Good and Bad at the same time - Mega entities hold $ 14 billions in Bitcoin

[posi]

Have you thought what would happen if they sold all those bitcoins at once? As many have pointed out, the majority of bitcoin being owned by one organization or individual has never been considered a good thing. It does not reduce the supply of bitcoin circulating in the market and on the contrary, it can be pushed to the market at any time. And what happens next you probably already know.

Bitcoin becomes more valuable not only because of its scarcity but also because of the utilities it brings to us that are really useful to us. But many say scarcity is what helped bitcoin achieve its value today. Creating a coin with a finite supply is not too difficult, but creating a coin that is decentralized and has as many use cases as bitcoin is impossible.

I don't think that an asset like bitcoin is bought for a huge sum only to sell it in one fell swoop. Most likely, these are people with strong nerves. As for decentralization, bitcoin hasn't been decentralized for a long time, but is mostly in the hands of manipulators who play the exchange rate the way they want it to be played

Bitcoin is still decentralized and always will be because even though sharks can buy large amounts of bitcoin for the purpose of price manipulation, they will never be able to buy all of everyone's bitcoin. Furthermore, they can only manipulate prices for short periods of time to make profits, they cannot manipulate the entire bitcoin network. Don't forget that in addition to speculators like us, there are many people who use bitcoin as a currency or storage asset, and whales cannot manipulate those bitcoins.

[traderethereum]

There are good and bad influences from entities holding large amounts of Bitcoin.
You have already mentioned the good and bad effects and the consequences that could result if one of these things happened.
I don't think about the impact, but it will help the adoption of bitcoin.
If a bad influence happens, the market will surely crash and people will panic, which is the best moment to buy bitcoins.
And when good influences occur, market conditions will improve and cause prices to rise.
That's when it's time to take advantage of the moment that happened.

[Mauser]

That's a lot of money under one roof of each entity mentioned above. It should make us think whether this is good or bad to Bitcoin economy? Since these much Bitcoin are under their custody they have full control of it and we have already seen what happens when such entities get hacked for their data leak. The case of FTX is the biggest lesson for us.

However, having that much significant amount can also be good for bitcoin economy since it is in holding for long terms. It is like having that much less Bitcoin in the circulation. It may or may not have an effect on the demand and supply but I wanna ask, does it have any?

When it comes to Robinhood I am very sceptical of their actions after the whole GameStop debacle. They are very close to the Hedge Fund industry and might have some arrangements the public doesn't know about. As for Binance and Bitfinex I think it's normal for a large exchange to also hold large amounts of the number one traded security. We all know about the long term trend of Bitcoins, so why shouldn't big institutions profit from it as well. The next halving is just around the corner and it's only a matter of time for the price to pick up again. It's true that there some benefits of large institutions holding many coins, it reduces the trading supply and will also push the price up. So, for Bitcoin holders it’s a good thing, and for new investors that are trying to build their crypto portfolio it’s a bad thing. The question is how many of the customers are leaving their coins long term at the exchange and how many are actively trading them. The issue with long term storage of coins at the exchange is that it could lead to big losses if the exchange comes into financial difficulties.

[Sayeds56]

Reading through the coin desk's newsletter today I came across news about Robin Hood and it's holding analysis. Apparently the HOOD company has reached Top #3 in the list of who holds the most Bitcoin in the world.

Current stats:

Binance : ~ $6.3 billion
Bitfinex : ~ $4.3 billion
Hood     : ~ $ 3.0 billion

It is an interesting topic of debate and discussions in crypto communities. However, few entities holding Bitcoin worth 14 Billion dollars can be viewed both positively and negatively, depending on one's perspective. The large means in Bitcoin means legitimacy by institutions and it can lead to price stability as institutional investors generally tend to hold their assets for long term.

On the other hand, it can be seen as concentration of wealth in few hands which can raise concerns about inequality. Furthermore, large amount of Bitcoin holdings by limited number of entities can potentially lead to price manipulation, posing harm to small investors.

[yhiaali3]

Certainly the accumulation of such huge amounts of Bitcoin in the hands of a few centralized companies is not healthy for the market at all. Accumulating large amounts of Bitcoin in the hands of a few people increases the risks of centralization and market manipulation.

The other bad thing is that these large numbers indicate the large number of users who are still keeping their coins in the exchanges instead of keeping them in their safe wallets. These people do not realize what they are doing because they are risking their coins and also allowing these large amounts to accumulate in the hands of the central exchanges, and then if any accident happens they start... By screaming and crying.

