Researchers found that approximately 11,000 entities are responsible for more than half of the transaction volume on the Bitcoin chain.
According to a Learn According to data released by the National Bureau of Economic Research (NBER) on October 21, 11,043 on-chain entities accounted for 55% of Bitcoin network transaction volume. It is estimated that cryptocurrency exchanges account for three-quarters of the transaction volume on the chain.
The report found that the top 1,000 largest investors control approximately 3 million bitcoins, accounting for 15.9% of the circulating bitcoins, while the next 9,000 largest investors hold approximately 2 million bitcoins, accounting for 10.6 of the circulating bitcoins %.
The authors of the report concluded that although BTC’s 2021 bull market attracted a large number of new investors, the network is still highly concentrated, stating that:
“The Bitcoin ecosystem is still dominated by a large concentration of participants, whether they are large miners, Bitcoin holders or exchanges.”
However, the study also pointed out that individual Bitcoin holders currently represent 8.5 million Bitcoins, accounting for 45.1% of the supply.
NBER also found that the Bitcoin mining industry is highly concentrated. It is estimated that the largest 10% of miners control 90% of the world’s computing power. The report added that approximately 50 miners (approximately 0.1% of the network) control 50% of the Bitcoin network’s total computing power.
Although NBER claims that the centralization of hash rate exposes the Bitcoin network to a significant risk of 51% attacks, the report does not provide the hypothesis that the world’s top miners will be incentivized to launch attacks on the network.
According to the Bitcoin Electricity Consumption Index (BECI) of the University of Cambridge, since September 2019, the global distribution of computing power has been significantly diversified-when China’s share reached its peak 75.5%
although China represses again BECI data shows that domestic Bitcoin miners have recently been cited as the reason for miners seeking cheap electricity in North America, Central Asia, and Eastern Europe. China’s computing power has dropped by 40% Before the April crackdown.