According to an article in the cryptocurrency journal Diar on September 17, at present, more than 55% of the Bitcoin currency in circulation is placed in a wallet with a balance of at least 200 Bitcoins. In the past 11 months, as the Bitcoin price broke through the $5,000 mark, the value of Bitcoin in these wallets has exceeded $1 million. Impressively, one-third of the Bitcoins in these wallets have never been traded abroad. This may mean that the owner of the wallet has lost the private key, thus reducing the actual Bitcoin. The supply is either a firm believer in the cryptocurrency.
Despite the deep bear market in 2018, long-term investors still have confidence in Bitcoin currency. Diar’s data shows that, based on the current price of Bitcoin, most of the circulating Bitcoin (55%) is placed in the wallet with a value of more than $1.3 million.
More than 87% of Bitcoin is stored in a wallet with a balance of at least 10 Bitcoins (more than $60,000) — the total value is slightly less than the $100 billion of the total Bitcoin market value. However, these wallet addresses only account for 0.7% of all Bitcoin addresses.
At the same time, the number of wallet addresses with a balance of at least 100 Bitcoins (worth at least $640,000) is only less than 0.1% of all Bitcoin addresses, but it accounts for 62% of total Bitcoin circulation.
Of course, the wallet address with the most Bitcoin is not the richest investor, because the wallet with the largest number of Bitcoins belongs to the cryptocurrency exchange that holds the Bitcoin on behalf of the customer. In fact, the number of Bitcoins contained in the wallets managed by the five major exchanges currently accounts for 3.8% of the total Bitcoin supply, valued at approximately $4.2 billion.
The strong believers of Bitcoin have been purchased Bitcoin.
When Bitcoin history prices reached their highest point in December 2017, 42% of Bitcoins with more than 200 Bitcoins were never transferred. Since then, the number of Bitcoins contained in approximately 27% of wallets has continued to increase.
However, an analysis conducted earlier this year by blockchain analysis firm Chainalysis showed that between December 2017 and April 2018, the total selling price of Bitcoin was as high as $30 billion. According to the report, as early as April this year, nearly one-third of the Bitcoin supply was concentrated in the hands of 1,600 people. But for long-term investors, this is a good thing. Chainanalyze indicates that up to 30% of the Bitcoin supply is in a state of loss or untapped, and the recent analysis by Diar is also consistent with Chainanalyze’s estimate.