Post
Topic
Board Economics
Re: Bitcoin gini coefficient is increasing
by
k1ng0fBTC
on 27/06/2019, 11:51:00 UTC
"Bitcoin has gained widespread attention globally in 2013 and is the first online currency based on a peer to peer network without any central authority or third parties. Its market capitalization reached US$ 8.5 billion in December 2013. However, despite its popularity some issues like network security (thefts), anonymity (privacy) and wealth distribution (inequality) have plagued it. Of considerable importance is the last issue of unequal wealth distribution as it may create a huge socio-economic burden for the society. A group of researchers estimated that the GINI coefficient for the network was at an all time high of 0.985 in Jan 2013 and that the rich were getting richer as the network grew. In the present work it has been strived to determine how the GINI actually increases or decreased depending upon the wealth distribution. For doing this a raw transaction of data of more than 36 million transactions has been sourced and a list of all users and their wealth in the network has been computed. The final results are very alarming as GINI has increased to 0.997 by the end of 2013 and the market share of top 10 holders alone has reached 6.6% of the entire market. Therefore, the rich have actually got richer and steps should be taken to curb such a wealth accumulation model in the network."

It seems bad news for bitcoin price.

https://link.springer.com/chapter/10.1007/978-981-13-0755-3_15



Well there are lots of rich people that are getting rich daily through Bitcoin and there are also poor people that has managed to become average/rich through this Bitcoin as well. It's all about what you do and how smart you are, you will always find a way. But generally, everything makes the rich to be richer, because they already have the money and they can decide to be pumping one coin to another and making the poor investors to fall victims, while they themselves become extra rich. The thing is that anyone who is going into cryptocurrency should have it in mind that cryptocurrency is a very risky thing to be part of. If you manage to earn anything from it, you should find elsewhere to invest it, something that is not very risky.