For a long time, Bitcoin’s fixed issuance and scarcity value have been one of its most representative attributes, and this attribute has also been one of the main reasons why cryptocurrencies are widely regarded as “safe havens”.
New data suggests that Bitcoin may also be scarcer than previously thought, because the current 7.78% of the supply of Bitcoin has not been transferred for ten years.
Some bitcoin may be the BTC of its founder Satoshi Nakamoto and some other early adopters, but it is likely that most of it will be attributed to the lost bitcoin.
Either way, the increased scarcity provided for Bitcoin enhances its macro prospects.
Bitcoin’s 21 million hard cap supply makes it one of the world’s constant fixed assets.
Despite the expanding supply of gold and other precious metal commodities, there will never be more than 21 million bitcoins in existence.
It now appears that Bitcoin may even be more scarce than previously thought, because the data shows that less than 8% of the total circulation has been dormant in the past decade.
The vast majority of these bitcoins are likely to be lost, which means that they are permanently locked in the wallet where users lose their keys.
Unfolded talked about this in a recent tweet and provided data from the analysis platform Glassnode.
“7.78% of the current supply of bitcoin (about US $ 13 billion) has not moved in ten years.”
As everyone knows, the scarcity of Bitcoin is an important part of its long-term prospects.
Because of this, the theory also plays an indispensable role in the cryptocurrency-like stock flow model promoted by Bitcoin commentator PlanB.
The model weighs the existing supply of assets (in this case, Bitcoin) and their annual production. Before Bitcoin’s recent mining rewards were halved, the model predicted that Bitcoin’s transaction price would be about $ 100,000 by the end of the year.
However, it is also because the halving has led to an updated version of the model, called the S2F cross-asset model (S2FX), which predicts that the transaction price of Bitcoin will be close to $ 300,000 in the next few years.
Combined with the model diagram provided by PlanB, he said in a tweet, “When the S2F value reaches 56, the corresponding bitcoin price will be $ 288,000.”
The number of bitcoins that have been dormant for decades has shown that the scarcity of this cryptocurrency is increasing, it seems to further consolidate this economic model, and shows that the cryptocurrency may have a huge upside in the next few years.
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