REUTERS/Adam Hunger Ownership of Bitcoin appears to be highly lopsided. This has long been a source of consternation in the Bitcoin community, and people like the FT s Izabella Kaminska have written extensively about the implications of this apparent cartel on prices — basically, they get to dictate them, and the rest of us are just price takers. Now Finnish entrepreneur Risto Pietilä, an active member of on Bitcointalk.org, has offered an estimate of just how severe this ownership imbalance could be. He based his calculations on data from Bitcoinrichlist.com, which has trawled through Bitcoin s master ledger — the Blockchain — to offer a rough guide to distribution as well as activity on Bitcoin exchanges. We ran the calculations by Martti Malmi, one of Bitcoin s earliest developers, and he agreed they were basically sound. The order of magnitude seems right, he said in an email to BI.
So, as of Dec. 3., using a price of $1,000 (which is basically where we are now), and assuming 12Bitcoin[note 5] is a payment system invented by Satoshi Nakamoto,[note 6] who published the invention in 2008 and released it as open-source software in 2009. The system is peer-to-peer; users can transact directly without needing an intermediary.:4 Transactions are verified by network nodes and recorded in a public distributed ledger called the block chain. The ledger uses its own unit of account, also called bitcoin.[note 7] The system works without a central repository or single administrator, which has led the US Treasury to categorize it as a decentralized virtual currency. Bitcoin is often called the first cryptocurrency, although prior systems existed.[note 8] Bitcoin is more correctly described as the first decentralized digital currency. It is the largest of its kind in terms of total market value. Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into the public ledger. This activity is calledWe already knew that Chamath Palihapitiya, ex-Facebook executive, and founder and partner of The Social+Capital Partnership, was bullish on Bitcoins. But how bullish? He actually owns the equivalent of $5 million in Bitcoins, representing one of the largest positions in the world with the Winklevoss twins . But that’s not all, Palihapitiya wants to own even more than that — up to $10 and $15 million. He didn’t say whether he counts on an increase in value of Bitcoins or whether he will start right away to purchase more Bitcoins. Palihapitiya seems to be very aware of the risks involved with betting on a digital currency, but is willing to take those risks. He already shared his thoughts about Bitcoins and why he believes that it is a disruptive idea. But until now, we didn’t know how much Bitcoin he actually owned.
Among the reasons why Palihapitiya is bullish on Bitcoin, he cited the usual key advantages of the currency: it’s an electronic, peer-to-peer, mostly unregulated currency.Many people have lost some data while reformatting a computer hard drive. Jered Kenna lost more than that. In 2010 he erased from his computer 800 Bitcoins that have been worth more than $200,000. Kenna isn’t upset: He has plenty more. He says he bought his first batch of virtual currency, 5,000 coins, at 20¢ each. On April 10, Bitcoins traded for as much as $258 each, according to Tradehill, a Bitcoin exchange in San Francisco, before plunging more than $100. Like other enthusiasts, Kenna shrugs off the volatility. While he won’t disclose his total holdings, he says, “I’m happy to be considered a member of the Bitcoin millionaires’ club. ” Created four years ago by a person or group using the name Satoshi Nakamoto, Bitcoin is a virtual currency that can be used to buy and sell a broad range of items—from cupcakes to electronics to illegal narcotics. The surge in a Bitcoin’s value has made millionaires out of people who loaded up on them early on—however briefly. Many of them arefalseWho Owns the World’s Biggest Bitcoin Wallet? The FBI Image: Casascius/CC. Who owns the single largest Bitcoin wallet on the internet? The U.S. government. Mar 23, 2010 · In this modern business world of international consolidation it is sometimes hard to keep track of who owns which car marque these days. Here is aWho owns the single largest Bitcoin wallet on the internet? The U.S. government. In September, the FBI shut down the Silk Road online drug marketplace, and it started seizing bitcoins belonging to the Dread Pirate Roberts — the operator of the illicit online marketplace, who they say is an American man named Ross Ulbricht. The seizure sparked an ongoing public discussion about the future of Bitcoin, the world’s most popular digital currency, but it had an unforeseen side-effect: It made the FBI the holder of the world’s biggest Bitcoin wallet. The FBI now controls more than 144,000 bitcoins that reside at a bitcoin address that consolidates much of the seized Silk Road bitcoins. Those 144,000 bitcoins are worth close to $100 million at Tuesday’s exchange rates.
Another address, containing Silk Road funds seized earlier by the FBI, contains nearly 30,000 bitcoins ($20 million). That doesn’t make the FBI the world’s largest bitcoin holder. This honor is thought to belong to bitcoin’s.