Bitcoin of Whale Definition

Kiev, Ukraine - May 16, 2021: Men hand puts gold coin with bitcoin symbol into slot of red donation box. Concept crypto currency. Selective focus

Bitcoin whales are Bitcoin investors that hold large amounts of Bitcoin or Bitcoin equivalents. This term may be used to describe exchanges, corporations, or individuals holding very large amounts of Bitcoin. Generally, Bitcoin whales are viewed with suspicion by the Bitcoin community because they are thought to manipulate the price of Bitcoin in order to their benefit. Browse bitcoinera.app/ if you want to get complete information about bitcoin trading. 

One possible reason for this is that trade volume reported on some exchanges is not accurate – it may have been accumulated by a single person, corporation, or even exchange in an effort to control the market.

Utilisation of Bots

Bitcoin whales have also been known to utilise bots in order to affect prices, particularly when it comes time for them to dump their coins onto the market. Although there currently seems to be no way for anyone else to see Bitcoin whales’ Bitcoin wallet addresses, some Bitcoin exchanges may allow you to view Bitcoin whale transactions on their respective blockchains.

In spite of these concerns, Bitcoin whales are generally believed to be performing a vital service in accumulating Bitcoin and stabilising market prices during downturns. Their existence demonstrates the decentralised power of Bitcoin itself – although they do control vast amounts of Bitcoin, there is no way for them to actually spend or utilise those coins without first converting them into fiat currency via an exchange.

There is a Bitcoin whale in the Bitcoin sea. The Bitcoin whales are very important to Bitcoin because they help with stability and growth. 

Facts About Bitcoin Whales

Listed below are some facts about one of those Bitcoin whales:

1. Bitcoin as an Investment (Bitcoin as something you purchase to sell or trade at a later date for profit) – Bitcoin has value because it’s accepted as payment by many companies and individuals, creates liquidity, and serves as a store of value. It also provides owners with the opportunity to produce more bitcoin by “mining” them through running complex mathematical algorithms on their computers (see Mining explanation).

2. Trading Bitcoin (buying and selling Bitcoins for fiat currency such as USD) – Bitcoins can be bought and sold on exchanges with US Dollars and other currencies. Bitcoin prices will fluctuate based on supply and demand; an increase in Bitcoin demand will cause the Bitcoin prices to go up, while a decrease in Bitcoin demand will cause Bitcoin’s price to go down.

3. Spending Bitcoin (almost like cash) – Bitcoin can be used to purchase items electronically, but it is not yet widely used for these purposes. The liquidity of Bitcoin varies depending on the willingness of people to transact using the currency.

4. Sending or accepting Bitcoin (peer-to-peer transactions or payments) -Any individual who has Bitcoins can send them over the blockchain to anyone else with a Bitcoin address by paying an extremely small transaction fee. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing mathematical proof that they have come from the owner of the wallet.

5. Bitcoin Mining (additional Bitcoin can be created in this process) – Bitcoin miners run hardware for the sole purpose of mining Bitcoin. Miners can profit if the price of Bitcoin goes up, but they also risk losing money if Bitcoin prices drop too low.

6. Bitcoin Whale Information: The biggest Bitcoin whale in all of blockchain history is named “Hosho”. This Bitcoin whale holds over 1 million Bitcoins! That’s worth about $550 Million Dollars at today’s Bitcoin price (December 2017). Bitcoin whales like Hosho are helpful because they will buy Bitcoin at times when the Bitcoin market is falling, which helps Bitcoin regain some stability. If Bitcoin miners sell all of their Bitcoin at once, Bitcoin will become unstable and its value could drop quickly.

Conclusion

The Bitcoin Whale definition is someone that holds a substantial amount of Bitcoin. Bitcoin Whales are often seen as the big players. Bitcoin Whales are looked up to for advice, guidance, and opinions on Bitcoin. Bitcoin Whales could change the market with their trades, but it is important to remember that Bitcoin Whales can be both right and wrong in their predictions and opinions about Bitcoin. 

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.