Bitcoin hodling has increased over the years, especially since 2015, but this time it is not large institutional investors, but rather small investors who hold one or more Bitcoins.
According to Glassnode, a blockchain company, the number has more than doubled since 2015. As of January 14, there were around 74,000 addresses with one or more Bitcoins, an increase of 11 percent over the previous year.
According to a Denver-based crypto analyst for Digital Asset Data, that steady surge is a product of drifting around by retail buyers.
This address growth can also be due to big players or exchanges, although such addresses usually boast huge balances which are known to be at the top of Bitcoin’s rich list, which is basically the first row of addresses with the greatest number of Bitcoins.
For example, three of the top 5 addresses on the Rich List belong to the exchanges Huobi, Bitfinex and Binance, respectively, and at the top of this list is Huobi, which currently holds 255,502 Bitcoins.
to be allowed to adjustment will a store of valuee?
Another Digital Asset Data analyst, Connor Abendschein, stated that the increasing number of addresses hoarding more and more bitcoins suggests acceptance as a store value is increasing.
Bitcoin’s price rose from $ 3,600 to $ 13,800 in early 2019 before falling back to $ 6,430 at the end of the year. Nevertheless, the number of addresses rose by 77,000 in one year.
However, many investors still believe that BTC is too volatile to act as a substitute as a store of value.
Bitcoin hodling and distributionn of wealth
Crypto asset analyst Yassine Elmandjra spoke to CoinDesk about how the growth in unique Bitcoin addresses could only be an indication of a sustained increase in Bitcoin’s wealth distribution and not a sign that Bitcoin is being throttled.
Nonetheless, the market is still dominated by whales, whether it’s Bitcoin or not. In December, investors with 1,000 to 1 million BTC had 42.1 percent of the total supply compared to 37.9 percent in 2017.
Featured image from BitcoinWiki