The Sleeping Bitcions Worth $13 Billon: How Can This Affect The Current Price Of BTC?
The Bitcoin software concept implies a clearly defined amount of this cryptocurrency, which is limited by the number of 21 million tokens. This was established at the dawn of the launch of the digital asset by her “father” Satoshi Nakamoto. A fixed amount of Bitcoin and targeted containment of emissions from the very beginning to popularize as a key asset advantage and the possibility of its use as a hedge of refuge.
“Sleeping” $13 billion Bitcoin
According to the latest data, the amount of Bitcoin may be even less than indicated in generally accepted statistics. Analysts concluded that 7.78% of the total BTC had not been active for 10 years. This belief also confirms the study of the Glassnode platform.
A cryptanalyst with an Unfolded account tweeted this:
“About 7.78% of the total bitcoin mined has not been active for 10 years. At the current rate, this equates to about $13 billion. ”
These data lead to the formation of several key conclusions. Firstly, part of this inactive amount of BTC may belong directly to Satoshi Nakamoto and other “pioneers” of the crypto industry, which may have been involved in the development of Bitcoin.
Secondly, likely, part of the BTC is now frozen since the owners have lost the keys to their wallets and therefore do not have access to them. The Bitcoin network ecosystem does not suggest other ways to restore access to your account. Thus, these tokens can be considered lost coins, since they go out of use.
How can a Bitcoin deficit affect its price?
A limited amount of Bitcoin is a positive factor in the macroeconomic area and directly affects the price of Bitcoin. In this case, the model of increasing demand works fine while reducing the quantity of supply. Bitcoin deficit can become a powerful driver for its price increase and then the forecasts of some crypto enthusiasts will not look so transcendental.
In particular, this economic model is supported by a cryptanalyst under the pseudonym PlanB. According to his theory, after the Bitcoin halving held in May, its price should approach the $100,000 mark by the end of 2020.
In connection with the new deficit data, Bitcoin also has the right to live a concept called S2F Cross Asset Model (S2FX). The ideological inspirers of this concept are sure that in just a few years the price of Bitcoin will rise to $300,000.