In what seems like a coordinated conspiracy or a “Deja Vous” case of coincidence, reports indicate that about 60% of the Bitcoins in circulation haven’t left the wallets this year. Sources report that cryptocurrency analyst Rhythm let the cat out of the bag when statistics were released via a Twitter post indicating that 11,580,000 Bitcoins haven’t moved in more than a year.
11,580,00 bitcoin have not moved in over a year.
Even with a 85% increase in price during that time, those millions of bitcoin were not sold or traded.
Hodlers of last resort are insane. pic.twitter.com/KTpeDrLlOO
— Rhythm (@Rhythmtrader) December 1, 2019
Rhythm also states in the tweet that even with a more than 85% increase in Bitcoin prices most of the HODLers didn’t move their coins. This, of course, has left many to wonder if Bitcoin is one big bubble or as some skeptics have indicated that Bitcoin may be just a bubble made to create wealth for those who were the first to buy the tokens.
Further, down the Twitter thread, several reasons were given for the lack of movement of some of Bitcoins at least. Firstly, down the years, many people have lost the keys to their wallets and so within the 11,580,000 Bitcoins, some will never leave.
On the other hand, there are the new entrants to the HODLer mentality that have caused a significant increase in the number of people holding onto their Bitcoins no matter what. This has created a shift in trends where the number of dormant wallets has stayed constant regardless of whichever direction the markets shift.
It also indicates that Bitcoin is fulfilling one of its original purposes which is to have a store of value because Bitcoins aren’t subject to inflation as they have a fixed supply and hence will retain their value regardless. It is also pertinent to note that the next series of halving events where new Bitcoins won’t be created will also drive up the prices of the digital asset leading them to “park” their Bitcoins, sit and wait or the right time.
In the world where there is a fixed amount of Bitcoins and where very few people are even aware of the significance of decentralized ledger systems with a cryptocurrency such as Bitcoin having market dominance (66.4%) at the moment, many think that the exponential appreciation in value will function in one direction. But with so much going for and against the cryptocurrency it will be foolhardy to assume such a position.
The truth is that Bitcoin won’t dominate the crypto space forever as the second generation and third generation cryptocurrencies, as well as other hard forks of other cryptocurrencies, will come and upend the current order of things. This doesn’t mean that Bitcoin will lose its value, however. It just means that the crypto space will expand while Bitcoin leads the charge. So, in many ways and respects, the HODLers are right but just like Rhythm said in his Twitter post: “Hodlers of last resort are insane”.
As at the time of filing this report Bitcoin (BTC) price stood at $7,287.55 indicating a -1.60% change in the past 24 hours.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.