- Bitcoin owned by long-term users during the year 2022 has surged.
- 78% of Bitcoin`s Circulating Supply is Now in Self-Custody.
- The data demonstrates the strength of decentralization and the immutability of Bitcoin.
There has supposedly been an increase in the number of Bitcoin owned by long-term users during the year 2022. More specifically, a recent analysis found that self-custody wallets now account for 78% of the Bitcoin supply in circulation.
Seventy-five percent of Bitcoin holders now want to keep their coins under their own control rather than trusting them to a third party, up from seventy percent in August 2020.
A Reddit thread suggests that this may be due to the frequent failure of large financial institutions or controlled exchanges like FTX and Celsius.
The article claims that the illiquid supply may be used to calculate what proportion of Bitcoin’s current supply (about 19.24M) is held in private storage. That the number of BTC held in private wallets has increased from 14 million at the beginning of the year to over 15 million currently is a very encouraging trend.
Meanwhile, the total amount of BTC traded on exchanges has been falling year over year. Investors should also consider that a large portion of the money supply in circulation will never again be available.
In particular, the FTX incidents have led to a meteoric rise in this statistic, as investors have realized their coins are completely at risk while stored on exchanges. It also draws parallels to other drawdowns this year, such as the ones experienced by LUNA and 3AC. There was no apparent increase in the system’s illiquid supply at the time.
This data once again demonstrates the strength of decentralization and the immutability of Bitcoin. There is less need for external storage services now that more individuals are keeping their money on their own. This provides an additional guarantee for traders, which boosts confidence in the asset class as a whole.
Read Also :
Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.