927 people own half of all Bitcoins.
Adam Rifkin stashed this in Bitcoin
Bitcoin is a tool of the 1%:
Now Finnish entrepreneur Risto Pietilä, an active member of on Bitcointalk.org, has offered an estimate of just how severe this ownership imbalance could be.
He based his calculations on data from Bitcoinrichlist.com, which has trawled through Bitcoin's master ledger — the Blockchain — to offer a rough guide to distribution as well as activity on Bitcoin exchanges.
We ran the calculations by Martti Malmi, one of Bitcoin's earliest developers, and he agreed they were basically sound. "The order of magnitude seems right," he said in an email to BI.
So, as of Dec. 3., using a price of $1,000 (which is basically where we are now), and assuming 12 million Bitcoins in circulation, here's the breakdown: 47 individuals own 28.9% of the approximately 12 million Bitcoins in existence so far. Another 880 own 21.5%, meaning 927 people control half of the entire market cap of the digital currency. Another 10,000 individuals control about a quarter. And the rest of us (around a million of us) get the crumbs (500,000 are out of circulation, whether through government seizure or people losing their passwords).
So Bitcoin has made a few people rich and a lot of people not rich.
No wonder Bitcoin has been called a Ponzi scheme.
Which is why I'm bringing you Gloebit - a currency; not a commodity, a speculation tool, or a Ponzi scheme. www.gloebit.com
That's excellent. There's clearly tremendous demand for it.
I currently working on the next pyramid scheme….will let you know when I announce it to the world. Hopefully you will get in early ;)
Thanks Josh. Because the key of any good scheme is to get in early.
Like the people who bought their Bitcoins for pennies.
I am about to corner the market on Blue Mountain Pottery - http://en.wikipedia.org/wiki/Blue_Mountain_Pottery Don't say I didn't give you the heads up.
Thanks buddy. I hope the market heats up!
Researchers found that 64 percent of bitcoins are in accounts that have never been used:
And the ones that are being used aren't being used more. You can see that in the chart below from Jason Kuznicki, which looks at the dollar value of all bitcoin transactions each day divided by the dollar value of all bitcoins each day. It's hard to see any pattern here—and that's the point. If people were using bitcoins more, this ratio would be going up. It's not.
Bitcoin won't work as a currency as long as it's so deflationary. Why spend bitcoins today when they might be worth much more tomorrow? The only reason would be to buy or do things online that you can't buy or do with dollars (or euros or yuan)—something illegal. Now, black markets can be big markets, especially when it comes to evading capital controls, but not so big that Bitcoin would ever become more than a niche "currency."
What Bitcoin really needs is a central bank to stabilize its value. When the demand for Bitcoin goes up, they need to print more to keep it from skyrocketing. That is, they need to decide whether they want Bitcoin to be a Ponzi scheme for techno-libertarians or an actual medium of exchange. See, the technology of Bitcoin really is revolutionary, and the currency of Bitcoin is holding it back. In other words, Bitcoin really could have use as a payments systemif it had a stable value. But it doesn't, so it's just a dotcom stock. And one that could be co-opted by banks that take its technology and use it with dollars instead.