Small wallet addresses, containing 0.1 Bitcoin or more, continue to accumulate Bitcoin at a rapidly increasing rate.
Over the past week, the number of Bitcoin wallet addresses holding one BTC or more increased by 13,091. The total number of “whole coiners” increased to 865,254.
The number of full coins spiked during the downside price action, according to analysis by Glassnode.
Christian Ander, the founder of Swedish Bitcoin exchange BT.CX, told Cointelegraph that “it’s good for the ecosystem that it’s growing from scratch because it wants the economy to be bottom-up.” Anderson continued stating that, “people strongly believe in the future of the Bitcoin network and the value of the currency.”
BTC Updates
In the last 10 days, since the May 10 market crash to $30,000, more than 14,000 “whole coiners” wallets (with one BTC or more) have joined the network. Since there will only be 21 million Bitcoin minted, these wallet addresses will hold one twenty-one millionth of all Bitcoin.
At a price of around $20,000 per Bitcoin, the sharp increase in the number of whole coiners would suggest that retailers – or “commoners” as they are affectionately known – are buying Bitcoin as fast as their income allows. The number of addresses adding 0.1 BTC ($2,000) or more has also started a parabolic run in the last 10 days.
In contrast, the number of wallets holding more than 100 BTC has dropped by 136 over the same period. By inference, “whale” wallets (large BTC addresses) could be shedding some of their holdings.
A Bit of History
When Satoshi Nakamoto minted the first Bitcoin on January 9, 2009, the Gini coefficient was 1, that is, income inequality in the network was the highest in history. The Gini coefficient, developed by the statistician Corrado Gini, represents income or wealth inequality within a social group. In Bitcoin, it can be assigned to wallet addresses.
As soon as Hal Finney, the first Bitcoin believer, started mining and receiving Bitcoin, the Gini coefficient dropped below 1. Since then it has tended to go lower and lower, indicating that the distribution of wealth in the Bitcoin network Bitcoin is becoming fairer.
It is worth remembering that when the first BTC was sent, there wasn’t even a cash value attached to the crypto asset, whose Blockchain has amassed more than 701 million transactions as of January 8. One of the most famous early use cases – exchanging 10,000 BTC for two pizzas in 2010 – helped pave the way for the crypto asset to become accepted in many bars, restaurants, and even as legal tender across a country such as El Salvador.
Currently, according to experts, while the data does not negate that BTC could see a further price decline, it also suggests that the worst of the pullback has already occurred and the current extreme lows are unlikely to persist in the long term.
By Audy Castaneda
