“Whales” on the crypto market: how decentralized is bitcoin

Index
    Биткоин-киты 
    Bitcoin whales

    Ancient web scrolls contain legends about whales - strange and powerful creatures that can destroy markets with a click of their fingers , raise and lower the value of cryptocurrency and summon dragons. But about dragons, that's not for sure.

    Who in the crypto industry are called whales, how many are they really, are they dangerous for the cryptocurrency market, and why did they even appear?

     

    Whales on the capry market

    Киты на рынке биткоина
    Whales on the Bitcoin market
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    Whales are unique animals that are found in almost any area where there is an inequality in the distribution of resources, they are only called differently everywhere: monopolists, dominants, mastodons, etc.

    Whales appear at the stage of primary accumulation of capital and, under normal market development, gradually fade away. So, the whales of the XVI-XVII centuries were robber barons who seized the wealth of America, influencing with their help the European market.

    In the cryptocurrency market, whales appeared along with Bitcoin, and this is mainly:

    • Early miners and prophets who bought bitcoin for a couple (tens) of dollars - their wallets often “frozen” and transactions on them have not been conducted for several years;
    • Large exchanges with no less large trading reserves - carry out fabulous transactions, but usually verify accounts so as not to drive the market into panic when moving funds;
    • Investment funds - can either verify or not verify wallets, while accumulations range from a couple of hundred to several (tens) thousand bitcoins;
    • Representatives of the shadow government, about whom no one knows anything, but everyone knows that they exist and they steer bitcoin due to their savings in wallets.
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    Whales in the cryptocurrency market are people who have enough cryptocurrencies to influence its value if desired.

    To determine a whale, you need to look at how many bitcoins he stores on his whale wallet. Although there is no clear criterion here, the developers of of one of the analytical services indicate that the threshold “whale is not whale” is dynamic and varies depending on the value of the cryptocurrency itself.

    So, for bitcoin at the moment, holders with 10 BTC or more coins on the account can be considered whales (although these are very small whales, dwarf ones in practice), while the owners of Ethereum will require a minimum several hundred or even thousands of coins.

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    Therefore, in the “whale-not whale” scale, the main unit should not be the number of coins, but a percentage of the total capitalization that belongs to a particular person or company.

    It is noteworthy that the largest transaction in the history of bitcoin - 500,000 coins, was carried out back in 2011, when Mt. Gox was given for $ 1 bitcoin, so now it would not be the largest translation in fiat terms.

    But the record for the fiat size of the transaction so far belongs to Binance - in June 2019 they transferred $ 1.26 billion from their bitcoin wallet, paying $ 124: