July 29 2019

4 Millions Bitcoins Lost 4ever 😲 🔥

According to a CoinMetrics study, the number of “intact” bitcoins reached a record high.

As of July 19, there were 3,847,859 BTC that had not moved for at least the last five years, which is 21.6% of the total number 1 cryptocurrency put on the market and in current prices is equivalent to almost $ 40 billion.

The analysis also showed that more than 50% of the extracted bitcoin has not yet been used to conduct transactions for more than a year.

As it stated in the company report: CoinMetrics calculates the number of intact bitcoins by subtracting from the total supply of bitcoins the volumes that were made “at least once during a certain period of time”.

Matt Odell, a digital currency analyst, believes that the growing number of bitcoins held for five years suggests that BTC is increasingly being used as a means of accumulating value, and not as a medium of exchange.

In confirmation of this, another study conducted by the New York-based company Chainalysis Inc showed that only 1.3% of transactions with bitcoins in 2019 were made by merchants. The remaining 98.7% of the volume circulate exclusively on the exchanges.

Crypto analyst Willy Woo, a partner at Adaptive Capital, noted that if the number of bitcoins withheld continues to grow, this will lead to low levels of circulation. As a result, the volatility of BTC can increase significantly.

The analyst’s fears may be justified, given that Grayscale Investments reportedly holds about 1% of the turnover supply of cryptocurrency # 1, or 203,000 BTC (about $ 2 billion at current prices).

It is also known that Block.one, the company behind the colossal $ 4 billion ICO EOS, holds about 140,000 BTC, which currently stands at about $ 1.4 billion.

Chainalysis’s research also showed that from 3.79 to 2.78 million bitcoins, i.e. up to 25% of the total turnover of BTC supplies may be lost forever.

Chainalysis estimates were made after segmentation of the amount of BTC in circulation based on age (bitcoin consciousness moment) and transaction activity. For certain segments, the company’s researchers used a statistical sample to determine the number of lost bitcoins.

The reason may be the improper use or loss of private keys, as well as the failure of the physical storage devices of “cold wallets” – hard drives, flash drives, cell phones …

Inaccessible for transactions will also be balances on wallets when their size becomes less than the commission fees of the trading floor.

Given the limited issue of the BTC coin as such, the above factors are becoming an additional powerful driver for increasing the value of digital gold.

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Posted 29.07.2019 by admin in category "Crypto World News