How Bitcoin Distribution Is a Bullish Sign For Greater Adoption

[daayrus]

There are a number of differing metrics analysts use to determine the health of the Bitcoin ecosystem. Hash rate and transactions are two of the most popular but distribution in terms of the number of addresses can also be used to determine adoption rates.

Bitcoin Addresses Increasing
Over the past two years the number of BTC addresses has surged indicating that the asset is undergoing greater adoption. The largest gain is the number of addresses with less than a million satoshis which also suggests a more even distribution that is not just a few whales or large exchanges.

According to director of research at The Block, Larry Cermak, this is a very bullish metric.

“This is probably the most bullish chart on Bitcoin I’ve seen to date. Even though a single person can own multiple addresses, this to me clearly indicates user growth and an improving distribution.”

This is probably the most bullish chart on Bitcoin I’ve seen to date. Even though a single person can own multiple addresses, this to me clearly indicates user growth and an improving distribution. Source @nic__carter pic.twitter.com/2vCDoiqrlL

— Larry Cermak (@lawmaster) September 8, 2019

The numbers of addresses holding very large amounts of BTC have not increased anywhere near the rate of the smaller ones. A major jump has occurred since 2017 in addresses holding just 100k satoshis despite the massive bear market of 2018. This could be a sign of mass accumulation of smaller amounts of Bitcoin.

In a similar observation, Coinbase CEO Brian Armstrong noted the increase in addresses holding 10BTC and that it too has hit a new high.

“Great charts from Coinmetrics, showing crypto industry growth. For instance, the number of addresses holding at least 10 Bitcoins recently hit an all-time high.”

Great charts from Coinmetrics, showing crypto industry growth. For instance, the number of addresses holding at least 10 Bitcoins recently hit an all-time high. https:/[Suspicious link removed]/t5HspfauJM pic.twitter.com/Yo1UNu6mZR

— Brian Armstrong (@brian_armstrong) September 6, 2019

There were a number of arguments for not using this metric such as the fact that users can have multiple addresses or the influence that large exchanges such as Binance can have. But generally it has been viewed as a positive indicator of Bitcoin growth and adoption.

Still Top Heavy?
It has often been suggested that a small number of whales can control a disproportionate amount of the supply of BTC, and thus influence its price. However, stats on Bitinfocharts.com suggest that the number of addresses holding just a dollars’ worth is also on the up.

The site suggests that almost half of all BTC addresses hold less than 100k satoshis. A quarter of addresses hold between 100k and a million satoshis and 17% contain between a million and ten million sats. Only ten percent or so of BTC addresses hold more than 1 Bitcoin according to the website, however it should be noted that there are a lot of coins being held in that ten percent!

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[teosanru]

Apart from wider adoption creation of more addresses also shows that much more exchanges, casinos & wallets have been opened which require a hell lot of addresses for daily usage. Moreover I have also seen people never staying on the same address until it's a cold storage address. So may be it's just a hell lot of people shifting to their new addresses because no one has a count of dormant addresses which have almost negligible satoshis in them with almost no transactions from last many years. Moreover coming to even distribution. I barely think there is an even distribution of bitcoin. Whales are still present on a very high scale. The whales are getting richer by using their dirty pumps and dumps. I don't think these thesis show any signs of even distributions.

[franky1]

though the number of UTXO's can indicate something. it also has to be taken into context,
other things like the richlist of the largest hoards can prove indicative aswell.. the more coins held in large addresses indicates lots of coins in exchanges which if at a extreme level is usaully a sign people are ready to sell, indicating a bearish trend
which means when less funds are hoarded by exchanges and more is hoarded individually then there is less available in exchanges which would indicate a stronger bull signal
and ofcourse there is the mining costs. if there is not much profit in mining then the speculation buffer is thin which means good value to buy. again adding to a bull signal. where as if the mining costs were low but price was high then people are happy to sell, indicating a bear signal.

