Bitcoin, being the most pricy and popular crypto, has always generated a lot of talk concerning its future. A recent tweet by a cryptoanalyst has everyone thinking of the long-term prospects for Bitcoin’s price and market stability. According to ‘Rhythm’, around 60% of mined Bitcoins haven’t been moved from their wallets for a whole year.
That percentage accounts for about 10.5 million Bitcoins, a rather baffling revelation considering that there are currently just about 17.5 million BTC mined and the total is still capped at 21 million.
BTC To Overtake Gold
The Twitter user went on to argue that bank accounts will become useless in the near future as more people turn to Bitcoin as opposed to storing fiat. If this happens, Bitcoin could finally turn into a credible and valuable asset and possibly unseat Gold from the top position as the dominant store of value.
New Investors Are Into Bitcoin
The trend of Bitcoin HODLing has caught on the new investors stepping into the crypto business. These new investors are now buying Bitcoin and hoarding it in anticipation of a higher price in the long term. As such, Bitcoin seems to gain favor as an asset that’s expected to spike in price and give good returns.
Store Of Value Vs Mass Adoption
For some time now, a lot has been said about the possibility of Bitcoin becoming a great asset to challenge Gold as a store of value. Even more, has been said in regard to the same top coin finally achieving mass adoption and being used widely in place of fiat.
These two assertions, if perceived to the extremes, seem to oppose each other because Bitcoin can’t be widely used as a means of payment if more than 60% of its supply is hoarded. However, it’s still possible for the two scenarios to attain a balance to achieve both objectives – albeit moderately.
