Only 1.3% of BTC transactions in 2019 so far come from merchants and payments which means that no one is using bitcoin to buy things. Like the reports, we have in our latest cryptocurrency news suggest, 98.7% of the volume is all on the exchanges.
The research firm Chainalysis made this discovery a few days ago showing that the bitcoin economy is still mostly speculation. The figures are based on the company’s research team for the previous four months of 2019. The senior economist at Chainalysis Kim Grauer told Bloomberg:
“Bitcoin economic activity continues to be dominated by exchange trading. This suggests Bitcoin’s top use case remains speculative, and the mainstream use of Bitcoin for everyday purchases is not yet a reality.”
According to Olga Kharif who is a tech column writer at Bloomberg, the bitcoin price rally hides the ‘’uncomfortable reality’’ by saying:
“That’s become the main dilemma with cryptocurrency. Bitcoin needs the hype to attract mass appeal to be considered a viable electronic alternative to money but it has developed a culture of ‘hodlers’ who advocate accumulation rather than spending.”
Currently, there are plenty of HODLERS who advocate accumulation and this could be a reason for the low percentage in bitcoin payments. Some analysts even described it as the ‘’invisible hand’’ of Adam Smith who guides the decisions in the economy based on knowledge and self-interest.
The banks in the US monetary system are built to only accept dollars and lose about 3 percent of their value every year since the Federal Reserve expands the money supply steadily. The FED issues the dollars to Federal Reserve Banks and lends it at a profit. When the money starts circulating, they bring the value of the dollar down in your bank account.
On the contrary, no central authority issues Bitcoin and the asset has a fixed supply that will max out once after 21 million BTC are issued. People will likely spend them differently than dollars but for now, it still remains that only 1.3% of BTC transactions are payments. It is expected that in the near future, bitcoin will become a global merchant solution.
As noted in the coming altcoin news, people are still skeptic of the major asset mainly during a bull run. Everyone expects for it to crash meaning that people still don’t have faith in it.
Growth Of BTC Millionaires Now Matches The Early Years: Report
“The rate of growth of 1000BTC addresses now matches the early growth in Bitcoin's network.”
Source: charts.woobull.comWoo was expanding on his original data from blockchain analysis resource Glassnode. According to him, the fresh desire for major Bitcoin balances at vastly higher prices than five years ago tells that wealthier individuals coming into the space.If the generating addresses with over 1,000 BTC at the time were doing so out of technical curiosity, the incentives in 2019 are purely financial. Willy Woo talked about this in his growth of BTC millionaires report and summarized:
“IMO we're likely in a new renaissance of Bitcoin, this one is powered by capital influx of high net worth investors, while the early one was from the tech savvy who were bootstrapping the network. Super Bullish.”Meanwhile, the crypto news show that the trajectory of balances topping 1,000 BTC picked up at the start of 2019 after a period of flat growth which started in late 2013 prior to the implosion of the major exchange Mt. Gox.As many news sites reported last month, the number of addresses containing more than $100,000 has also hit a new all-time high. At press time, around 3,070 addresses hold more than 1,000 BTC each, representing around 0.01% of the total, according to the BitInfoCharts' Bitcoin Rich List.What's also important is that many of the richest addresses - specifically the top four - belong to exchanges such as Binance which are holding Bitcoins belonging to millions of users.Besides the growth of BTC millionaires, the situation on the market remains the same - and the total market cap is nearing $225 billion.
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Brian Kelly Believes The Market “Needs A Bitcoin ETF” RIght Now
“You have companies like Fidelity and TD Ameritrade starting to push into this space. So ultimately you’re going to be able to buy Bitcoin in a regular brokerage account, or it’s going to look like a regular brokerage account. So I’m less concerned that you need a bitcoin ETF at this point in time.”Brian Kelly also pointed out to the fact that the United States Commodity Futures Trading Commission (CFTC) decided to define Ethereum as a commodity and how this made a significant impact on the space.
“The CFTC saying that Ethereum is a commodity is huge for the space. It gives us regulatory clarity. [...] That opens the door for institutions to come in. [...] Everybody is concerned, what if they ban it? [...] The CFTC said ‘we’re not banning it yet, we’re gonna regulate it,’ and now investors can say ‘Put them in my commodity bucket.’”In May this year, Brian Kelly also said that the upcoming supply cut - which was brought by the next halving of the block reward - is what Bitcoin needs to rise further in the coming months. As we reported on October 9, the US SEC rejected Bitwise Asset Management and its proposal to list a Bitcoin ETF.Meanwhile, the Bitcoin news updates show that BTC is still vulnerable in the $8,000 region and trades at $8,350 today with a downward momentum. Meanwhile, there are altcoins surging such as Binance Coin (BNB) and Bitcoin SV (BSV). The market is not in a good position and things may change soon, but there must be a coin that will trigger a new bullish run.
Bitcoin Is No Longer Seen As The Driving Force Of The Current Market
“Now that Bitcoin is a big kid, anything can make it move, just like anything can make gold or a G-10 currency move,” said Selbert. “Bitcoin is part of the financial landscape in a very intertwined and mature way.”As it stands, Bitcoin is trading at $8,346 and the latest crypto news bring a mix of reds and greens on the marketplace. The 24 hour trading volume is stable at $46 billion and the dominance of Bitcoin has fallen to 66.8% - another sign that Bitcoin is no longer dominant in every single way.Among the tokens which are rising today we have Bitcoin SV (BSV) which managed to grow by 4.43% reaching $89.21 - and Binance Coin (BNB) which surged by 2.53% to a price of $17.46. The biggest loser, on the other hand, remains Chainlink (LINK) with its price of $2.54 following a 5.36% decline.
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