Hodlers and whales: Who owns the most Bitcoin in 2022?

Hodlers and whales: Who owns the most Bitcoin in 2022? – Mail Bonus

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One of the key features of the Bitcoin blockchain is its transparency. Bitcoin allows anyone to see all the transactions that have been made on its network and check the status of each address out there. Because of this transparency, we can know who owns the most Bitcoin (BTC) in 2022.

It is important to look at who owns the most BTC as the supply of the cryptocurrency is limited to 21 million coins. In February, Kim Grauer, director of research at blockchain law firm Chainalysis, told Cointelegraph that an estimated 3.7 million BTC had been lost, effectively depleting the supply of cryptocurrency.

Analysts estimate that as Bitcoin grows, demand for it will increase. As it is estimated that 3.7 million coins are lost and a significant amount is kept in the chain by the first investors, what could follow is a supply shock. Such a shock could only become a reality if demand skyrocketed in the future.

Those who own the most Bitcoin will benefit from such a shock. In addition, one party’s significant supply is considered a risk because if that party ends up selling its war chest on the market, it could lead to significant disadvantages.

Who owns the most Bitcoin?

The person who is generally recognized for having the most Bitcoin is the creator of the cryptocurrency, Satoshi Nakamoto. It is estimated that Nakamoto has about 1.1 million BTC that they have never touched over the years, leading to some theories about their identity and circumstances.

A significant analysis has been made in determining how many coins Nakamoto actually has. After bringing BTC to market by mining the elemental block, Nakamoto mined a significant number of blocks through his hardware at the time, with each block coming with a 50-BTC award.

Nakamoto always used different Bitcoin addresses and disappeared back in 2010. It is unclear how many blocks they took as other early entrants took part in the operation rather early as well. Lower estimates suggest that Nakamoto has around 750,000 BTC.

Although Nakamoto’s exact assets are not entirely clear, they are listed on stock exchanges, governments, funds and other transparent organizations.

Ownership of public companies and private companies

Over time, some institutions have added Bitcoin to their balance sheets. The most prominent is the business intelligence company MicroStrategy, which raised 129,218 BTC after first investing in the cryptocurrency in August 2020.

The company’s CEO, Michael Saylor, has doubled the company’s Bitcoin policy across the bear market, saying that MicroStrategy intends to keep BTC “with adversity.” In early 2021, possibly thanks to influence from Saylor, electric car maker Tesla also invested in Bitcoin, splitting $ 1.5 billion to buy 43,200 BTC.

According to Bitcoin Treasuries, a website that runs Bitcoin owned by public companies, other companies that have Bitcoin on their balance sheets are Core Scientific, BTC Miner Marathon Digital Holdings, fintech giant Square, crypto exchange Coinbase and crypto investment company Galaxy Digital.

Thomas Perfumo, Kraken’s Chief Business Officer, spoke to Cointelegraph about companies’ cryptocurrency holdings:

“All companies should have an open mind towards Bitcoin, but they should consider what is in the best interests of their shareholders. At Kraken, we hold cryptocurrencies as state property. “

Perfumo added that Kraken also offers employees the opportunity to take “as much of their salary in cryptocurrency as they want through a salary solution we call Sidemoon. He added that a “significant number” of Kraken’s employees were using the solution.

Public companies are estimated to have a total of 268,271 BTC, which is equivalent to over 1.27% of Bitcoin’s total supply. Over the years, however, some private companies have also shown that they hold BTC.

The private companies with the largest amount of BTC are the company behind the EOSIO software Block.one, which has 140,000 BTC, the Tezos Foundation, which has 17,500 BTC, and the Stone Ridge Holdings Group, which has 10,000 BTC. MassMutual comes next, with 3,500 BTC.

In total, private companies reportedly have 202,068 BTC. Bill Barhydt, CEO of the cryptocurrency investment firm Abra, told the Cointelegraph that companies should invest in BTC but choose the “right size” for their treasury. Barhydt added:

“Long-term companies should consider investing even more of their liquidity in Bitcoin and Ethereum.”

The CEO revealed that Abra holds Bitcoin by comparing it to companies known to have invested in the cryptocurrency, including Tesla. According to him, as US accounting rules are “fixed and modernized, it will be even easier to repeat” what companies like these are doing.

Countries that own the most Bitcoin

There are also some countries with Bitcoin. Most people have acquired the flagship of the cryptocurrency by selling it, but these assets are often sold quickly at auctions to private investors.

El Salvador is the country with the most Bitcoin, with 2,301 BTC in the treasury. The country adopted the cryptocurrency as legal tender in September 2021 and has invested in it many times. It plans to create Bitcoin City using the power of a volcano.

