Is Crypto growing? Is the bull run coming? When moon, when lambo?
Are these questions familiar? Then, you must be wondering who truly holds the answers.
In the article linked below, you'll find an interesting approach to knowing the real answer about the trending of crypto.
Historically, trending the growth of crypto has been based on attempts to analyze movement to and from crypto wallets. In particular, tracking the number of wallets utilizing Bitcoin transactions was a gauge to point to whether adoption of crypt is scaling or not. But, there are numerous issues with this method.
There are issues with the accuracy of the conclusions that can be drawn from this method. To the extreme, an online exchange can represent a single wallet that represents tens of thousands of individuals, and the value coming and going is almost impossible to quantify on an individual level. To the other extreme, an individual may use numerous addresses.
Even though we are able to gather data about how much volume there is, liquidity of exchanges, capitalization, it is not easy to qualify the trend of adoption; are more people getting intro crypto? If so, how fast is the rate increasing and how much are they buying? An online intelligence platform, Glassnode, has developed a system that helps this challenge to a conclusion.
Glassnode has developed an approach that maps multiple addresses to singular entities, thus solving some of the discrepancies mentioned above.
While they do not resolve the problem of exchange addresses, which hold Bitcoin for more than one person, their calculations paint a clear picture: Bitcoin usage is healthy and growing and always has been.
Using a unique approach, the underlying data suggests strong trends in the right direction for Bitcoin adoption.
Measuring Adoption by Entity
By measuring new entities, former entities, and sending and receiving entities, the on-chain data and intelligence platform found that “as of January 2020 the number of entities holding Bitcoin is ~23.1 million.”
Importantly, those figures are almost 20% less than the number of addresses.
Glassnode found that the volatility observed when measuring addresses is not present when counting entities. That finding alone casts serious doubt on the viability of merely assessing Bitcoin usage by the number of addresses alone.
The trends can be interpreted to show growth in all of the most relevant determining factors, for almost 99.5% of the entire trending timeline of crypto history.
These included Coinbase (983,800 BTC), Huobi (369,100 BTC), Binance (240,700 BTC), Bitfinex (214,600 BTC), Bitstamp (165,400 BTC), Kraken (132,100 BTC), and Bittrex (118,100 BTC). There are another 68 entities holding over 10,000 Bitcoin.
With 2020 introducing the most significant "halving" of Bitcoin, this trend speaks to a good future ahead.
The original source can be found here:
