Since the inception of Bitcoin, there have always been concerns over how early adopters hoarded a lot of BTC. Current statistics by Glassnode confirm this is not the case. Everyday people like you and me own the majority of coins.
Early Adopters Hold Less BTC
It is not entirely shocking to see how the current Bitcoin wealth is divided. Those who got in early will often have a competitive advantage. Whether that still applies to a project 12 years old is a matter of personal conviction. If one was lucky or smart enough to get thousands of BTC before it even had an exchange and still has access to the funds, things are certainly looking up.
For everyone else, however, there is no reason to panic. Statistics by Glassnode confirm whales and custody providers represent just 21% of the circulating Bitcoin supply. To most people, this number will be a lot lower than initially expected. Considering how Bitcoin goes through a block reward halving every four years, whales have had multiple opportunities to stack big.
Going further down the list, miners hold roughly 10% – including the funds attributed to Satoshi Nakamoto. Again, a statistic that is likely to surprise a lot of people. Exchanges own 13% of the coins, but a combined 130 million users hold those funds. There is no centralization or concentration of BTC holdings to speak of.
For the remaining 56% of circulating BTC, they are in the hands of everyday people. More specifically, people who do not fall into any of the three other three categories. A clear validation that early adopters are not the ones controlling the most bitcoin. Instead, the supply continues to be distributed further as more time progresses. A promising sign for the network, as distribution is crucial.
Exchange Balances Continue To Decline
A while ago, BlocDesk reported how there were fewer and fewer BTC on exchanges. That trend continues today, as fewer people want to sell, even at the current price. Bitcoin provides financial freedom and an alternative to a broken financial system. Converting to fiat currencies equals taking three steps backward to move half a step forward.
There is still too much BTC on exchanges right now. Nearly 2.34 million bitcoin are up for grabs at the time of writing. A steep decline compared to over 2.9 million in March of 2020. However, there is still a long way to go before any “scarcity” can become a real factor.
The inverse correlation between BTC on exchanges and the current Bitcoin price is rather interesting. It is another sign of how early adopters may have sold already, and market pressure is easing up. Whether that means the BTC price will move up sharply remains unclear. A price target of over $60,000 remains plausible, given the current momentum.