Cryptocurrencies, specifically Bitcoin, are revamping the status quo, favoring personal gain
The graphic circulating on social media, released by River, a bitcoin company, presents an intriguing snapshot of the distribution of Bitcoin and gold price. However, it's important to remember that such visuals may not tell the whole story. A comprehensive report titled "What drives bitcoin adoption in 2025?" offers a more balanced perspective.
According to the report, individuals continue to hold a significant portion of Bitcoin. By the end of 2024, almost 70% of the Bitcoin money supply was in the hands of individuals, with about 14.5 million bitcoins. This is a stark contrast to gold, where gold.org's chart shows that governments currently hold only 1.4% of Bitcoin, while central banks alone hold 17% of available gold.
In the world of gold, the most decentralised form is gold in the form of jewelry, with 45% tied up in rings, chains, and bracelets. Bars and coins make up around 22%, with nearly 10% held by ETFs. However, sovereign wealth funds likely hold several thousand tons of gold, not included in the chart.
On the other hand, Bitcoin shifts wealth from institutions and companies to individuals. Funds, companies, and governments together accounted for less than 12% of the bitcoin money supply, or about 2.5 million bitcoins. If Bitcoin becomes the store of value of the future, something significant has indeed changed.
The report also reveals a dramatic change in bitcoin accumulation that occurred in 2024. Individuals transferred around half a million bitcoins to funds and ETFs. This shift is not reflected in the graph, underscoring the importance of considering the report's findings in their entirety.
In contrast, the chart from the Peter G. Peterson Foundation shows that individuals holding government bonds directly in their portfolio could be up to 21% of the 28.7 trillion dollars in government bonds. However, the actual share is likely to be significantly lower, with the upper limit of government bonds held directly by individuals estimated at roughly 6.2 trillion dollars.
The chart from the Peter G. Peterson Foundation does not provide clear values for the distribution of gold or government bonds held by funds, companies, foundations, etc. Similarly, the report does not provide clear values for the distribution of gold or government bonds.
In conclusion, while the graphic provides a snapshot of the distribution of Bitcoin and gold price, the report offers a more comprehensive and nuanced understanding of the current state of these assets. The shift in Bitcoin ownership from individuals to funds and ETFs in 2024 is a significant development that warrants closer attention.
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