As the analysis company Chainalysis announced in a new blog post yesterday, only 19% of the bitcoins in circulation are used for active trading in the cryptocurrency. In the long term, this could be a positive sign for the digital asset because it suggests that many investors are using Bitcoin as a permanent investment.
20% have not moved in the past five years
For all those who are new to the crypto market: unlike many cryptocurrencies, bitcoins are not all in circulation yet. This is because new bitcoins are still being mined through complicated computing processes until the number of 21 million is reached. To date, 18,6 million bitcoins have been "mined".
Chainalysis divides the previously mined bitcoins into three different categories to get a better picture of what investors are considering the digital asset:
- 60% of bitcoins are held by "economic units" - private and corporate. More than 25% of the bitcoins received were never sold and often held for years. This group describes Chainalysis as investors who use Bitcoin as "Long-term investment " consider.
- 20% of bitcoins have not moved in the past five years. These are called "lost bitcoins" designated.
- The remaining 3,5 million bitcoins, which corresponds to 19% of all mined, regularly move between exchanges and private investors. These are called "Bitcoin for trading" designated.
The last bitcoin is mined in 2140
According to data from Chainalysis The current developments and the figures mentioned above indicate that Bitcoin is viewed by more and more people as digital gold and is thus held in the long term. Bitcoin has the advantage that there is an active trading market and enables investors to buy and sell whenever they want.
It will take until 2140 until the remaining 2,4 million bitcoins have been mined. If you are wondering why it only took a little more than 18,7 years for the first 10 million: This is due to the so-called Bitcoin Halving, which halves the block rewards every four years. The last halving, which had only taken place a few weeks ago, reduced the reward for miners from 12,5 to 6,25 bitcoins.
For miners, however, this does not mean the end. You will continue to be paid for confirming transactions through transaction fees.
Markus from Kryptokumpel.de
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