Bitcoin Wealth Not Decentralize?
Blockchain, the technology behind cryptocurrency is well known for decentralization but bitcoin is proving not be that much when it comes to wealth distribution.
This has been made known by Meltem Demirors, Director of Development at Digital Currency Group (DCG), a firm focused on building and supporting bitcoin and blockchain companies.
“This economic premise of fairness and equality has not yet been realized,” says Meltem, CoinShares’ Chief Strategy Officer.
“It is very problematic … Twenty-percent of bitcoin are owned by the top 100 wallets. Ethereum is even worse, in Ripple it’s something like 70%. So not very decentralized.
“Investor disclosure, investor transparency, similar to the way an institution would disclose its positions it holds, or analyst would disclose the positions they have an interest in can go a long way in at least reducing the amount of moral hazard that exists in this industry.
“I’ve always said if a venture investor owns 50% of the tokens in the new internet, as a consumer, I don’t want to use that internet. So for me until we sort that problem it will be very difficult to build globally useable networks.”