Bitcoin Floating Supply Metric Could Indicate Crypto Adoption Problems Worldwide
Companies and the crypto community are working very hard in order to spread cryptocurrency adoption around the world. However, not everything is so simple and easy to do. Perhaps, there is a problem that Bitcoin is facing and that nobody is trying to solve.
Bitcoin’s floating supply is reducing year after year. The floating supply is related to the number of Bitcoin that are being moved between traders. This is quite important because it shows the number of Bitcoin available to buy and sell.
The floating supply is very important to use it as an indicator of Bitcoin adoption since it is possible to understand what individuals that own Bitcoin are doing with their funds.
The Twitter user Antoine Le Calvez has uploaded a chart in which it is possible to see that there is an important amount of BTC that has not moved in years.
A lot of the Bitcoin supply hasn't moved for years. pic.twitter.com/VhlhWzCBgd
— Antoine Le Calvez (@khannib) September 23, 2018
As the graphic shows, it is possible to see the number of Bitcoins moved each of the years from 2010 until 2018. This shows that there is an important amount of people that are holding the asset and are not trading it. This could ultimately influence Bitcoin’s price as demand for the cryptocurrency increases.
The charts for Doge and Litecoin, other important virtual currencies in the market show similar trends as Bitcoin.
It can be seen that between 2010 and 2014, users were more interested in using Bitcoin than now. However, after 2014, more speculative investors entered the market and decided to hold their assets and wait for a price increase in the future.
If virtual currencies are not used and are stored as if they were speculative assets, it will be difficult to expand their benefits all over the world. Nonetheless, if there is an increased demand in the market, less circulating supply would also mean higher prices for these virtual assets.