New Crypto Research Says Over 1 out of 3 Bitcoin (BTC) is Lost in Circulation
Research Firms Say 36% Of BTC In Circulation Is Lost
Two recognized research firms, Chainalysis and Diar, conducted an investigation in which they found that 36% of Bitcoin are lost. This shows that the famous virtual currency is even more scarce than previously supposed. According to CoinMarketCap, there are over 17.2 million BTC available on the market. However, the research firms believe that 6.2 million BTC are lost.
As per the report, 22% of the current circulating supply is held by speculators that are waiting for its price to grow in the future. Investors, at the same time, hold a 30% stake in the current circulating supply.
Bitcoin was created to have a limited supply of 21 million BTC. However, the figure is much smaller. Miners still need to mine 3.700 million BTC and 6.2 million BTC are already lost, thus, the real circulating supply is less than expected.
Back in July, Charlie Lee, Litecoin’s creator, said that users and investors should buy 1 Bitcoin before purchasing other virtual currencies on the market. He even said that they should buy Bitcoin before than buying Litecoin (LTC), his own creation.
There will be at most 21 million bitcoins in existence. There isn't even enough BTC to go around for EVERY millionaire to own one. So before you buy any other coin (LTC included), try to own at least 1 BTC first. 🥅
Once you have 1 BTC, buy all the shitcoins you want! 😂 pic.twitter.com/bc3xKKGB0m
— Charlie Lee [LTC⚡] (@SatoshiLite) July 17, 2018
This is very promising for Bitcoin. At the moment the market is on a bear trend. But several experts believe that the bottom has already been reached and that a bull market is starting to be formed. In the near future, there will be several financial institutions that would be able to purchase important amounts of Bitcoins.
For example, in November/December, the Intercontinental Exchange could launch the Bakkt platform, specifically designed for financial institutions. Coinbase and other financial institutions such as Goldman Sachs are also preparing the necessary infrastructure for wealthy investors to have access to the market.
If this happens, there will be an incredible buying pressure on Bitcoin and its price could reach new highs. With more buyers and a lower supply, Bitcoin is a very attractive investment for the future.
Michael Novogratz, an important cryptocurrency investor and bitcoin supporter, said that Bitcoin has already bottomed. At the moment of writing, Bitcoin is being traded close to $6,650 dollars.