Only 14% of Bitcoin’s Addresses Belong to Private Investors, Chainalysis Study Shows

Francisco Memoria

A recently conducted study has recently shown that out all of bitcoin’s 460 million addresses created so far, only 14% belong to private investors, meaning the vast majority belong to cryptocurrency-related services.

The study, conducted by blockchain analytics firm Chainalysis, found that 25 million addresses are held by investors. It also found that out that out of all of BTC’s addresses only 172 million are seen as economically relevant, as they belong to users or firms that own the cryptocurrency. The report reads:

Out of the 172 million economically relevant addresses, Chainalysis has identified 147 million, or 86%, as belonging to named services, such as an exchange or a darknet market.

This notably means that out of nearly half a billion bitcoin addresses, only 27 million currently hold any BTC, while 37% of them are considered economically relevant. The remaining addresses, Chainalysis points out, are used to facilitate payments.

Per the firm, the non-economically relevant addresses are “typically single use and hold bitcoin for only a short time.” They’re considered “connective tissue” addresses, which “play a role in getting bitcoin from one person or service to another.”

Taking all of this into account, Chainalysis concludes that “on average only 20% of the bitcoin transaction value is economic, in that it is a final transfer between different people via economically relevant addresses.” The remaining 80%, it claims, is “returned as change.” This as when a portion of all BTC in a wallet is sent, it all moves.

In a given example, Chainalysis points out that between August and October of this year $41 billion worth of transactions were executed, while only $9 billion had real economic value. Earlier this year, as covered, Chainalysis’ research found that bitcoin whales are "a diverse group that may be stabilizing, rather than destabilizing, the market."

In another study, Chainalaysis found that concentrated ownership of Bitcoin Cash (BCH) was responsible for the cryptocurrency’s low adoption in commerce. This, as only 67 wallets controlled over half of the cryptocurrency’s supply at the time.

Hamas' Military Wing Asks Supporters for Bitcoin Donations, Again

Francisco Memoria

The Al-Qassam Brigades, the military wing of an organization designated as a terrorist group in Europe and the United States currently in control of the Gaza Strip, Hamas, have recently called on supporters for Bitcoin donations.

According to the Israel National News, the group has asked for cryptocurrency donations through a special page on its website that asked supporters for BTC to “Support the Resistance,” in a campaign that sees it state there’s a duty to “support jihad because Jerusalem is an integral part of the Islamic faith.”

This is notably not the first time the group asks its supporters for donations in the flagship cryptocurrency. Back in January, CryptoGlobe reported that a Hamas spokesperson, Abu Obeida, asked supporters for BTC via Instagram, in a post that read:

The Zionist enemy fights the Palestinian resistance by trying to cut aid to the resistance by all means, but lovers of resistance around the world fight these Zionist attempts and seek all possible means to aid the resistance.

The group has reportedly been looking to raise funds via cryptocurrency as it has faced financial woes in the last few years, as banks throughout the world have been distancing themselves from the organization. Hamas’ representative blamed Israel for its current situation earlier this year.

Hamas Tried To Raise Funds Through Coinbase

As reported, Israel-based blockchain intelligence startup Whitestream tracked down two bitcoin donations the cash-strapped group received after the January plea. Per Whitestream, Hamas’ address showed the group was using Coinbase, and received “two relatively small bitcoin donations” amounting to “only $2,500.”

These are said to have come from a bitcoin trader in Khan Yunes, a small town located in the Gaza Strip. Hamas, at the time, published two bitcoin addresses to receive funds, and the Israeli-based firm believes it had to do so after Coinbase blocked the first one.

Notably, the group’s military wing is asking for donations shortly after a Gaza rocket hit a home in central Israel, according to the BBC.