4 reasons why the 15 richest Bitcoin portfolios still matter in 2021

Bitcoin could have appeared in 2020, but see why tracking the 15 richest addresses will be important in 2021.

Transparency is one of the most intriguing aspects of cryptomorphs, and it was this openness that attracted many of the early supporters of Bitcoin (BTC).

Blockchain technology makes all the information associated with the network operation accessible for anyone interested in taking a look. All known addresses, transactions, fees paid and other details related to the multisignature and use of SegWit are exposed.

The 15 richest Bitcoin Formula addresses have always been the center of attention for several reasons. Some encryption researchers usually search the main addresses for the steps of Bitcoin creator Satoshi Nakamoto. Others study data to track the movements of the cryptographic whales and predict the market manipulation that results in volatile fluctuations in Bitcoin price.

The main addresses have caught the attention of government agencies, such as the US Internal Revenue Service and the Treasury Department.

In fact, entire companies specializing in obtaining additional information on cryptomime addresses and their potential associations have been formed. It is no secret that the IRS has hired Chainalysis and Integra FEC, two crypto market data companies, to track transactions.

More recently, under Treasury Secretary Steven Mnuchin, the Treasury Department is considering whether or not a rule on self-custody cryptomotes portfolios is necessary. If approved, these changes emphasize the importance of privacy to market participants.

Address is not the same as entity

As shown above, the 15 main addresses hold 1.07 million BTC, or 5.7% of Bitcoin stock in circulation. At the current price level of US$26,500, this is equivalent to US$28.3 billion. Although this is a large amount of Bitcoin, it is also important to note that the aggregate volume of BTC in cash exchanges exceeds US$5 billion per day.

It is important to note that the initial deposit date of an address does not mean that the entity that owns the address acquired the currencies that day. The coins may have been sent from another address belonging to the same entity. Therefore, the dates that show the first sending of resources to 11 addresses since 2018 do not prove that the holders of addresses are new to the sector.

It is also important to note that none of the 15 main addresses, according to rumors, are properties of Satoshi. Researcher Sergio Lerner showed that the blocks mined by Nakamoto contain unique standards known as Patoshi standards. Although this extracted BTC has not yet been moved, it has not been allocated to a single address.

The top 100 addresses concentrate 15.7% of the total supply, which is quite impressive compared to the level of distribution seen in traditional markets. For example, the top 20 funds that hold PayPal shares hold 19.7% of the total offering.

Five of the 15 most significant addresses are known exchange addresses, indicating that the apparent concentration does not exist in a way that can be attributed to whales.

In addition to exchanges that keep large sums of Bitcoins in portfolios, some custodians also accumulate BTC for several clients in portfolios spread over several addresses with large sums.

The main addresses are recent holders and not compatible with SegWit

An impressive number of eight of the top 15 addresses has never removed a single satoshi. Excluding the five addresses related to the exchange, only 20% have ever moved their currencies. This indicates a strong prevalence of hardcore hodlers.

Furthermore, 11 of the 15 addresses were first used less than three years ago. Several reasons may be behind this oddity, including enhanced security measures, a change of custody or different ownership structures.

Only two of the top 15 (and three of the 200) addresses are compatible with Bech32 SegWit, which can significantly reduce transaction fees. This indicates that users are resistant to change despite the clear benefits of cheaper transactions. Even more interesting is that the cold Bitfinex portfolio ranked second in the list is the only one that has ever had an outgoing transaction.

Some mysterious addresses keep piling up

The third richest address is a mystery, as it contains an untouched 94,506 BTC. The address made headlines in September 2019 after Glassnode reported that 73,000 BTC in the portfolio originated from Huobi.