A research by Diar revealed that the king of cryptocurrencies hasn’t lost its charm as a long-term investment option despite facing a harsh bear market during 2018. According to a Diar research, 25% of the total Bitcoin supply is controlled by the long-term investors. The research found that more than 55% of Bitcoins are in wallets that have more than 200 coins which could easily be worth more than a million dollars when the Bitcoin prices are over the $5000 handle.
“Over 87% of Bitcoins are stored in wallets that are above 10 Bitcoins ($60K+) – the total value just shy of $100Bn of the total market capitalization. These coins sit in only 0.7% of all Bitcoin addresses. Accounting for wallets with over 100 coins ($640K+), this number drops to under 0.1% of all addresses, but represent 62% of all outstanding Bitcoins,” said the research.
The largest Bitcoin wallets are in the possession of major cryptocurrency exchanges, the research added. The research has identified that 3.8% of the total bitcoin supply is concentrated in the top five wallets that are controlled by these exchanges. The coins in these five wallets are estimated at approximately $4.2 billion.
The most significant finding made by the research is the number of dormant bitcoins that are present in these wallets. According to the finding, 42% of the bitcoins on these wallets has been sitting idle without any record of outgoing transactions. Notably, these wallets don’t have a transaction history even during the Bitcoin hike of December 2017. Also, 27% of these wallets have added more coins since the price peak indicating hodling of Bitcoins.
Another research published in June this year found that five million Bitcoins were concentrated in the hands of 1,000 largest long-term investors and the 600 largest new speculators. This represents one by third of the total supply of the coin. The figures presented by these studies indicate that long-term investors still eye bitcoin as the no.1 long-term investment option.
See also: Bitmain CEO slams Craig Wright over proposed Bitcoin Cash hard fork; tells him to “f*** off”
Join our Telegram group