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About 60% Of Bitcoiners Remained Dormant For More Than A year, Is It Good Or Bad?

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About 60% Of Bitcoiners Remained Dormant For More Than A year, Is It Good Or Bad?

  • The total number of Bitcoins in circulation right now is more than 18 million.
  • Only 40% of bitcoin participated in the change of bitcoin price throughout the year 2019.
  • Bitcoin entered a two-year-long bear market, rising a bit, falling more, and so on.

As everyone is aware that the total number of Bitcoins in circulation right now is more than 18 million. This indicates that almost 60% of Bitcoins have remained dormant for more than a year.

In simple terms, only 40% of bitcoin participated in the change of bitcoin price throughout the year 2019. Remaining bitcoin holders, no matter how the market fluctuated, were intact emerged as the most solid bitcoin Hodler. Hodler is a term referred to those who hold Bitcoin for a long time and do not sell it.

Every day, more and more people are actively joining the Hodler family. This might be because of the 2014 tragedy where an old post stated that at 4,800 yuan, the landlord secretly took 480,000 yuan to buy a house and started with 100 bitcoins.

It had not even been three months, and the price of bitcoin dropped by 50%. The landlord stole the money to buy the house and speculated that his wife and his family found the family mess. This did put a lot of pressure on the landlord.

During the numerous quarrels, even the mother-in-law called out to sell coins in the middle of the night. After staying there for a month, Bitcoin finally rose back to its original value. The landlord burst out of good intentions and spent 10,000 yuan on the spot to charge friends.

However, Bitcoin entered a two-year-long bear market, rising a bit, falling more, and so on. One day in 2016, the landlord finally couldn’t handle it, losing 180,000 cutting meat. Leaving the field, never appeared in the post again.

The website Lookintobitcoin shows that 90.3% of the days, Bitcoin is profitable. Well-known Wall Street analyst Thomas Lee, a well known Wall Street analyst, stated that in the past few years, the annual revenue of Bitcoin would be -25%. It only performed well in 10 trading days.

It can also be observed that in most cases, the two negatively correlated. When the market starts to fall, the number of Hodl gradually increases, and whenever the number of Hodl continues to decrease, the market also peaks.

Though Hodler is not simple, the return data tells us that Hodl’s strategy is quite useful. Many voices in the market suggest to call on everyone and join the coin hoarding party, like the Jiu Shen’s “Bitcoin Hoarding” and Li Xiaolai’s scheduled investment class. 

Here arises the question that can the scenario of more Hodler be good for Bitcoin. The answer to it is yes. The logic is simple if there is a supply-demand relationship in the Bitcoin market, so when demand exceeds supply, the prices naturally rise. 

Hodl is artificially reducing the supply, which can make the price of Bitcoin more likely to rise to a certain extent.

However, from another perspective, people who insist on Hodl believe that the price of BTC will become higher and higher. When such a “price consensus” is getting stronger, it is difficult to say that this is not a bit good for Bitcoin. So, although Hodl cannot directly change the development of Bitcoin, calling it completely useless would be wrong. 

Whether it is coin hoarding or speculation, all played in the financial market. So, it’s natural for people to profit, and they cannot judged with simple words of right and wrong.

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