In April 2022, it was reported that Finland had 1,981 BTC confiscated in criminal investigations with plans to sell the funds later in the year. At the time of writing, no report has emerged indicating that the funds have been auctioned.

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Ukrainian officials have provided data through Opendatabot showing that they owned a total of 46,351 BTC as of April 5, 2021. These statements came as claims for information on assets placed on public officials, meaning they are assets individuals and not the government itself.

Similarly, Georgian lawmakers are said to have 66 BTC in common, although the funds belong to the private sector and not to the government.

Bitcoin fund holdings

Investment funds in cryptocurrencies allow investors to take risks on their underlying assets without having to deal with them. In practice, this means getting exposure to cryptocurrencies like Bitcoin without having to deal with public or private keys.

Funds are adding more Bitcoin to respond to investor inflows and get rid of their assets when investors withdraw. The largest fund that owns Bitcoin is Grayscale’s Bitcoin Trust, which has 643,572 BTC, which is equivalent to over 3% of the cryptocurrency’s supply in circulation. Next is CoinShares, which owns about 42,980 BTC through XBT Provider.

Prior to the sale of this month’s cryptocurrency market, the Purpose Bitcoin ETF was the largest exchange-traded fund of BTC holdings. The sale reduced the fund’s assets from 47,818 BTC to 23,307 BTC between 16 and 17 June, a staggering 51% decrease. The fund’s holding is still valued at 3iQ CoinShares Bitcoin ETF, which has an estimated 12,115 BTC.

The largest single Bitcoin holding

Bitcoin addresses are pseudonyms, which means that while we can easily see which addresses have the most Bitcoin in them, we can only identify who is behind each one with an extensive blockchain analysis or if the person behind them appears.

Data from BitInfoCharts show that the top Bitcoin wallets belong to cryptocurrency exchanges, which means that they hold the assets of various users who choose to keep their funds on exchanges. Data show that there are five Bitcoin addresses with between 100,000 and 1 million BTC in them. Four of them have been identified and belong to stock exchanges.

The composition of Bitcoin holders. Source: BitInfoCharts

While it is possible to see how many addresses hold how much BTC, this does not exactly answer the question of which individuals have the largest Bitcoin holdings. Market analysis and individual statements, however, give us various clues.

Changpeng Zhao, founder and CEO of the leading cryptocurrency exchange Binance, was said to have a net worth of $ 96 billion in January 2022, as this valuation is reportedly not included in the assets of Bitcoin and BNB.

The CEO has repeatedly said that he has no fiat currencies, which would indicate significant BTC and BNB holdings. Although the exact numbers are not known, it is fairly safe to assume that Zhao is among those who own a significant amount of Bitcoin.

Other well-known big Bitcoin owners are Tyler and Cameron Winklevoss, who invested the millions they made in their lawsuit against Facebook into cryptocurrencies and became the first Bitcoin billionaires. It was said that the duo owned at one point 1% of all Bitcoin in circulation.

Tim Draper, a Silicon Valley-based venture capitalist, is known to have bought at least 30,000 BTC in 2014 and bought the coin at an auction held by US authorities after seizing the funds from the dead darknet marketplace Silk Road.

Other individuals who are considered to have large amounts of BTC are Barry Silbert, CEO of Digital Currency Group, FTX CEO Sam Bankman-Fried, Saylor and Brian Armstrong, CEO of Coinbase. Their exact asset – if they even hold Bitcoin – is unknown.

The growth of Bitcoin hodler and its availability

As the number of Bitcoin owners out there increases, so does the supply of cryptocurrencies, which could lead to the aforementioned supply shock. Kraken’s Perfumo pointed out that the magic of cryptography is that each individual has full flexibility in managing their cryptography.

Barhydt at Abra said that investors in Bitcoin and Ether (ETH) should have a minimum of five to seven years or more and should “assume that these funds are locked for at least five years, given the fluctuations involved. to evaluate technology that expands exponentially. . ”

Assuming funds are locked in would increase the potential supply shock. Kent Barton, a leading symbolist at ShapeShift DAO, told the Cointelegraph that bear markets “have always been a great time to buy Bitcoin at a relatively low price,” even though there is no guarantee that prices will ever rise again.

In the beef markets, Barton said it was important to “take a certain percentage of your risk off the table,” as transferring some BTC to a fiat when prices are high “means you will be in a better position to withstand the next bear market and have dry powder. to buy Bitcoin at a low price. Barton added:

“In a very long-term time frame, Bitcoin continues to serve as a potential hedge against the fall of the dollar.”

Whether Bitcoin is a good investment or not depends on who you ask. It is not possible to devalue the currency with inflation, nor can its trade be censored by a central authority. For some of its owners, the price is almost irrelevant as long as these and other qualities are maintained.