Satoshi Nakamoto, the enigmatic Bitcoin inventor, has set a limit of 21 million Bitcoin tokens that may be mined. According to CoinMarketCap, 18.9 million Bitcoins have been minted and are in circulation.
“We can observe that in the closing months of 2021, even when prices dropped, there was an influx of cryptocurrencies from liquid to illiquid wallets,” Glassnode stated in its research.
The rest of the 24% of the Bitcoin supply is now being liquidated by wallets that are actively spending or exchanging their holdings. According to CoinMarketCap, 40,049,185 crypto wallets own Bitcoin. 963,625 of these are active wallets.
According to the Glassnode analysis, Bitcoin buyers are very much inclined in retaining and amassing crypto tokens than in using them. Bitcoin investors are definitely anticipating significant capital appreciation in the coming days.
“There seems to be a significant increase in the movement of crypto coins from liquid to illiquid wallets. Coins transferred to more illiquid wallets at a frequency of 50,000 to 100,000 Bitcoins every month through December, implying an increased chance of wider amassing,” the study concluded. Since its inception in 2009, Bitcoin has risen to become the world’s most valuable cryptocurrency in the previous thirteen years.
Every Bitcoin unit was valued at $0.0008 in 2009, a far cry from its present levels. It is also interesting to note that Satoshi Nakamoto, the alias of Bitcoin’s inventor, has 1,125,150 Bitcoin coins in an inactive wallet, valued around $66 billion.
Despite the fact that 90% of Bitcoin’s pre-determined 21 million tokens have been minted, it will require 120 years for the final 10% Bitcoin tokens to enter the circulation, according to a December study. The “Bitcoin halving” procedure has surfaced as the cause for the lengthy duration necessary to introduce all Bitcoins to the market.
The word applies to a pre-programmed occurrence that happens per 210,000 blocks, or around four years from now, and reduces Bitcoin’s rate of inflation and the pace at which fresh bitcoins enter liquidity pool by 50%. Bitcoin’s current market capitalization is $2,231,353,914,105.