0.01% of Bitcoin holders controls 27% of the "currency"/property in circulation

Discussion in 'Crypto Assets' started by Nighthawk, Dec 20, 2021.

  1. Nighthawk

    Nighthawk

    For the less informed: Bitcoin is not a legal tender - has never been. It is regarded by IRS as "property":

    https://www.irs.gov/irb/2014-16_IRB#NOT-2014-21

    SECTION 4. FREQUENTLY ASKED QUESTIONS

    Q–1: How is virtual currency treated for federal tax purposes?

    A–1: For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency.
    _______________________________________________________________________

    Bitcoin’s ‘One Percent’ Controls Lion’s Share of the Cryptocurrency’s Wealth

    New research shows that just 0.01% of bitcoin holders controls 27% of the currency in circulation

    https://www.wsj.com/articles/bitcoi...lth-11639996204?mod=lead_feature_below_a_pos1

    .....
    The ramifications of that centralization are mainly twofold, the paper argues. First, it makes the entire bitcoin network more susceptible to systemic risk. Second, it means the majority of the gains from the rising price and increased adoption go to a disproportionately small group of investors.

    “Despite having been around for 14 years and the hype it has ratcheted up, it’s still the case that it’s a very concentrated ecosystem,” Ms. Schoar said about Bitcoin.

    And yes, BTC is the most easily manipulated market...ask the 0.01% holders....;=)
     
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  2. virtusa

    virtusa

    Instead of decentralized, it is centralized.
     
  3. maxinger

    maxinger

    This is very scary news for the politicians, Feds, central banks ....

    soon Bitcoin will drop from 5 digits to 4 to 3 to 2 to 1 to 0.1 to 0.01 ....

    But it is good news for the traders as we are waiting very patiently for the
    mother-of-all-Tulip-Mania.


    We are waiting very patiently to press the SELL BITCOIN button.



    upload_2021-12-20_23-29-51.jpeg
     
  4. It's funny whenever someone clueless brings up the "tulip mania" since if anyone does any research you can see it only lasted 3 years.

    Bitcoin is now over 10 years. Where's your crash at? I honestly hope it does go to .01 because then I could stock up again.
     
    johnarb likes this.
  5. maxinger

    maxinger

    no one knows when is the next Tulip mania.
    It may happen a few months later, a few years later, or not in this generation.

    If it happens in this generation, then that will be a wonderful half a century experience.
    If not, not a big deal.
     
    Last edited: Dec 20, 2021
  6. ZBZB

    ZBZB

    Tulip mania was not even six months.
     
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  7. It is impossible to infer these things from looking at the blockchain. The study is bunk.
     
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  8. ph1l

    ph1l

    @Trader Curt is correct.
    https://www.investopedia.com/terms/d/dutch_tulip_bulb_market_bubble.asp
     
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  9. ZBZB

    ZBZB

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  10. Great idea...

    [​IMG]

    Yeah, 3 months, not 3 years, but 3 months, and people have the nerve to compare this to something that has been out for a complete decade. And it looks like it went from 10 to 200, which was only 20x.

    Bitcoin from 3 thousand, if you want to get technical it went from 25 cents to what it is now.

    I do however find it very ironic that stocks even existed in the 1600s. Computers didn't even come out until the 90s.

    Interesting, you must live a sad miserable life if a wonderful experience to you is seeing millions lose money.
     
    Last edited: Dec 20, 2021
    #10     Dec 20, 2021
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