are selling large quantities of their bitcoin, sending the price spiraling.
However, these fears may be unfounded. This gives a closer look at the largest Bitcoin wallets. The data from Chainalysis show that the Bitcoin whales are a rather heterogeneous group. More than half of them are not active traders. It is also interesting that only a few of them have the opportunity to influence the market. In addition, they tend to buy in a fall, not to sell. You also have to keep in mind that these investors are professionals. For retailers, they use off-exchange platforms that can handle their transaction volumes while only moderately influencing the price.
Chainalysis found out that the 32 largest Bitcoin wallets together have about 1 million Bitcoin. This refers to the status of August 2018 and only applies to wallets that are not stored on crypto exchanges. Depending on their properties, Chainalysis has categorized these wallets into categories. The categories are named “Trader”, “Miner / Early Adopter”, “Lost” and “Criminals”.
The Trader group has nine wallets that together control over 332,000 bitcoins. So that would be about one third of the total amount of bitcoin in the hands of the whales. The traders are mostly newcomers in the crypto sector and only came to the Bitcoin world in 2017.
Then comes the second largest group, the Miner / Early Adopter . They were already on the market before the traders. This group consists of 15 wallets, which together also account for about 332,000 bitcoins. The owners of these wallets are already in 2016 and probably very rich.
The “Lost” are the third largest group in the investigation. They have a total of about 212,000 Bitcoin. However, these wallets have long shown no transaction activity, in some cases since 2011 not more. That may be because the owners have lost their private keys or died without leaving the keys. In both cases you can no longer access the wallets. So these bitcoins should be lost.
Finally, there is the group of “criminals” . This includes only three wallets that together control over 125,000 bitcoins. Two of these wallets have links to the former Darknet trading post, Silk Road, and the third wallet seems to be about money laundering.
It should be noted that only about a third of the whales are active at all. The “lost” Wal-Wallets are expected to remain inactive. It turns out that the influence of whales is smaller than previously thought. Also, a whole third of whales buy Bitcoin rather than sell it. Contrary to the claims, the whales do not weaken the Bitcoin price as a whole, but rather stabilize it.
Sources: Insights, Bloomberg, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/neue-studie-bitcoin-wale-schaden-dem-bitcoin-kurs-nicht-sondern-stuetzen-ihn/
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