Analysis shows that XRP has much higher wealth concentration than both Bitcoin and Ethereum.
Ethereum addresses tend to have the smallest balances of the top three, indicating relatively strong wealth dispersion.
Adjusted median balances for XRP is 5-times that of Bitcoin and 32-times that of Ethereum.
It's important to keep in mind that these figures aren't directly comparable and should only be used to approximate wealth concentration.
In contrast, high levels of wealth concentration are correlated to high-levels of decision-making centralization.
In all, wealth concentration poses additional risk for investors.
Wealth concentration problems are exacerbated on proof-of-work systems, like what is planned for ETH 2.0 and what is already implemented on EOS. Systems which use tokens to determine the outcome of elections and make decisions give tokens direct power of the system.
For Bitcoin, large amounts of wealth concentration allow whales to manipulate the markets.
Under Balaji Srinivasan's framework wealth concentration may not be Bitcoin's main risk.
Understanding wealth concentration for each cryptocurrency is an important factor to consider.
Analyzing wealth concentration on Bitcoin, Ethereum, and XRP
gepubliceerd op Oct 1, 2019
by Cryptoslate | gepubliceerd op Coinage
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