Only 3.5 million bitcoin or 19% of total circulating supply is actively traded throughout the world.
Well, they’re held long-term by investors, according to a new report by crypto analytics company Chainalysis.
Per the report, nearly 18.6 million bitcoin has been mined as of June 2020.
Of this, around 60% Bitcoin is held by entities – either people or businesses – that have never sold more than 25% of the bitcoin they’ve ever received.
Another 20% of the existing bitcoin supply has not moved from its current set of addresses in five years or longer.
The remainder – 3.5 million of all mined Bitcoin – is used for trading, primarily between exchanges.
If you’re all confused about the numbers, let me put it in simpler terms.
Majority of bitcoin is held by those who treat it as digital gold: an asset to be held for the long term and they have been profiting big time.
Chainalysis found that throughout 2020, a total of 340,000 people are actively trading Bitcoin every week.
There are two types of traders, retail and professional. Retail traders are those who deposit less than $10,000 worth of bitcoin on exchanges at a time.
However, they account for 96% of all transactions per week. Professional traders make up only 4% of active traders but they control market liquidity. They account for 85% of all the US dollar value of bitcoin sent to exchanges.
What does it mean for you?
There’s a lot of room for you and you have a lot of time too.
There are only 4% active traders and they control the crypto market. Only 4% are hoarding the gains.
You can get in the game. Imagine if you get in now, in several years, when central banks start using cryptocurrency, blockchain starts dominating the market, your gains will be astronomical.
Get in there and take a piece of that pie.