20:23Value of holding bitcoin surpassing trading value
Now more than ever, bitcoin as "digital gold" is the prevailing narrative fueling big-name adoption, writes Coindesk. Bitcoin is something to be bought and stored, not something to be spent or used.
Why it matters: Bitcoin as a store of value is trouncing bitcoin as a medium of exchange. While the price of bitcoin is near its all-time highs, usage of bitcoin for anything other than investing has slowed.
By the numbers: Roughly 60% of all bitcoins have not moved in at least a year. The average time bitcoin is being held in individual wallets recently surpassed 1,000 days for the first time.
Between the lines: That said, bitcoin does function as a currency in two key places: darknet e-commerce and countries with economic instability.
Darknet volumes are still seeing a steady upward trend. Such marketplaces drew roughly $1.5 billion in revenue in 2020, up from just under $500 million in 2015. Overall, about 1% of crypto transactions last year were for illicit purposes.
"The fact that wallet-count is outpacing the volume of on-chain transactions illustrates the market’s belief that Bitcoin’s primary application is as a store of wealth," Coinbase wrote in an annual report published last week. "In short, people are holding their Bitcoin rather than sending or spending them."
|Total comments: 0|
|Traders Fear "Black Thursday" Comeback as Bitcoin Returns in March Mostly Negative, Statistics Say (0)|
|Bitcoin to $10,000 or $100,000 in 2021? (0)|
|Citigroup & Goldman Sachs: Bitcoin’s Moment Is Now (0)|
|Bitcoin’s Achilles Heel (0)|
|Spanish Court Orders the Investigation of Possible 'Computer Fraud' on Bittrex Exchange After a User Loses 1.3 BTC (0)|
|Bitcoin’s Nosedive below $45,000 Can Open Way to Continued Correction, Ethereum’s Repeats after Bitcoin (0)|