A cryptocurrency wallet is a digital wallet (software) that allows people to interacts with various blockchain, enabling them to send and receive digital currency and monitor their balance.
Wallets store public and private keys which can be used to receive or spend a cryptocurrency.
People that want to own or use cryptocurrencies, need to have a digital wallet.
And what has been discovered by blockchain research unit Diar is that, more than half of the entire Bitcoin circulating supply, is controlled by cryptocurrency whales. Wallets controlled by these people account to only 1 percent of all available wallets.
These people control wallets with balances exceeding 200 BTC ($1.25 million) each.
"87% of Bitcoins are stored in wallets that are above 10 Bitcoins ($60,000+) - the total value just shy of $100 billion of the total market capitalization. These coins sit in only 0.7% of all Bitcoin addresses."
"And impressively, 1/3 of the Bitcoins that are sitting in these wallets, have never made an outgoing transaction, which, outside of exchange wallets could indicate either lost private keys, lowering real supply, or a very strong resolve by cryptocurrency believers."
What this means, the whales never moved any balance off their wallet after receiving anything.
Speculations concluded that those whales could be storing them for the reserves of cryptocurrency exchanges, or probably as long-term investors are keeping their faith in the king of cryptocurrencies.
But Dior also suggested that some of those sleeping Bitcoin wallets could actually be accidentally locked up due to the owners losing their private keys.
Furthermore, "the top-heavy ownership of Bitcoins of course does not indicate a select number of wealthy individuals solely however, as the largest wallets are owned by cryptocurrency exchanges that are holding the coins on behalf of clients. In fact, 3.8% of the total bitcoin supply are currently sitting in the top 5 wallets that are known to be managed by major exchanges - approximately $4.2 billion in value," continued Diar.