Whales have become regular participants of the Bitcoin market (BTC) , often moving large amounts of the main cryptocurrency between exchanges , thereby arresting community interest. The market’s turbulent response to large-scale transactions leaves wallets with a relatively small BTC balance in the shadow.
The latest report of the analytic company for cryptocurrency Longhash indicates a noticeable discrepancy between the Bitcoin addresses, which creates a kind of bottleneck. In a report referring to BitInfoCharts data, it is reported that over 18 million BTC addresses contained from $ 1 to $ 100.
Longhash added that the reason for this kind of bottleneck is the “commission per transaction” of digital assets, which can fluctuate.
In addition, only one third of the above number, or 6.1 million addresses contain bitcoins in the amount of $ 100 to $ 1000. If you look at higher balance sheets – from $ 1,000 to $ 10,000, the number of addresses will decrease by more than 62% , their number is about 2.29 million.
And only 541,959 addresses contain BTC in the amount of more than $ 10,000. The report also analyzes the apparent imbalance between address balances:
“Although this distribution may be a positive sign that bitcoin is not only for wealthy people, high transaction fees can be an obstacle for small owners.”
The report adds that commissions for Bitcoin transactions registered this year were quite low, allowing you to use Bitcoin as an "effective tool for daily payments." However, with an increase in commissions in the middle of the year, the cost of the transaction processed in the next block reaches $ 2.54.
Taking into account the commission structure of Bitcoin, we see that the movement of whales leads to small commissions, while for small transactions it is too high. Consequently, the transaction structure itself is a stimulus for accumulating and sending large amounts in bitcoins and prevents small transfers.
The output of the report was the following statement:
“A large number of small BTC holders may seem encouraging, the high transaction fees may mean that at present, it is unlikely that many will spend their BTC. A huge number of small Bitcoin holders illustrate the need for scalable solutions that would limit the periodically increasing transaction fees. ”
Publication date 10.06.2019
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