(Kitco News) – Bitcoin is one of the most unevenly distributed assets in the world, with just under half a percent of all bitcoin investors owning more than 80% of all bitcoins, and if they liquidate, the market could see a substantial sale off, said Ryan Giannotto, director of Research at GraniteShares ETFs.
“It is a great challenge for the asset class: it intends to be a democratizing force financially, but it is deeply distributed unevenly. It is really unlike anything we’ve ever seen. This is one of the dangers of investing in bitcoin that is neither reported nor discussed, ”said Giannotto. “It is a class of assets seriously cornered.”
Five hundredths of a percent of bitcoin investors control more than 40% of all bitcoin, and just under half a percent of all bitcoin investors control more than 5/6, or 83%, of bitcoin, he noted.
Most of these larger stakeholders, or “whales”, as they are called in the cryptographic community, are the first to adopt bitcoin.
If those early adopters of bitcoin sold their assets together, it would exceed the daily trading volume, effectively “eliminating” the asset, said Giannotto.
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