A recent analysis conducted by Sani, the co-founder of Time Chain Index, sheds light on the distribution of Bitcoin across its network users. Time Chain Index is a platform that focuses on on-chain metrics related to Bitcoin. Sani's study delved into the Bitcoin address dataset to gain insights into the number of network users and the concentration of the cryptocurrency within the network.

According to Sani's findings, the distribution of Bitcoin is highly concentrated, with fewer than 20,000 addresses holding over 60% of the total supply. This concentration highlights the unequal distribution of Bitcoin wealth within the network. On the other hand, the study revealed that approximately 3.9 million active users hold the remaining portion of the Bitcoin supply. This suggests that the vast majority of network users hold a relatively smaller share of the cryptocurrency compared to a smaller group of wallet addresses that control a significant portion of the supply.

The disparity in Bitcoin ownership among network users raises questions about the level of decentralization within the cryptocurrency ecosystem. The concentration of wealth in a small number of addresses could potentially impact the stability and resilience of the network. It also underscores the importance of understanding the dynamics of wealth distribution in the cryptocurrency space.

Sani's analysis provides valuable insights into the structure of the Bitcoin network and the behavior of its users. By examining on-chain metrics and address data, researchers can gain a better understanding of the distribution of wealth and the participation levels of users within the network.

The findings of this study have implications for policymakers, regulators, and industry stakeholders who are interested in the development and sustainability of the cryptocurrency market. Understanding the distribution of Bitcoin ownership can help inform decisions related to market interventions, regulatory frameworks, and initiatives aimed at promoting a more equitable distribution of wealth within the network.

As the cryptocurrency market continues to evolve and mature, studies like the one conducted by Sani play a crucial role in providing valuable insights into the dynamics of digital asset ownership and network participation. By shedding light on the concentration of Bitcoin wealth and the number of active users, researchers can contribute to a more informed and transparent discussion about the future of cryptocurrencies and their impact on the broader financial landscape.

Source: https://news.bitcoin.com/report-under-20000-addresses-hold-more-than-60-of-bitcoins-supply/