Value of holding bitcoin surpassing trading value – Axios

Facebook
Google+
Twitter
LinkedIn

a graph showing average amount of days bitcoin is held
Data: Coin Metrics; Chart: Axios Visuals

Now more than ever, bitcoin as “digital gold” is the prevailing narrative fueling big-name adoption, writes Coindesk. Bitcoin is something to be bought and stored, not something to be spent or used. 

Why it matters: Bitcoin as a store of value is trouncing bitcoin as a medium of exchange. While the price of bitcoin is near its all-time highs, usage of bitcoin for anything other than investing has slowed.

By the numbers: Roughly 60% of all bitcoins have not moved in at least a year. The average time bitcoin is being held in individual wallets recently surpassed 1,000 days for the first time.

Between the lines: That said, bitcoin does function as a currency in two key places: darknet e-commerce and countries with economic instability. 

  • Darknet volumes are still seeing a steady upward trend. Such marketplaces drew roughly $1.5 billion in revenue in 2020, up from just under $500 million in 2015. Overall, about 1% of crypto transactions last year were for illicit purposes.
  • Kenya, Venezuela, Nigeria and Colombia lead the pack in peer-to-peer exchange volume, which is the sector’s best proxy for grassroots activity. Even among the leaders, however, volumes remain tiny. Source…

Subscribe to our Newsletter

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Share on facebook
Share on google
Share on twitter
Share on linkedin