tl;dr
According to Bitwise Asset Management, individual holders control the majority of Bitcoin's total supply, with 69.4% belonging to private investors. This concentration of ownership presents challenges for large institutions and governments seeking to acquire Bitcoin. Additionally, only 5.7% of Bitco...
According to Bitwise Asset Management, individual holders control the majority of Bitcoin's total supply, with 69.4% belonging to private investors. This concentration of ownership presents challenges for large institutions and governments seeking to acquire Bitcoin.
Additionally, only 5.7% of Bitcoin remains to be mined, and OTC markets are running low on supply. As a result, institutions may soon be forced to buy directly from exchanges, potentially driving Bitcoin's price significantly higher.
In a recent post, Bitwise outlined Bitcoin’s total supply distribution. Apart from individual holders, approximately 7.5% of Bitcoin is considered lost. Funds and exchange-traded products (ETPs) control 6.1%. The wallet associated with Satoshi Nakamoto, Bitcoin’s pseudonymous creator, holds 4.6%. Moreover, governments and businesses collectively own just 5.8% of Bitcoin.
The asset manager highlighted that if companies and governments wish to acquire Bitcoin, they will primarily need to purchase it from individuals willing to sell.
Meanwhile, only 5.7% of Bitcoin remains to be mined. In addition, OTC (Over-the-Counter) markets are running low on Bitcoin. A crypto analyst highlighted that just 140,000 BTC remains in the OTC market.
This supply shock threat looms as Bitcoin adoption accelerates. In a previous report, BlackRock noted that cryptocurrency reached 300 million users faster than the internet and mobile phones.
Bitcoin adoption should get to several billion people by 2030 at current rates.