BITCOIN ‘whales’ holding staggering amounts of the cryptocurrency could crash the market, experts have warned.
It comes as Bitcoin soars to record amounts, which are currently worth $ 23,000 ($ 32,000) per coin.
And Bitcoin reached an all-time high of $ 41,973 on January 8 this year.
In December 2018, a single coin was worth $ 3,300, and in November 2013, one coin was worth as little as $ 350.
This astonishing progress has made millions of millionaires and billionaires for some investors.
Now experts have told the Telegraph how fears that Bitcoin “whales” hold too much influence over the market.
“Bitcoin’s trading market is very thin,” crypto-skeptic David Gerard said while speaking to The Telegraph.
“There’s not a lot of volume available to trade.
“The big players can easily move the price.
“And there are all sorts of trading shenanigans, which wouldn’t happen on a regulated market.”
About 2,500 “whales” are thought to control about 40% of the Bitcoin market.
Experts worry that single trades can make huge changes to the price of Bitcoin – drowning out any moves by smaller investors.
Gerard, who wrote Attack of the 50 Foot Blockchain, He added: “These big players have a lot of Bitcoin and are very active in the market. Anyone could break it.”
Some crafts can have startling values.
It’s common to see dozens of single crafts each worth tens of millions in one day.
And the price of Bitcoin is very volatile, having dropped about $ 10,000 from its highest of $ 42,000 earlier this month.
However, Bitcoin supporters argue that the coin has long-term value – there is evidence of its huge rise over the past decade.
What is Bitcoin?
BITCOIN did you baffle? Here’s what you need to know:
- Bitcoin is a virtual currency
- It is traded between people without bank assistance
- All transactions are recorded in a public ledger, or “blockchain”
- Bitcoin is created by mining
- Mining involves solving difficult math problems using computer processors
- Bitcoin can be traded anonymously, which can make it a popular way to fund illegal activities
- The value of Bitcoin fluctuates wildly
- Bitcoin is one of many different cryptocurrencies, but by far the most popular
Regardless of its price, Bitcoin remains a wild cultural phenomenon.
The internet went into a frenzy when a computer programmer recently revealed that he has only two password guesses left to access a $ 180 million Bitcoin account.
The device allows ten attempts – and has tried eight times.
If it does not get it right in the next two applications, it will be permanently encrypted and the fortune lost forever.
Stefan, who was born in Germany, received the Bitcoin in 2011 as a reward for doing animation.
But the price of Bitcoin has soared ever since – with a 720 percent increase since March 2020 alone.
Speaking about his lock-out, Stefan, who now lives in San Francisco in the US, said: “I’d just lie in bed and think about it.
“Then I would go to the computer with some new strategy and it would not work and we will get bored again.”
Many others have had difficulty exchanging cryptocurrencies as they have also forgotten their passwords.
Wallet Recovery Services, which helps find lost digital keys, said they get 70 requests a day.
Of course, the small amount of Bitcoin is £ 180million.
The richest Bitcoin wallet currently holds 141,452 Bitcoin – the equivalent of $ 4.6billion.
PS5 UK stock checker – Argos, BT and EE to release new PlayStation 5 stock
Mercury Greatong Elongation: A rare opportunity to easily see the tiny planet of Tomorrow
EASY TO SKIES
A full Wolf Moon lights up the sky next week – how and when to see it
WhatsApp Genius trick lets you open a conversation with YOURSELF to save texts and files
How to make a Bernie Sanders meme – generator lets you create one in seconds
In other news, Russian cyber-experts have warned of “Bitcoin murderers”.
WhatsApp has made a u-turn on its decision to throw controversial new terms at consumers next month.
And, allegedly, a hacker has tried to trap the penises of people who use internet controlled cages and demand a ransom.
We pay for your stories! Do you have a story for The Sun Online Tech and Science team? Email us at [email protected]