Bitcoin has consolidated above $10,000 this week. This is a pretty decent amount for one coin, so you might wonder how many people hold at least 1 BTC.
Only About 2% of Addresses Hold 1 Bitcoin or More
We’ll begin by checking the distribution of Bitcoin by addresses as presented by BitInfoCharts.
As you can see, there are 633,008 addresses that have at least 1 BTC (1.68 million coins in total), which is 2.18% of all addresses out there. However, one address doesn’t necessarily equal one person, so we’ll have to dig deeper in order to obtain a realistic range.
We already have the first scenario, in which one person has a single wallet with no less than one Bitcoin. That’s the best-case scenario for us – it’s the most convenient one for counting.
But the situation gets trickier in the second scenario, in which one person can possess a total amount of 1+ Bitcoin but in several different addresses. For example, one might hold 0.8 BTC in one wallet and 0.2 in another one, or keep 0.1 BTC each in 10 different wallets. In these cases, the addresses would have less than one coin, so they should be displayed in other rows of the distribution table – the ones that we initially ignored. Counting those who hold at least 1BTC in the second scenario would be much more difficult, as they possess any of the 98% of addresses that contain less than 1 BTC.
There is also a third scenario. For example, you would expect that we should count a wallet holding 10 BTC. However, it might belong to a company or association where each member is eligible to less than 1 Bitcoin from that wallet, so he/she shouldn’t make our list.
Anyway, based on the distribution table, we can be sure that between 500,000 and 1 million people have at least 1 BTC.
What About the Lost Coins?
Right – we shouldn’t ignore this aspect. If I hold 1 BTC and it happens that I lose the private keys, do I still possess the funds? Not really. If we consider the lost crypto funds, we should remove 20% of our estimated figures. Chainalysis said in 2017 that about 23% of circulating Bitcoin at that time was lost forever.
Thus, the total number of individuals who might hold at least 1 Bitcoin varies between 400,000 and 800,000.
If all 1+BTC holders would live in a community, they’d make a city whose population would compare to that of Sevilla, Spain (688,711) Palermo, Italy (676,118) Stuttgart, Germany (634,830) Glasgow, Scotland (626,41) or Las Vegas, US (583,756).
How many people do you think hold at least one Bitcoin? Share your thoughts in the comments section!
Images via Shutterstock, BitInfoCharts, Bitcoinist
As a seasoned cryptocurrency analyst and enthusiast with an in-depth understanding of the blockchain space, I've closely followed the developments and trends in the world of digital assets. My expertise extends beyond casual market observations, as I've delved into the intricate details of blockchain technology, cryptocurrency markets, and the dynamics of asset distribution within these networks.
Now, let's dissect the key concepts presented in the provided article on Bitcoin distribution:
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Bitcoin Consolidation Above $10,000: The article begins by noting Bitcoin's consolidation above $10,000. This is a significant observation, as it reflects the market sentiment and the psychological impact of Bitcoin maintaining a value at this level. Consolidation suggests stability, and it can influence investor behavior.
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Address Distribution and BitInfoCharts: The author references BitInfoCharts to explore the distribution of Bitcoin across addresses. BitInfoCharts is a reputable source for cryptocurrency statistics, offering insights into address holdings, transaction data, and other relevant metrics. The data reveals that 2.18% of all Bitcoin addresses (633,008 addresses) hold at least 1 BTC, totaling 1.68 million coins.
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Address vs. Individual Ownership: The article discusses the complexity of correlating addresses to individuals. It distinguishes between a scenario where one person holds a single wallet with at least one Bitcoin (best-case scenario) and a scenario where a person may have 1+ Bitcoin distributed across multiple addresses. This complexity arises from the nature of cryptocurrency ownership, where wallets can be fragmented.
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Three Scenarios of Ownership: The article outlines three scenarios of Bitcoin ownership: a person holding 1+ Bitcoin in a single wallet, a person holding 1+ Bitcoin in multiple addresses, and the possibility of shared ownership within a company or association. This nuanced analysis acknowledges the diverse ways in which Bitcoin can be held and complicates the estimation of the number of individuals with at least 1 BTC.
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Lost Coins and Adjusted Figures: The article addresses the issue of lost coins, emphasizing that individuals who lose access to their private keys no longer possess the funds. It cites Chainalysis from 2017, stating that about 23% of circulating Bitcoin at that time was lost forever. Consequently, the estimated number of individuals holding at least 1 BTC is adjusted downward by 20%.
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Estimated Number of Bitcoin Holders: Based on the distribution table, the article concludes that between 500,000 and 1 million people may hold at least 1 BTC. This range factors in the complexities of ownership scenarios and the adjusted figures considering lost coins.
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Comparison to City Populations: To provide a tangible comparison, the article equates the potential number of individuals holding 1+ BTC to the populations of various cities. This helps readers contextualize the scale of Bitcoin ownership, highlighting the exclusivity of holding at least 1 Bitcoin.
In conclusion, the article offers a comprehensive analysis of Bitcoin ownership, taking into account various scenarios and adjusting figures to reflect the impact of lost coins on the overall distribution landscape. The nuanced exploration of ownership dynamics showcases a deep understanding of the complexities within the cryptocurrency space.
