One of the biggest reasons why many started believing in crypto in the first place, was wealth inequality. Wealth inequality has only gotten worse with time. In fact, it’s gotten so bad that most people are in denial about the issue.
Cryptocurrencies were supposed to solve that issue, but a recent study by Chainalysis proves it’s alive and well in the crypto sphere. The study shows that a mere 376 people own more than 30% of the available Ether. Things with bitcoin are going towards the same path as 448 people currently hold 20% of the available currency.
The so-called crypto whales mostly made their investments between 2009 and 2011. Despite having a large amount of the currency, the crypto whales don’t really affect the price. This is mainly because the majority of crypto whales don’t trade, they HODL.
Research also shows that Ethereum whales sometimes move huge amounts of Ether from private wallets to exchanges. This results in a very slight increase of market volatility for the cryptocurrency. If the bull run began a few months earlier, Chinalysis researches would have had more accurate data.
Ethereum might be the 2nd biggest cryptocurrency, but it falls way behind bitcoin when it comes to market adoption. Back in the end of 2018, there were roughly 50 million Ethereum wallets compared to 460 million ACTIVE from bitcoin. From the 50 million Ethereum wallets, a little more than 300K were active.
Wealth inequality must be dealt with before it reaches fiat levels
Ethereum is slowly but surely, reaching a more mature stage of market adoption. In time, many more small wallets will find their way into the blockchain. Most experts believe that the Ether distribution will flatten naturally during this period. The information revealed by Chinalysis, speaks well for the investment potential, but not so well for the small investors.
Most expectations point out to Ethereum reaching $300 since every time bitcoin goes bullish, altcoins hitch a ride on its back. Currently, Ethereum currently sits just over $235.563 following the slowdown of bitcoin.
It would be great to see someone from the crypto community to address the issues with crypto whales. Wealth inequality will not be fixed if fiat is replaced by crypto and the greedy people on top just get new names and faces.
You can also check out:
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- Indian Supreme Court Slams the Reserve Bank of India Over Crypto Ban - Aug 23, 2019
- PBoC and its New Currency Can Take Business From Chinese Giants - Aug 22, 2019
- World Bank Raises $33 million for Kangaroo Bond Only Via DLT - Aug 22, 2019
- PlusToken Exit Transactions Totaled 22493 Bitcoins or $2.9 billion - Aug 21, 2019
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