Friday, December 3

Bitcoin Dad analyzed some movements in the Bitcoin Blockchain during the BITconf 2021

During the third day of conferences At Bitconf 2021, “Daddy Bitcoin” was present giving a talk that analyzed some movements of the Bitcoin Blockchain. In this sense, he began his intervention by explaining that Bitcoin contains an accounting system based on UXTO, which allows tracking between quantity, time and purchase price. The UXTOs are those fractions of Bitcoin or the outputs of Bitcoin that have not been spent.

Continuing, with his participation he went on to explain the monetary policy of Bitcoin. It showed through data that Bitcoin will be issued from approximately 2009 to 2140. And, the curious thing about their data is that every 210,000 blocks a certain amount of Bitcoin is being issued.

For example, in the first 210,000 blocks approximately in the year 2009 to 2012, half of the Bitcoins were generated. That is, 10,500,000 Bitcoin were generated in the first 210,000 BTC blocks. In the next four years, it was already half because there happened an important milestone such as the halving. And, by 2016, 75% of Bitcoin was already in circulation.

Bitcoin Monetary Policy Explained by Bitcoin Dad at Bitconf 2021

In what epoch of Bitcoin’s monetary policy are we?

Daddy Bitcoin, expressed that, currently in the monetary policy of Bitcoin we are in the era of 2020-2024. At this time, 1,312,520 Bitcoin will be generated. This explanation was accompanied by a graph where he continued reporting the performance of the price of Bitcoin from 2010 to the present. Highlighting that, after the different halving of Bitcoin, the price of the main cryptocurrency tends to increase.

So, through his presentation, he showed what happens with Bitcoin, after a year or two after the halving and said that this is going to lose influence or affect the price of Bitcoin. Since every time, there are less Bitcoin to be issued.

90% of Bitcoins are already in circulation

Now, he also added that 90% of Bitcoins are in circulation. He highlighted that, specifically, a total 18,877,085 Bitcoin are in circulation at the height of block 710,348. And he anticipated that 99% of Bitcoins will be in circulation in December 2035, at the same time that he said that around 150 million people have Bitcoin at this time.

Another data that he explained during BITconf 2021 is that 13% of Bitcoins are condensed in exchanges, which would correspond to 2,438,494 BTC, whose distribution of exchanges was led, according to data provided at the conference by Coinbase. This condensation was on the rise until the COVID-19 pandemic. Since then, for some reason or another, the amount of BTC started to decrease. That is, the rest of the Bitcoins are in the chain.

hodl waves

In another graph he explained Hodl waves. He said that depending on the amount of Bitcoin of the users, these could be located in some color band like the one seen below. Understanding that the larger the strip, the more concentration of Bitcoin there is.

Continuing with his explanation as the slides changed, he highlighted that 30% of Bitcoins are in the hands of people who have bought and kept their BTC for between six months to a week, that is, “in the hands of the newest” he said. . While, the other 70% have it the hodlers, those who have had Bitcoin accumulated for more than six months.

Now what do the hodlers say? 70% of Bitcoins or maybe a little more are in your hands. Generally these people, what they do and increase their accumulation when Bitcoin is correcting or accumulating. Therefore, he suggested paying attention to this, because many newbies tend to buy Bitcoin when the price is going up. And considering these two perspectives, they are actions that can help determine some particular action related to the market.

In addition, he stressed that something interesting is currently happening: “The accumulation of holders is increasing, which means that they estimate that current prices are cheap to buy,” he said. He said goodbye suggesting that the best investment strategy with Bitcoin is to do Hodl.

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