About 11,000 entities represent 55% of the Bitcoin network volume

About 11,000 entities represent 55% of the Bitcoin network volume
The report also found that 10% of all Bitcoin miners control 90% of the network hashing speed.

Researchers have found that around 11,000 entities account for more than half the volume of the Bitcoin network.

According to a study published by the National Bureau of Economic Research (NBER) on October 21, 11,043 on-chain entities account for 55% of the volume on the Bitcoin network. It is estimated that cryptocurrency exchanges account for 75% of the online volume.

The report found that the top 1,000 investors control roughly 3 million BTC or 16% of the circulating Bitcoin, while the next 9,000 largest investors together own around 2 million BTC which is around 10% of the circulating Bitcoin.

The authors of the report conclude that the BitCoin network remains highly centralizeddespite the rise of new investors lured by the BTC boom in 2021, stating:

“The Bitcoin ecosystem is still dominated by large and concentrated players, be it large miners, Bitcoin holders or exchanges.”

However, the study also noted that individual Bitcoin holders currently represent 8.5 million BTC which is 45% of the supply.

The NBER has also identified a significant concentration in the Bitcoin mining sector, estimating that the largest 10% of miners control 90% of the global hashrate. The report added that around 50 miners (around 0.1% of the network) control 50% of the total hashing power of the Bitcoin network.

While the NBER claims that centralized hashing speed exposes the Bitcoin network to a significant 51% attack risk, the report does not present a hypothetical situation where the best miners in the world would be encouraged to attack the network.

According to Cambridge University’s Bitcoin Electricity Consumption Index (BECI), global computing power distribution has changed significantly since September 2019 – when China’s share peaked at 75.5%

While China’s re-cracking of domestic Bitcoin miners has been credited with contributing to the recent exodus of miners looking for cheap electricity in North America, Central Asia and Eastern Europe, BECI data suggests that Chinese hash power had already dropped 40% ahead of the April cap.

27-10-2021, Mr.Advice TEAM


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