The Retail Investors’ Portion Of The Bitcoin ‘Supply Pie’ Reaches All-Time High
The rise of Bitcoin prices has had an unexpected consequence – retail investors now own a larger portion of the Bitcoin supply than ever before. According to data from Glassnode, this “supply pie” is now at an all-time high. In this article, we’ll explore why this might be happening, and what it could mean for the future of cryptocurrency trading.
Who Controls the Bitcoin Supply?
The supply of Bitcoin is controlled by the protocol that governs the cryptocurrency. By design, there can only ever be 21 million Bitcoin in existence and the rate at which new Bitcoin is created decreases over time. The vast majority of Bitcoin is held by a small group of early investors and developers, with an estimated 4 million BTC held by just 1,000 wallets.
According to data from Glassnode, the percentage of BTC held in addresses containing between 0.01 and 10 BTC has reached an all-time high of 67%. This shows that a growing number of people are buying small amounts of Bitcoin as a long-term investment.
With the institutional adoption of Bitcoin on the rise, it is likely that the retail investors’ portion of the supply pie will continue to grow in the future. This could lead to even more mainstream adoption of Bitcoin as a store of value and investment asset.
Who is a Retail Investor?
A retail investor is an individual who trades securities for their own personal account, rather than for another institution.
Retail investors typically trade through brokerages and investment firms. They may also trade directly with other individuals or through online platforms.
The majority of retail investors are small investors, who invest a relatively small amount of money compared to institutional investors.
There are several reasons why someone might choose to be a retail investor. Some people want to have more control over their investments than they would if they let a professional manage their money. Others may not have enough money to meet the minimum investment requirements of many institutional investors.
Whatever the reason, retail investors now make up a significant portion of the market for Bitcoin and other cryptocurrencies.
Who are the Biggest Players in the Bitcoin Industry?
Bitcoin is often thought of as a digital gold – a safe haven asset to store value in times of economic turmoil. While there is some truth to this, with Bitcoin’s price often reacting positively to macroeconomic events such as the Covid-19 pandemic, the reality is that the vast majority of Bitcoin is held by a small number of large investors, often referred to as “whales”.
According to data from BitInfoCharts, just over 96% of all Bitcoin is held in addresses containing 1000 BTC or more. That means that just 4% of all Bitcoin addresses hold 96% of all Bitcoins. When you consider that there are over 32 million active Bitcoin addresses, it highlights just how concentrated the ownership of Bitcoin is.
So who are these big players in the Bitcoin industry? Let’s take a look at some of the most notable whales.
The first is an anonymous entity known as “Satoshi Nakamoto”, believed to be the creator of Bitcoin. Satoshi’s address holds around 1 million BTC, worth over $10 billion at today’s prices. While Satoshi has never moved or spent any of their coins, it’s believed that they still hold significant sway over the cryptocurrency market due to their early involvement and influence.
Next up is Tim Draper, a well-known venture capitalist and early investor in companies like Tesla and Skype. Draper bought 30,000 BTC back in 2014 when the price was around $600 per coin. He famously predicted that the price
How Much Value Does a Retail Investment Represent?
In order to answer the question of how much value a retail investment represents, we must first understand what a retail investor is. A retail investor is defined as an individual investor who purchases securities for his or her own account, rather than for another entity.
Now that we know who a retail investor is, we can better answer the question of how much value a retail investment represents. To do this, we must look at the total supply of Bitcoin and compare it to the amount that is held by retail investors.
Based on this information, we can conclude that a retail investment in Bitcoin represents a significant portion of the total supply of Bitcoin. Furthermore, given the limited supply of Bitcoin and the increasing demand from investors, we believe that a retail investment in Bitcoin presents an excellent opportunity for growth and profitability.
Conclusion
The data clearly shows that retail investors are increasingly taking larger portions of the bitcoin “supply pie”. This is a positive development for the cryptocurrency industry, as it demonstrates that more people are becoming aware of and interested in investing in bitcoin. With increased participation from retail investors, we could see even greater price appreciation for bitcoin in the future. As always though, investors should be sure to do their own research before taking any action with regards to cryptocurrencies.
