(Kitco News) – Bitcoin is one of the most unevenly distributed assets in the world. Almost half a percent of all Bitcoin investors own more than 80% of all Bitcoins. Should a liquidation occur, the market could see a significant sale. Off, said Ryan Giannotto, director of research at GraniteShares ETFs.
“It’s a big challenge for the asset class: it’s supposed to be a financially democratizing force, but it’s so unevenly distributed. It’s really unlike anything we’ve ever seen. This is one of the dangers of Bitcoin investing that is not reported or discussed, ”Giannotto said. “It’s a seriously cornered asset class.”
Five hundredths of a percent of Bitcoin investors control 40% of all Bitcoin investors, and just under half a percent of all Bitcoin investors control 5/6 or 83% of all Bitcoin investors.
Most of these larger interest groups, or “whales” as they are called in the crypto community, are early adopters of Bitcoin.
If these early adopters of Bitcoin were to sell all of their holdings, it would exceed the daily trading volume and effectively “wipe out” the asset, Giannotto said.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided. Neither Kitco Metals Inc. nor the author can guarantee this accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no liability for any loss and / or damage that might arise from the use of this publication.