[Hanadawa]

~

People should be able to learn from the FTX case (link:Bankruptcy of FTX). Keeping a large amount of BTC on an exchange is not the right choice. But it is possible that it also includes the accumulated amount of many users who deposited their small amount of BTC there.
Indeed, legally the company belongs to the exchange because they own the keys. But I wonder if there has ever been an exchange that has taken advantage of BTC from users to manipulate the market?

[spectre71]

14 billion is nothing at all at this scale. What 2.8% of market cap?

Elons tweets have done considerably more damage than any institution.

Those whales will add much more stability than a sea off FOMO clowns.

[DrBeer]

Reading through the coin desk's newsletter today I came across news about Robin Hood and it's holding analysis. Apparently the HOOD company has reached Top #3 in the list of who holds the most Bitcoin in the world.

Current stats:

Binance : ~ $6.3 billion
Bitfinex : ~ $4.3 billion
Hood     : ~ $ 3.0 billion

That's a lot of money under one roof of each entity mentioned above. It should make us think whether this is good or bad to Bitcoin economy? Since these much Bitcoin are under their custody they have full control of it and we have already seen what happens when such entities get hacked for their data leak. The case of FTX is the biggest lesson for us.

However, having that much significant amount can also be good for bitcoin economy since it is in holding for long terms. It is like having that much less Bitcoin in the circulation. It may or may not have an effect on the demand and supply but I wanna ask, does it have any?

Robinhood Revealed to be Third-Largest Bitcoin Holder With $3B in BTC
Robinhood transferred some 118,300 bitcoin to the wallet from several other smaller wallets over a three-month period.

Investing and trading platform Robinhood (HOOD) holds over $3 billion in bitcoin (BTC) in a single wallet that attracted the holdings over several months, wallet data from Arkham Intelligence shows. This makes it the third-largest bitcoin holder behind crypto exchanges Binance and Bitfinex, which hold $6.4 billion and $4.3 billion worth of tokens on single wallets respectively.
The wallet previously gained notoriety among market watchers in the past few months as the identity of its owners sparked conversations and concerns about who the mysterious owner of such a large amount of bitcoin could be.

As of Monday, Robinhood has not publically commented on these holdings.
The transfers sparked speculations ranging from the bitcoin holdings belonging to financial behemoth BlackRock, which filed for a Bitcoin ETF earlier this year, to crypto exchange Gemini shifting its users’ holdings to a wallet.
Robinhood transferred some 118,300 bitcoin to the wallet from several other smaller wallets over a three-month period, data shows. These tokens are custodied by crypto trading firm Jump Trading, Arkham representatives confirmed to CoinDesk in a Telegram message.
All of these holdings are held on the Bitcoin blockchain. The first transactions were made on March 8, after which huge amounts of bitcoin were transferred until July 14, data from BitInfoCharts show.
Meanwhile, the holdings shed light on the extent of Robinhood’s bitcoin exposure despite low crypto trading volumes on its platform.

Source: Robinhood Revealed to be Third-Largest Bitcoin Holder With $3B in BTC

No surprise there. Crypto exchanges need MASSIVES of bitcoin to manipulate the market. Manipulation of billions (in terms of dollars), gives a huge income, both when the cryptocurrency grows and when it falls.

I hope you don't think they are just holding these huge sums for themselves ? If the exchanges bought bitcoin for example 60.000 dollars - the amount of holding is of course huge, but you can also calculate the loss, at today's price, provided that it is the amount of accumulation and not the amount for market manipulation.

[ultrloa]

Reading through the coin desk's newsletter today I came across news about Robin Hood and it's holding analysis. Apparently the HOOD company has reached Top #3 in the list of who holds the most Bitcoin in the world.

Current stats:

Binance : ~ $6.3 billion
Bitfinex : ~ $4.3 billion
Hood     : ~ $ 3.0 billion

That's a lot of money under one roof of each entity mentioned above. It should make us think whether this is good or bad to Bitcoin economy? Since these much Bitcoin are under their custody they have full control of it and we have already seen what happens when such entities get hacked for their data leak. The case of FTX is the biggest lesson for us.

However, having that much significant amount can also be good for bitcoin economy since it is in holding for long terms. It is like having that much less Bitcoin in the circulation. It may or may not have an effect on the demand and supply but I wanna ask, does it have any?

Robinhood Revealed to be Third-Largest Bitcoin Holder With $3B in BTC
Robinhood transferred some 118,300 bitcoin to the wallet from several other smaller wallets over a three-month period.

