Dogecoin concentrates more wealth on large addresses than Bitcoin


Coingoback

During yesterday’s “The B Word” event, Nate Maddrey, Researcher at Coin Metrics, showed some data about the distribution of cryptocurrencies in the active addresses of the Bitcoin, Ethereum and Dogecoin networks.

The cryptocurrency meme suffered from a lot of volatility yesterday after its most enthusiastic investor, Elon Musk, declared that he invests in Dogecoin because of community memes.

Dogecoin Price on Tradenview
From Tuesday (20) until yesterday (21) DOGE rose about 30%, but opened today’s candlestick retracing 15% and is traded to $0.19. Source: TradingView.

During “The B Word,” Musk mentioned that he owns Dogecoin, which made the coin reach 21 cents during the conference. This is not surprising, as their support for the currency does not go unnoticed in the media.

In his defense, he said that he likes the fact that the DOGE community is small, he also loves the dogs and the memes, of course, that surround his community.

“Dogecoin could avoid such problems [transações na blockchain do Bitcoin] using Coinbase and Binance. They help process transactions as a “de facto secondary layer” – theoretically allowing them to be faster and more efficient,” he replied.

However, before the main conversation in “The B Word”, Nate Maddrey, a researcher at Coin Metrics, showed some data about the distribution of cryptocurrencies in the active addresses of the Bitcoin and Dogecoin networks.

Bitcoin

live on "The B Word" Coinmetrics researcher Nate Maddrey explains:
Live on “The B Word” Coinmetrics researcher Nate Maddrey explains:
  • This graph shows the BTC bid distribution grouped by addresses that hold a certain percentage of 0.1% of the total currency bid.
  • Overall, the BTC provision is well distributed among these different groups of addresses.
live on "The B Word" Coinmetrics researcher Nate Maddrey explains:
Live on “The B Word” Coinmetrics researcher Nate Maddrey explains:
  • Between 2009 and 2012, the balance of distribution of BTC’s offer was configured as we see in the chart above
  • In the beginning, miners had a higher percentage of the BTC supply. This pattern changed in 2010 as they had to sell some satoshis to cover their operating costs.
  • This helped to naturally distribute the BTC offer on the network.
  • With the help of the first major cryptocurrency brokerage, Mt. Gox – launched in 2010 – there was more distribution of the offer to different addresses.

Dogecoin

live on "The B Word" Coinmetrics researcher Nate Maddrey explains:
Live on “The B Word” Coinmetrics researcher Nate Maddrey explains:
  • Dogecoin (DOGE) is even less centralized [que a rede Ethereum].
  • A single DOGE address controls 28% of the entire money supply.
  • Unlike BTC and ETH, the owner of the address with the most DOGE is unknown.
  • To put it in context, the biggest BTC address, which belongs to Binance, has about 1.6% of the total currency supply.

As such, bitcoin is more decentralized than Dogecoin, according to the data.

Anyway Cointimes wants to hear from you! Are you an investor in Dogecoin? So in your opinion, what is the best MEME in the DOGE community? Answer on here.




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Thomas Miles

Cryptocurrency is the most recently discovered currency which will be likely at the help of modernization across the next few decades. With a limited control from the government, the crypto market is independent of many features of a sound market as we know it. Thomas brings these stories to us by weaving them into articles of general importance to all those looking at the fluctuations in the market, or new entries. Thomas is also the founder of Bulletin Bits and is an excellent leader. His leadership is the kind that makes him the most knowledgeable and experienced on the team. His wonderful work ethic and attitude are worthy of imitation!

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