Long-term holders have 80% of all Bitcoins- Research

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people who have had Bitcoins for a long time control 80% of all Bitcoins in circulation. [Needs a citation] (LTHs). Long-term holders, or LTHs, are people who have held on to Bitcoin for at least six months. They are often the ones who keep the Bitcoin market from falling too much.

LTHs are seen as “smart money” on the Bitcoin market, and you can often see them buying Bitcoin when the price goes down. LTHs are in charge of distributing the Bitcoin that has been collected and making the most money from it when a bull market begins.

The numbers from the chain strongly support this idea. From the chart above, it’s clear that long-term Bitcoin owners sold off their holdings every time the cryptocurrency hit a new all-time high (ATH). At the bottom of each cycle, the LTH positions are held by people who have had them for a long time. This gives Bitcoin a strong backup.

This claim is supported even more by the fact that Glassnode’s profit and loss statement looked at both long-term and short-term holder supply.

The next graph shows that people who control 80% of Bitcoin’s supply own blue LTHs. Twenty per cent of the rest of the supply is held by short-term holders (STHs). The red line shows this part of the supply. When you put the blue and red parts of the chart next to the changes in Bitcoin’s price, it’s easy to see that LTHs didn’t lose much during this market cycle, so their holdings went from 82 per cent of the supply to 80 per cent.

The two per cent drop is much smaller than what we’ve seen in recent cycles. This shows that the market has been making lower highs. People seem to be more sure that bitcoin is worth something now that its highs are getting lower and the network is getting stronger. Because LTHs saw the bear market that started in May as an opportunity to hold or keep collecting Bitcoin, not much Bitcoin moved from LTHs to STHs at that time. 

Only 4.2 million bitcoins remain till the supply cap

On January 13, 16,8 million bitcoins (BTC), or 80% of the total amount of bitcoins, were mined. Bitcoin took a big step forward with this. This means that only 4.2 million bitcoins, or 20% of the total supply of 21 million bitcoins, need to be mined before the maximum supply is reached.

Satoshi Nakamoto put a cap of 21 million Bitcoins into the code that runs Bitcoin. This was done to show how digital scarcity works in the world of cryptocurrencies (first discussed in their 2008 White Paper). Because of this limit, the more Bitcoins are mined, the more the market feels like there aren’t enough.

When there isn’t enough of something, people want more of it, which drives up the price. When there are 21 million bitcoins, getting more will become harder and harder. This could also raise the value of each coin.

At the moment, miners get 12.5 bitcoins for each successful block they mine. Nakamoto’s protocol says that this reward must be cut in half every 210,000 blocks, which is about four years. In about two years, there will be half as many miners as there are now. Depending on the hash rate, it will probably happen at the beginning of June 2020. This means that for each block they find, miners will get 6.25 Bitcoin.

Not every digital currency, including Bitcoin, can be “mined” in the same way. When some cryptocurrencies are made, all of them are made at once. All of the coins in this case are either owned or being used. Since they were all made at the same time, you can’t “mine” them or make more.

Some skeptics have said that it is theoretically possible to get more than 21 million Bitcoins. People say that a 51 per cent attack or a Sybil attack could be used to do this, but neither of these tricks has worked with BTC yet.

In August 2016, a 51 per cent attack was done on Krypton, which was an alternative currency based on Ethereum. Since then, there have not been any more attacks like this one.

As of press time, the average price of Bitcoin (BTC) was $14,200. In the last 24 hours, it had gone up 4.75 per cent. This shows that the December 22 drop in the market is still being made up for.

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