Bitcoin virtual currency: 1000 people hold 40% of bitcoin

There are some people who hold so much bitcoin that it could disrupt the market. These individuals are known as "bitcoin whales"

On November 12, 2017, an investor transferred 25,000 bitcoins (equivalent to 375 million USD) on the virtual currency exchange Bitfinex. For many hours, the virtual currency investor community tried to find out who this investor was because they were worried that if this person sold a lot of bitcoin, the price would plummet. Finally, the investor stopped selling.

"Bitcoin Whale"

The above story shows a worrying reality in the bitcoin virtual currency trading market. That is, some people hold so much bitcoin that it can disrupt the market. These individuals are known as "bitcoin whales". They can manipulate prices to get rich at the expense of millions of "small fish" investors. For example, "whales" can coordinate to buy bitcoin in bulk to artificially increase the price to sell it at a high price to profit.

Manipulation of the bitcoin trading market is not punished because there is no law regulating this market. Lawyer Martin Mushkin specializing in bitcoin commented: "There is no transparency whatsoever in this market. In the normal financial sector, everything that is material must be disclosed. And in the world of virtual currency , there are no binding regulations".

In March 2017, the US Securities and Exchange Commission (SEC) rejected the project of twin brothers Tyler and Cameron Winklevoss to register a market price for a fund to support investors in easily trading bitcoin. than. The SEC explained the reason for the refusal was due to the lack of regulations governing the bitcoin market.

Many other famous economists also have the same thoughts. Economist Paul Krugman (Nobel 2008) compared bitcoin to evil. Professor Robert Shiller at Yale University (Nobel 2013) said that "the current craze in bitcoin transactions is not proportionate to the current value".
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