With each day there is renewed optimism that Bitcoin will reach new highs. More importantly, there is optimism that it is growing in adoption, usage, and price. Over the last few years, Bitcoin wallets have been gradually increasing. And for some time, the sum held in these wallets was unsubstantial with many holders buying little to test the technology. Now, however, this is changing sporadically.
In particular, 2019 has seen the number of wallets holding more than 1,000 BTC grown exponentially. The growth in BTC wallets has been interpreted as a hugely bullish sign that shows that Bitcoin is headed up. It is a sign that big players are optimistic over the future of Bitcoin and are ready to hold huge sums in the long run.
According to analyst Willy Woo, the growth rate posted by BTC wallets is similar to that posted earlier by Bitcoin’s network. If the wallets continue growing as fast as the network, this would see the numbers hit unprecedented numbers and adoption nearly hit its peak as we approach the end of the 3 million BTCs remaining to be mined. It also means that the more the few accumulate, the more demand there will be. Pushing prices higher and higher.
Why The Growth In High New Worth BTC Wallets?
The growth in BTC wallets has been bosted by the string of bad results posted by altcoins. Many of the investors who would invest in altcoins have been abandoning them for the more stable Bitcoin. In 2019 Bitcoin dominance has reached new highs, climbing as high as over 70%. This has also been coupled with the 2020 Bitcoin halving. Next year, as programmed, Bitcoin will slash its reward to miners by half.
This will take the reward from 12.5 to 6.25 BTC per block mined. The simple business principle dictates that little supply means high demand. Many investors are looking to capitalize on the halving and will be buying in bulk right now, ready to sell during the halving. Historically, the halving sees Bitcoin soar. In 2019, Litecoin, a close relative of Bitcoin, soared by more than 300% leading up to its halving.
Whatever the case, it is clear that big players are every day joining the revolution and the network is ever-growing. The only issue remains that there is potential for manipulation if there is only a small pool of people who own the most Bitcoin, the so-called Whales. They could easily manipulate prices as has previously been seen when one moves millions of Bitcoin. What are your thoughts?
Thanks for reading! Please subscribe to my profile if you want to get more news and let us catch up on the next piece.