Bitcoin: The World’s Next Reserve Currency? Here’s What to Watch
• Bitcoin Magazine PRO sees incredibly strong fundamentals in the Bitcoin network, and is focused on its market dynamics.
• There are a growing number of unique addresses holding at least 0.01, 0.1 and 1 bitcoin, with 72.49% of the bitcoin in circulation not likely to be sold at these prices.
• Bitcoin is currently in its store-of-value phase as demand for the digital asset increases worldwide, indicating potential asymmetric returns for investors.
Growing Unique Addresses
Bitcoin adoption continues to grow with a growing number of unique addresses holding at least 0.01, 0.1 and 1 bitcoin. This data suggests that more users than ever before are buying bitcoin and holding it in self-custody. The amount held by long-term holders has increased to almost 14 million bitcoins which is calculated using a threshold of a 155-day holding period after which dormant coins become increasingly unlikely to be spent – meaning that 72.49% of the bitcoin in circulation is not likely to be sold at these prices.
Price Agnostic Accumulators
Head of Market Research Dylan LeClair said in a December 2022 interview on “Going Digital”, “You have people all over the world that are acquiring this asset and you have a huge and growing cohort of people that are price agnostic accumulators”, suggesting there is a large subset of bitcoin investors who are accumulating the digital asset no matter the price – offering optimism for bitcoin’s advancement and rate of adoption moving forward.
During monetization, currencies go through three phases: store of value, medium of exchange, and unit of account – with Bitcoin currently existing in its store-of-value phase as demand for the digital asset increases worldwide; indicating potential asymmetric returns for investors as adoption increases globally.
Recommendations from Analysts
Bitcoin Magazine PRO published an year ahead report analyzing seven notable factors that they recommend investors pay attention to in coming months; such as investor conviction into perspective by looking at the number of unique Bitcoin addresses holding at least 0.01, 0.1 or 1 BTC; long term holder supply increasing significantly; total addressable market increase; amongst others recommendations related to investments decisions regarding cryptocurrencies like Bitcoin (BTC).
The analysis shows that there is great potential for asymmetric returns as demand for Bitcoin (BTC) increases while global adoption also rises – making it an attractive investment opportunity especially when considering macroeconomic trends plus other variables analysed by experts from Bitcoin Magazine Pro who strongly believe on cryptocurrency fundamentals strength including those related to Bitcoin (BTC).