Investing and trading platform Robinhood (HOOD) holds over $3 billion in bitcoin (BTC) in a single wallet that attracted the holdings over several months, wallet data from Arkham Intelligence shows. This makes it the third-largest bitcoin holder behind crypto exchanges Binance and Bitfinex, which hold $6.4 billion and $4.3 billion worth of tokens on single wallets respectively.
The wallet previously gained notoriety among market watchers in the past few months as the identity of its owners sparked conversations and concerns about who the mysterious owner of such a large amount of bitcoin could be.

As of Monday, Robinhood has not publically commented on these holdings.
The transfers sparked speculations ranging from the bitcoin holdings belonging to financial behemoth BlackRock, which filed for a Bitcoin ETF earlier this year, to crypto exchange Gemini shifting its users’ holdings to a wallet.
Robinhood transferred some 118,300 bitcoin to the wallet from several other smaller wallets over a three-month period, data shows. These tokens are custodied by crypto trading firm Jump Trading, Arkham representatives confirmed to CoinDesk in a Telegram message.
All of these holdings are held on the Bitcoin blockchain. The first transactions were made on March 8, after which huge amounts of bitcoin were transferred until July 14, data from BitInfoCharts show.
Meanwhile, the holdings shed light on the extent of Robinhood’s bitcoin exposure despite low crypto trading volumes on its platform.

Source: Robinhood Revealed to be Third-Largest Bitcoin Holder With $3B in BTC

No surprise there. Crypto exchanges need MASSIVES of bitcoin to manipulate the market. Manipulation of billions (in terms of dollars), gives a huge income, both when the cryptocurrency grows and when it falls.

I hope you don't think they are just holding these huge sums for themselves ? If the exchanges bought bitcoin for example 60.000 dollars - the amount of holding is of course huge, but you can also calculate the loss, at today's price, provided that it is the amount of accumulation and not the amount for market manipulation.

If they care about those lose for sure they might not exist for long years and for sure they are still bullish with holding that balances since there business still doing good and might the amount hodl is use for series of manipulation cases.

One of the reason why we always see a price fall if one of this institution fall or scare people about possible collapse since they can manipulate people to do dumps due to that amount they hold which possibly throw out once bad faiths come with them.

[arabspaceship123]

Many exchanges suffer hacks so it doesn't make sense to leave cryptocurrencies with them. If you don't have your private key you've lost control of your money it's a rule to obey. If ppl don't want to download full nodes for each coin choose light wallets but leaving money with exchanges isn't safe.

Certainly the accumulation of such huge amounts of Bitcoin in the hands of a few centralized companies is not healthy for the market at all. Accumulating large amounts of Bitcoin in the hands of a few people increases the risks of centralization and market manipulation.

The other bad thing is that these large numbers indicate the large number of users who are still keeping their coins in the exchanges instead of keeping them in their safe wallets. These people do not realize what they are doing because they are risking their coins and also allowing these large amounts to accumulate in the hands of the central exchanges, and then if any accident happens they start... By screaming and crying.

[MusaMohamed]

Many exchanges suffer hacks so it doesn't make sense to leave cryptocurrencies with them. If you don't have your private key you've lost control of your money it's a rule to obey.

Hacks are not worst thing to happen for cryptocurrency exchange users because if a solid exchange is hacked, they can compensate their users instantly or gradually.

Poloniex Claims All Customers Repaid Following March Bitcoin Hack
Bitfinex hack, reaction through BFX tokens to users
Hackers steal $40.7M in bitcoin from Binance

The worst thing to cryptocurrency exchange users is an exchange makes a scam exit. They will lose all cryptocurrency in their account on that exchange.

Hacked Exchanges since 2011
Exchange graveyard (Rest in peace). They rested in peace but their users don't, they have to live with pain.

[Pierre 2]

This was a bad thing in past because we were worried big companies/holders could crash Bitcoin singlehandedly. But I think this is not issue anymore because Bitcoin is lot more based. It became part of global economy with millions of users. In such worrying dump, many people that uses Bitcoin would be part of buying list. So honestly it's just nothing to worry anymore. Bitcoin has proven value that will make people keep buying and using.

[lixer]

I really can't understand some Bitcoiners.
On one hand, many Bitcoiners want big companies, investment funds and banks to buy more BTC and pump the Bitcoin price. On the other hand, there are Bitcoiners, who are bitching and complaining that "the big whales are manipulating the market" and "Bitcoin is under the control of a few big corporations". What do you people want? Mass adoption(including from the big corporations) or less adoption?
Two of biggest centralized crypto exchanges are holding Bitcoins worth billions USD. Is this supposed to be big news? Is this supposed to be bad news? To be honest, I don't care. Holding 6 billion USD in Bitcoins isn't such a big deal. The BTC market cap and trading volume are way bigger.
Yes, those crypto exchanges might collapse like FTX. And so what? I never used them. The people, who are using them do this at their own risk.

