Litecoin distribution is similar to Bitcoin

Recently, Steven Englander, a currency analyst at Citi, said that the wealth distribution of Bitcoin is extremely uneven, with one in a thousand people owning 50% of Bitcoin, while one in a hundred people owning 80% of Bitcoin. This situation may be similar to that of North Korea. The website commented that if Bitcoin is used as a substitute for the US dollar, it will cause serious social problems. But if it is just a supplement, the result may not be so bad.

Englander pointed out that there are currently an estimated 1 million Bitcoin owners. If ranked by the number of holdings, the top 47 people own 30% of them, the next 900 own 20%, the next 10,000 own 25%, and the remaining 1 million own 20%. The whereabouts of the remaining 5% of Bitcoin are unknown.

According to calculations, one in a thousand people own 50% of Bitcoin, while one in a hundred owns 80% of Bitcoin. Many of them have been holding Bitcoin since the early days, waiting for its appreciation.

The distribution of Litecoin is similar to that of Bitcoin.

In economics, people use the "Gini coefficient" to judge the fairness of income distribution. Its value is between 0 and 1. The smaller the coefficient, the more evenly the wealth is distributed, and vice versa. The "Gini coefficient" of Bitcoin is 0.88 (if a large account has multiple accounts, the value will be larger). According to existing data, no country's "Gini coefficient" exceeds 0.85. Of course, there is data from South Korean research that North Korea's "Gini coefficient" in 2002 was 0.86.

The uneven distribution of Bitcoin wealth will become a disadvantage for it to become a means of payment.

If Bitcoin is regarded as the "terminator" of the US dollar, serious social problems may arise because the distribution of wealth is too unfair.

However, if we regard Bitcoin as a supplement to the US dollar system, we can compare Bitcoin to a company, and the holders become shareholders. Then the distribution of Bitcoin's "shareholders" is similar to that of many companies, and the result may not be so bad.