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Bitcoin Distribution: 40 Percent of all BTC Controlled by 2,000 People – Will BTC Really Change the World?

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  • Yuri Molchan
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    Even though the circulating supply of BTC is slightly over 18 mln, 40 percent of all coins are owned by fewer than 2,000 people, a crypto expert says

40% of all BTC owned by just 2,000 people – will Bitcoin really change the world?
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Despite the fact that Satoshi Nakamoto designed Bitcoin to be used by everyone, the system of distribution and ownership has not gone far away from the fiat monetary system. There are so-called whales and those who own little Bitcoin because unless you are a miner, you have to pay for the innovative digital coin that opposes traditional fiat money…with traditional fiat money.

If you are a serious, large-scale miner and work with a large pool, you still need a lot of cash to buy the necessary gear and pay your electricity bills. The third way of accumulating BTC is working for it (unless it is your only source of income and you have to pay your bills by selling BTC).

Will Bitcoin indeed ‘change the world’?

Obviously, Bitcoin is designed to work in a world of economic competition and it does not chase any utopian or philanthropic goals.

‘Changing the world’ in the context of Bitcoin implies only the chance to avoid using the current banking system controlled by the governments.

In all other aspects, the world would remain as it is with the rich and the poor, just with decentralized money circulating instead of government-controlled cash.

Those who cherish hopes that Bitcoin will solve the relevant problems that many campaigners are struggling to eliminate may forget about it. Poverty and starvation, lack of fresh drinking water in African countries, drug trafficking (Bitcoin, same as good old USD, is loved by drug dealers) will remain until other technologies are invented and implemented. Something more powerful than a modernized financial system or a digitized system of remittance payments.

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The old system dressed in new digital clothes

Meanwhile, the old system wearing the new, digital and decentralized garments can already be seen now – around 40 percent of Bitcoin is kept by less than 2,000 people as the crypto expert Richard Heart reminds the community on his Twitter page.

Similarly, the majority of the planet’s resources and wealth is controlled by just a few percent of people. Seems like Bitcoin has not gone much far from this, despite its innovative nature and ambitious goals.

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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  • Vladislav Sopov
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    Vitalik Buterin, Co-Founder of the Ethereum Foundation and “father” of Ethereum, sat down with Eric Weinstein on The Portal podcast to discuss “old” and “new” economics.

Vitalik Buterin, Ethereum: Fiat Money Will Not Be Destroyed
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Two intellectuals, Vitalik Buterin (Creator of Ethereum), and Eric Weinstein (PhD, scientist, and Managing Director at Thiel Capital), recently sat down on The Portal to discuss Mr. Buterin's attitude towards the "classic" economics theory.

Libertarianism and Diversity

When both individuals discussed libertarianism, Vitalik Buterin said that libertarians mostly belong to two large groups characterized as either a "leave me alone'" or "conquer the world" approach. This divergence can be extrapolated into cryptocurrencies in terms of their mass adoption.

Mr. Buterin highlighted that there are participants within the crypto community that are assured that fiat currencies will be destroyed and replaced by Bitcoin (BTC). In general, Mr. Buterin estimated that the prospects of any "short-term disruption" for the sake of some "nebulous long-term gain" is skeptical. He said:

I'm definitely not in the camp that actively relishes that fiat currencies will be destroyed. 

Mr. Buterin added that several members within the Bitcoin community share this belief.

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Peaceful Coexistence

Vitalik Buterin predicts that Bitcoin and other cryptocurrencies will coexist with fiat money and balance the disadvantages of the classic monetary system. He also added that cryptocurrencies will provide "checks and balances" against a government monopoly on "issuing money" rather than "replacing it entirely".

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Mr. Buterin is well-known as a champion of pluralism in future world of cryptocurrency. He is sure that different communities will defend their views on its development.

Will crypto one day replace fiat money? Tell us your opinion on Twitter.

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About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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