That is because there are two sides of people. So, you should get used to it already. Just side on the group that you have a similarity and just ignore the other. As for me, of course I want mass adoptions so I can allow those big corporations to enter here. If we are happy that they can pump the price, we should also accept that they can dump it as well.

But, is it really a disadvantage? For me no. It was actually an advantage as I can buy coins at a cheaper rate. It's normal for an exchange ( especially the top ones ) to hold a large sum of money. It's not a new thing and it's not a bad news, but it can be a good thing to know because it shows many people are now into cryptos.

[dansus021]

you can add https://www.coingecko.com/en/public-companies-bitcoin this to your list the top HOLDER is Microstrategy with 4 Billion USD and almost 1% of total supply crazy right?
I think this trend not gonna stop here if all ETFs is approved by the SEC there is so much possibility that maybe 20%-25% bitcoin total supply will likely held by big companies including BlackRock.

The good thing is now other major companies or retail will look BTC more but the downside is bitcoin price might have a great correlation with world economy.

[so98nn]

This was a bad thing in past because we were worried big companies/holders could crash Bitcoin singlehandedly. But I think this is not issue anymore because Bitcoin is lot more based. It became part of global economy with millions of users. In such worrying dump, many people that uses Bitcoin would be part of buying list. So honestly it's just nothing to worry anymore. Bitcoin has proven value that will make people keep buying and using.

Yes the course has changed a lot over the period of time and it’s various applications industry wide are suggestive that it’s not going to be easy to be manipulated by single entity. Just realised someone made a good point about how it is not the money of single entity but belongs to various users. Though I disagree with the fact that it could be in the possession of the entity were they keeping the money. However it’s again the melodrama about who has got the more power and it seems even the most powerful entities won’t be able to move the market as it’s even more rigorous volume out there. 

[retreat]

If you compare the value they hold with the market cap of Bitcoin as a whole, it is not large, you could even say it is small. However, it is true that when some entities hold a lot of Bitcoin in their hands, it means that the opportunity for them to manipulate the market may exist, but looking at the large market cap of Bitcoin, it will be difficult for them to control the market.

[South Park]

If you compare the value they hold with the market cap of Bitcoin as a whole, it is not large, you could even say it is small. However, it is true that when some entities hold a lot of Bitcoin in their hands, it means that the opportunity for them to manipulate the market may exist, but looking at the large market cap of Bitcoin, it will be difficult for them to control the market.

The danger of a small number of actors holding a lot of bitcoin is that they can act in a concerted manner and move the market as they want just when they need it the most, increasing their profits or their holdings, depending on what they may want at the time, so even if the amount they are holding is small compared to the market cap of bitcoin, if they were to act all at the same time you can be sure the price of bitcoin will move abruptly on the direction they want.

[panganib999]

If they are holding it for security, sure it's great for the economy both ways, they aren't expected to sell these at a regular company issue, and of crouse this decreases the circulating supply of bitcoin which makes it even more valuable. Plus these kinds of news are great for bitcoin for some reason, as it inspires more people to invest and buy bitcoin just like what happened in 2020 when Elon Musk bought bitcoins for SpaceX, and Tesla, albeit selling these holdings eventually though.

You could also be correct, it centralizes the purchasing power to the few, but if you'll ask me, the dynamic isn't that too inclined towards these companies in bitcoin compared to fiat, which means the public still holds as much power against these private entities as they have over the people.

[Gyfts]

However, having that much significant amount can also be good for bitcoin economy since it is in holding for long terms. It is like having that much less Bitcoin in the circulation. It may or may not have an effect on the demand and supply but I wanna ask, does it have any?

Say some portion of these entities are coins being used for long term storage, whereas the remaining percentage are user funds that can be circulated in the market -- the portion of coins being used for long term storage theoretically limits the supply and makes Bitcoin more valuable, even if it's a small amount of the total Bitcoins in circulation.

To your point about FTX, if a large holder ends up getting hacked, it has lasting effects on the market. It would be preferable to me if single entities didn't hoard large amounts of BTC, but that's not up to anyone as to how much BTC should someone can hoard. I suppose it's up to consumers to decide who they trust their coins with, which should be no one but themselves but to each his own.

[Unbunplease]

Bitcoin is gradually becoming a trading instrument like securities, gold, silver, oil and so on.  The main advantage of bitcoin is its absolute liquidity. Also, bitcoin trading uses instruments that are familiar to ordinary traders, which is a great advantage