The Major Whales Can Affect The Decentralized Currency Based On Blockchain

Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic
The Major Whales Can Affect The Decentralized Currency Based On Blockchain

  • Many of the vast Whales can need a small group to share the majority of the Crypto.
  • According to some of the demographics which have been collected by various agencies, it can be noted that Litecoin is the most centralized currency.
  • A Gini coefficient is an indicator of wealth distribution, which ranges from “1” to “0”.

It is always said, “be careful of your actions, for they can have consequences you might not have imagined. Similarly, when you think of investing in a digital asset, you have to be extremely careful of the results.

It is a well-known fact that those who trade in Bitcoins, and especially the giant whales, are wealthy, but there is another side to it too. These decisions of the giant investors could even affect the value of cryptocurrency itself and can also destroy the decentralized structure of blockchains.

An incident that justifies this fact is the one in mid-2018. A Bitcoin investor invested a $416 million into a trading platform on the 31st of July, 2018.

According to him, the market would have gone up for the currency, the Bitcoin, but it went otherwise. The price of BTC saw a downfall of 5% for which the giant Whale incurred huge losses.

Recently a study says that some of the major coins, namely Litecoin, Ethereum, Bitcoin Cash & Bitcoin, which almost rule out the other digital currencies, are only held by the whales who contain vast amounts of the kinds.

Some of the significant whales are so rich that they tend to keep the maximum share of the cryptos and can control the various activities of the Digital Coin as a whole.

Also, many of the vast Whales can need a small group to share the majority of the Crypto, and if they are malicious, they could be the reason behind the “51% attack”.

Adding to the information, it is essential to note that the addresses do not represent a person. A person could have many addresses, and every address could be a huge whale.

So, according to some of the demographics which have been collected by various agencies, it can be noted that Litecoin is the most centralized currency. This means that to gain the max ownership of the money, you have to first 189 addresses.

The ETH, on the other hand, is a cryptocurrency that has witnessed an increased growth by a 13 pointer (.69 to .78% Gini coefficient), and it only requires the top 10,000 addresses for gaining the maximum control of the currency.

Also, BTC of the 4 has the lowest wealth inequality with a Gini Coeff of .64 in 2019. A Gini coefficient is an indicator of wealth distribution, which ranges from “1” to “0”. If the value of Gini coeff is near to 0, then the income distribution is equal and vice-versa.

Talking of the other coins, the Ethereum ERC-20 tokens, Veritaseum, and others have varying numbers when addresses to gain for a majority of the ownership of the coins, and the situation of each digital asset token is different.

Also, some of the tokens with small market capital see the most significant difference in terms of wealth inequality. A large number of tokens are all tokens with a little market value and are only limited to a few addresses.

Lastly, as we conclude, all we can say is that the crypto market is more volatile and means that the giant whales can impact to the farthest. Also, the bigger the Whale, the bigger the attacks.

This would enable the fraudsters to hunt down these and would lead to the affecting of the digital currency.

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