Bitcoin is more secure than ever with a record hash rate. In addition, small investors now make up 50 percent of Bitcoin addresses. The distribution of wealth, however, can still be expanded. The market update.
Bitcoin (BTC) is first and foremost a response to the financial system that has fallen apart — this belief is an integral part of the crypto liturgy. In addition to the algorithmically defined creation rate, the decentralization of the network is one of the great strengths of BTC. Over 73,000 network nodes now control the Bitcoin blockchain. This is shown by data from Bitcoin core developer Luke Dashjr.
Almost 10,000 of them are so-called listening nodes
In terms of the computing power (hash rate) that secures the Bitcoin network, BTC is still unmatched. Both BTC and its fork BCH and the BCH Fork BSV use the SHA-256 algorithm for their proof of work . The fact that BTC is still by far the miners’ favorite is illustrated impressively by data from Coindance .
The high hash rate means that an attack on the Bitcoin network is extremely costly. After all, an attacker would have to provide over 51 percent of the network’s computing power in order to have a chance to rewrite the blockchain according to his wishes. With rented hardware, such an attack would currently cost over $ 700,000 per hour. Because of the many eyes monitoring the Bitcoin blockchain, the chances of an undetected attack are zero. If so, the branch of the blockchain propagated by an attacker would be repelled from the network by means of a fork, like the tail of a lizard.
A 51 percent attack on Bitcoin Cash (BCH), on the other hand, would be possible for USD 8,560 an hour, at least according to the prices of the cloud mining provider NiceHash. Bitcoin Satoshi Vision looks even darker: Here a 51 percent attack would cost only USD 6,912.
Another facet of decentralization is the distribution of wealth within Bitcoin. There is also positive news from this front, but not without a downside. The number of wallets with at least one Satoshi on them recently set a new all-time high. This emerges from the data from the blockchain analysis company Glassnode.
Wallets with an amount between 0 and 0.001 BTC now make up around half of the BTC addresses. However, with a total of 3,823 BTC, these Mini Hodlers only have 0.02 percent of all Bitcoin units. At around 29 percent, the largest share is owned by addresses on which between 1,000 and 10,000 BTC are stored.
Meanwhile, the BTC “Rich List” is led by the wallets of the Bitcoin exchanges. According to the tracking site Bitinfocharts, the top 3 richest addresses are held by Huobi (141,452 BTC), Binance (118,485 BTC), and Bitfinex (98,511 BTC). The two cold wallets from Huobi and Binance alone control 1.39 percent of all BTC. Bitinfocharts does not include Coinbase’s cold wallet stocks, which are by far the largest at 747,000. However, what connects all Bitcoin exchanges with one another is the tendency that they are slowly but surely in danger of running out of BTC. However, there is a glimmer of hope: The number of large BTC whales with more than 10,000 BTC has been in a nosedive since November 2020.
Nevertheless, it can be said that while the decentralization and security of the BTC network are at a record level, there is still room for improvement in the distribution of wealth.
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