• The top 10,000 Bitcoin investors control one-third of the total supply.
• Satoshi Nakamoto holds 5.2% of the supply.
• Coinbase listed this factor as a risk to its business on its S-1 form when it went public in April 2021.
Large Holders of Bitcoin
Bitcoin is often seen as a decentralised asset, yet large amounts are controlled by a select few. The top 114 addresses hold nearly 3 million BTC, equivalent to 15.5% of the total supply – with anonymous founder Satoshi Nakamoto holding 5.2%. These large holders can cause serious stirs should these coins ever hit the market all at once and were even listed as risks to Coinbase’s business on its S-1 form when it went public in April 2021.
Top 10,000 Bitcoin Investors Control One-Third Of Supply
A study by the National Bureau of Economic Research outlines that the top 10,000 bitcoin investors control one-third of the total supply – likely an understatement since it cannot rule out some wallets may contain more than one person or entity. This means that despite being a decentralised asset, significant portions are still held by a small group of individuals or entities with potentially serious implications for Bitcoin’s price and adoption if they ever decide to sell off their holdings all at once.
The most obvious large holder is anonymous founder Satoshi Nakamoto who possess approximately 1 million bitcoins from the early days – equivalent to about 5.2% of the total supply which is an incredibly large amount for any single entity or person to hold over such an influential asset class like Bitcoin. Nobody knows who Nakamoto is making them an unknown risk factor and these coins could easily be lost forever due to lack of access or information regarding their identity and whereabouts.
Coinbase Risk Factor
Coinbase even listed this factor as a risk to its business on its S-1 form when it went public in April 2021 citing “the identification of Satoshi Nakamoto, the pseudonymous person or persons who developed Bitcoin, or the transfer of Satoshi’s Bitcoins” as potential risks for both Bitcoin and Coinbase’s overall business model moving forward .
While decentralisation has been touted as one of Bitcoin’s key features, ultimately it is still under pressure from those entities that possess significant amounts – whether known or unknown – which could have wide ranging impacts should they choose to sell off their holdings all at once or at least partially influence prices depending on how much they own cumulatively compared with other investors and traders in circulation today .