25 million Bitcoin addresses in use and 95% of them hold 0.001 BTC

It’s no secret that those who adopted Bitcoin (BTC) its infancy stage have made an obscene amount of money. Starting from just a few cents, the digital currency has skyrocketed to as high as $1,200 before climbing back down to a modest $800.

When it comes to the cryptocurrency marketplace, a question that has been asked repeatedly is: who holds what and how much? Well, this new chart compiled by Bitcoin Rich List answers this very question and the results are somewhat surprising.

Of the more than 25 million bitcoin addresses in usage, more than 95 percent of those, or 24,412,755, owns 0.001 BTC or less, which is about 73 cents. Heading further down the list, a little more than one percent maintains a balance of 0.01 BTC or less, a figure of just about $7.30.

bitcoinIn fact, less than one percent holds at least one bitcoin. Ninety-eight bitcoin addresses have possession of between 10,000 and 21 million bitcoins. This represents more than 20 percent of all bitcoins in the marketplace.

Where do you place yourself on this list?

It has been known for a long time that many bitcoiners hoard their digital currency in the same way that investors hold onto their precious metals. A lot of bitcoin enthusiasts see the virtual currency going up in value and thus will make them richer. Others, meanwhile, project bitcoin to become the primary electronic payment and some argue the case that bitcoins will destroy the United States dollar.

Perhaps this is just Tulipmania all over again or bitcoin might be the wave of the future and will transform the fundamentals of payment systems and currencies everywhere. Maybe Visa and PayPal will go the way of physical cash and MySpace: in the history books.

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  • http://delta.geek.nz/ Hamish MacEwan

    “Ninety-eight bitcoin addresses have possession of between 10,000 and 21 million bitcoins. – See more at: http://www.pfhub.com/25-million-bitcoin-addresses-in-use-and-95-of-them-hold-0-001-btc-356/#sthash.ehLpPRzY.dpuf

    Given there are currently only 12.372M bitcoins minted at present, a methodology that suggests “between 10,000 and 21 million bitcoins” seems wildly inaccurate.

  • Phillip Wooten

    The Cyber currency is fake – nothing to back it up, no insurance, nothing! Bitcoins is a payment system operating in lawlessness, nothing more than a software program. Invest at your own risk.

  • nomailing

    your article seems to indicate that each person has a single address. But this is not the case.
    This statistic is in fact quite useless.
    It is the same as if you would present statistics of how many 10 Cent coins are in circulation in comparison to how many 50 cent coins are in circulation. Who cares? This absolutely does not say anything about the distribution of wealth…

  • Brian

    0 to 0.001 is basically zero, and for all we know the majority of those wallets contain exactly zero. Sure, 24 million bitcoin addresses are empty, so what? Lots of people set up a bitcoin wallet and don’t use it. I signed up for blockchain.info and didn’t use it, so I contribute to that statistic as well. That doesn’t tell us anything about wealth concentration.

    What’s more relevant is the breakdown of bitcoins in those addresses. Most of the bitcoins in the world fall into wallets of 10-100 bitcoins. That means if you randomly selected a bitcoin, the greatest probability is that it would be in the wallet of someone who had between $7,200 and $72,000 invested in bitcoin at today’s price. That seems reasonable to me.

    As the other poster said, many “wallets” or “addresses” are storing the coins of a large number of users. Exchanges most likely don’t have a wallet per user, but keep around a hundred or maybe a thousand wallets with all the btc of all of their users, and then use a database to account for who owns how much of their stash.

    The majority of wallets containing more than zero bitcoin contain between 0.01 and 0.1. that suggests that the majority of people involved in bitcoin are getting their feet wet with $7 to $70 worth. They might have bought this through something like coinbase, or possibly mined a small amount in a pool, or possibly sold something for bitcoin.

    There are only two wallets containing more than 100k btc. One has never been spent from, and for all we know is defunct/lost. The other is owned by the FBI.

  • Ardon Lukasiewicz

    Does Wells Fargo count as 1 account holder within traditional banking or millions?

  • GoodNPlenty333

    This is completely absurd. You cannot determine AT ALL what the distribution of coins are among people because:

    1) Many addresses contain the coins of Thousands, or tens of thousands of people. These are places like Coinbase, exchanges, gambling sites etc.

    2) People nearly always have more than one address representing all their bitcoins.

    3) Many addresses, especially early ones with large sums, have lost coins in them which nobody owns because the keys have been lost.

    With these facts, any attempts to look at the wealth distribution of Bitcoins will be 100% flawed and completely inaccurate. I hold all my Bitcoins on Coinbase, as do many many people, and they keep most of their bitcoins in a few very large addresses.

    This would be like an alien race looking at the distribution of wealth on earth and proclaiming that a few people have almost all of it locked in safes, in these strange buildings called “banks”.

    • Alexander Justday

      Let me educate you: It is fraud and an illegal attempt to destroy American currency…Let Fed arrest all of those to undermine our prosperity!!!

      • GoodNPlenty333

        Lol you sir are hilarious. If the Fed is going to arrest those who undermine our prosperity, they’ll have to arrest themselves. The Fed has released so much money into the system that eventually will be circulated causing massive amounts of inflation, which is a direct threat to our prosperity.

    • Alexander Justday

      Let me do it again: A bunch of devious and underground Rats…That is what you are!!!