Just over 1,000 people own about 40% of all Bitcoins mined. This opinion was expressed by the head of the financial markets research department at AQR Capital Management, Aaron Brown.
Aaron Brown, head of the financial markets research department at AQR Capital Management, noted that these people, the so-called “whales,” can also coordinate their actions or devote a narrow circle of people to them.
Many of the “whales” have known each other for many years and have remained faithful to Bitcoin from the very first days, when few people took the currency seriously. Also, in his opinion, “whales” could potentially unite to collapse or, conversely, support the market. Moreover, whales can coordinate transactions or communicate them to a select few.
“I think there are several hundred guys. They can certainly call each other and, most likely, have already done so,” said Kyle Samani, managing partner at Multicoin Capital. Bitcoin is not a security, so legally a group of owners is not prohibited from concertedly buying the cryptocurrency in order to raise the market, and then immediately selling it.”
Regulators are very slow to respond to developments in the situation in the cryptocurrency market, so many of the existing rules are still vague. If traders not only raise the price, but also spread rumors online, then this could be considered fraud. The Bittrex exchange recently warned users that their accounts could be blocked if they collude to manipulate the price. For other cryptocurrencies, the laws may be different. Depending on how altcoins are structured and how investors plan to make money on them, some could be regarded as real currencies, according to the US Securities and Exchange Commission.
Bloomberg asked one of the early investors and major owners of Bitcoin, Roger Ver, about the possibility of collusion. In the letter he replied: “I suspect this may be true. People should be free in how they manage their money. But I never had time for such things."
According to https://www.bloomberg.com
You May Also Like
Tetras Capital provides investment advice
Tetras Capital, a hedge fund specializing in blockchain, cryptocurrencies and digital assets, recently announced that they are going to sell ETH and invest in BTC. Interestingly, the publication about this appeared shortly before the recent surge in the price of the cryptocurrency market, when Bitcoin broke through the $7,000 mark. This could be a sign of a bull run, which would certainly benefit Bitcoin investors.
House in Manhattan for Bitcoin
Just 2,500 Bitcoins will secure a prestigious address at 40 Riverside Drive in Manhattan. A house with a history from the late 19th century has undergone a five-year renovation and is being put on the real estate market for cryptocurrency.
