Delphi Blockchain Analysis Shows Four Out Of Five Bitcoin Wallet Addresses Hodl Under $100 USD


80% of Bitcoin Wallets Contain Less Than $100

There are 23 million bitcoin wallets in the world today. The vast majority of those bitcoin wallets, however, are virtually empty, according to a new report.

An analysis released by digital asset research firm Delphi uncovered 22.9 million bitcoin addresses that were holding at least some amount of bitcoin (an amount greater than zero). Of those 22.9 million addresses, however, most contain less than $100.

The information was published in a report called, “The State of Bitcoin”. The 59-page report explores the long-term value potential of bitcoin, including an analysis of where bitcoin could be going in the future.

Delphi cautioned that many of the 22.9 million bitcoin addresses will belong to a single user. One user might split his bitcoin into 10 addresses or 100 addresses, for example. The fact that there are 22.9 million accounts holding bitcoin does not mean that there are 22.9 million bitcoin hodlers out there.

In the chart published by Delphi, we can see that 50% of bitcoin addresses have less than 0.001 BTC (around $3.70). Additionally, only 20% of addresses store more than $100 USD. In other words, 80% of bitcoin wallets contain less than $100.

Meanwhile, fewer than 700,000 bitcoin addresses own more than 1 BTC (worth approximately $3,400). Of those accounts, 588 addresses are richer than $10 million.

Delphi Digital is a New York-based research and consulting company focused on exploring the digital asset space.

The report identifies a number of other crucial points about the future of bitcoin. It explores the risks to bitcoin, for example, and the problems that could affect bitcoin moving forward. Some of the risks include PoW energy consumption, competition, failed infrastructure development, and continued volatility or hard forks. All of these things could reduce the value of bitcoin – or even destroy bitcoin – moving forward.

The report also highlights the power of bitcoin in emerging markets. Venezuela and Argentina are both mentioned. The two South American countries are home to some of the highest bitcoin-using rates per capita. Delphi’s analysis finds that people in developed economies may not have great motivation to use bitcoin at this time, but those in emerging markets have motivation to use bitcoin today. In Argentina and Venezuela, for example, fiat currency prices can be volatile, and bitcoin is seen as an alternative type of currency insulated from local economic troubles.

Delphi also analyzes where the price of bitcoin could go:

“The upside potential for bitcoin is immense assuming it captures even a modest portion of the total assets held in offshore bank accounts, the investible gold market, and central bank gold reserves,” explains the report.

The report explains that if bitcoin is able to capture 10% of this market, then the price of bitcoin has a 75% chance of being $54,816 within 10 years. If bitcoin can capture 75% of the market, then it will be worth as much as $411,117.

“While we remain very constructive on the long-term outlook for bitcoin, there are many hurdles it most overcome before it can become an alternative means of storing value,” explains Delphi. “Price volatility, secure custody solutions, and global regulatory uncertainty are just a few of the challenges currently suppressing demand for bitcoin.”

Nevertheless, Delphi believes that bitcoin has a good chance of surpassing these problems:

“Barring any major disruptions to its network, however, over the long run we foresee bitcoin serving as a staple allocation in traditional investment portfolios, central bank reserves, and as a suitable alternative for a portion of assets held in offshore accounts.”

If bitcoin can capture even a small slice of this market, then it could surge in value over the next 10 years.

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