Intermediaries Now Hold Over 15% of All Bitcoin Holdings, Other 80%+ is Self-Stored, Lost or Hacked

Even though the limited supply of bitcoins has an impact on its value, so does the deflationary attributed. Right now, control by intermediaries is about 16% of the BTC supply and we’re only ten years into the life of crypto. It is expected that the control percentage will increase over time due to banks, businesses, and others who are interested in gaining control of the crypto market.

The big question is what the impact the bitcoin supply will have on its price and whether it is in contrast to bitcoin’s purpose.

Generally, supply and demand control everything’s value. The higher the demand for something, the higher its price will be. Inversely, the lower the demand, the lower in price. Essentially, this is how those on eBay are able to increase the price of products that just launched – with so little supply, and high demand, they can charge a premium for the product. The same seems to apply to bitcoin.

The current bear market has caused wane in demand, and thus, its price decreases. This is also the case as supply increases due to mining. The next question is what occurs when intermediaries, like banks, start to collect the supply of BTC and what will it do to bitcoin’s price in the future?

Meltem Dimiorors of CoinShares, recently pointed out on Twitter that about 16% of the BTC supply is controlled by intermediaries, like Abra and Binance. Like other exchanges, like Bakkt, Digital Assets, and Fidelity launch, they’ll do the same and the percentage controlled with an increase.

There seems to be a benefit to this though, which is that as supply and demand shift, so will its price. As these institutions collect the supply of BTC and demand increases, so will the price. The hope is that these developments are near.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.

1 comment

by Newest
by Best by Newest by Oldest
Bitcoin Exchange Guide