Whales Rule: What Happens When 1% of Bitcoin Holders Control 99% of the Supply?

BitInfoCharts data shows just 1.86% of Bitcoin wallet addresses holding over 90% of the total BTC supply, concerns are growing over market manipulation, centralization, and liquidity risks. These "whales" wield significant influence, sparking debates about the future of Bitcoin’s decentralization.

Caroline Bowler, CEO of BTC Markets, warns that centralizing control among a few could undermine Bitcoin’s core principles and destabilize trust in the system. While whales can sway market prices, as Phillip Lord from Oobit points out, they can’t change Bitcoin’s network without broader community approval through Bitcoin Improvement Proposals (BIPs).

Despite their power, whales can’t alter fundamental aspects like the 21 million BTC limit, notes Jonathan Hargreaves of Elastos. Yet, as Sasha Ivanov from Waves Tech acknowledges, there’s no current mechanism to prevent wealth concentration.

This ongoing centralization of Bitcoin’s supply emphasizes the critical need for decentralization and community-driven governance to preserve the integrity of the crypto space.