[YuginKadoya]

Bitcoin Addresses Increasing
Over the past two years the number of BTC addresses has surged indicating that the asset is undergoing greater adoption. The largest gain is the number of addresses with less than a million satoshis which also suggests a more even distribution that is not just a few whales or large exchanges.

Yes, the number of Bitcoin Address is really surging to a way that it is still increasing as we speak, but let's not forget that 1 person can own multiple accounts of bitcoin address to the fact that most of them don't actually have an amount of Bitcoin in it due to the purpose they only know, But sometimes multiple Address like these does have a scheme of transaction over to one address to another for a very purpose they only know, And I have heard that more than 732,000 addresses owning at least 1 BTC think of that as a volume of adoption.

I have voted for $13,000 USD maybe this is a sign that we are ready for another bullish trend and a sign of greater adoption.

[CryptoBry]

Well, as they are saying, the more the merrier and in the case of Bitcoin the more users there are the better it would be as far as adoption is concerned. One thing for sure is the significant growth in Bitcoin addresses taking into consideration its limitations can mean a lot and can be used as a signal for something that can be happening soon. This can be real growth that we are all dreaming about. How this can be influencing and translating into numbers in the price of Bitcoin is something worth looking forward to.

[funchiestz]

I think it must be very hard to talk about it. The price of Bitcoin at the beginning of this year was $ 3,000. But in just one month, the price of Bitcoin suddenly rose to $ 14,000. It was like a bull run! But now we see that this is not true. The bull still hasn't arrived. I'm not sure if the bull started even when it rose from $ 8,000 to $ 17,000.

[Alexandr Kirichenko]

I think it must be very hard to talk about it. The price of Bitcoin at the beginning of this year was $ 3,000. But in just one month, the price of Bitcoin suddenly rose to $ 14,000. It was like a bull run! But now we see that this is not true. The bull still hasn't arrived. I'm not sure if the bull started even when it rose from $ 8,000 to $ 17,000.

I wonder why you don't think it's a bullish trend? The price rose well, all traders with whom I communicate, say that Bitcoin will only grow. These little kickbacks, it's normal. Or did you want it to grow to $ 100,000 in a few months?

[dothebeats]

The more coins distributed from large entities to individuals, the better. This usually signifies that people are believing on the capabilities of bitcoin moreso the ability of it to appreciate in value over time which is the primary reason why people are buying in the first place. If more coins are concentrated within the constraints of exchange addresses and already huge addresses, this does mean that not many coins are going round and about and is usually indicative of a present selling pressure, just like what @franky1 stated in his post. Although it is quite improbable in the time being to see more and more coins distributed to tons of different people, just a few steps everyday could be of great help in the near future--not just price-wise but also adoption-wise.

[funchiestz]

I think it must be very hard to talk about it. The price of Bitcoin at the beginning of this year was $ 3,000. But in just one month, the price of Bitcoin suddenly rose to $ 14,000. It was like a bull run! But now we see that this is not true. The bull still hasn't arrived. I'm not sure if the bull started even when it rose from $ 8,000 to $ 17,000.

I wonder why you don't think it's a bullish trend? The price rose well, all traders with whom I communicate, say that Bitcoin will only grow. These little kickbacks, it's normal. Or did you want it to grow to $ 100,000 in a few months?

I'm not saying this because I'm not thinking about it. If you look at the last bull period, you can see that the price is rapidly retreating. However, you cannot see where it falls for days or weeks. If you're aware, it has started to pull back after $ 13500 and hasn't tended to rise for a long time. When we look at the chart over a long period of time, we can see the rise. However, I cannot say that the current scheme is the bull scheme.

[lionheart78]

Moreover I have also seen people  Moreover coming to even distribution. I barely think there is an even distribution of bitcoin. Whales are still present on a very high scale. The whales are getting richer by using their dirty pumps and dumps. I don't think these thesis show any signs of even distributions.

Indeed see an event that happen in the previous month probably around May when a whale dump 5000 BTC on exchange then raking profit on buying back after the dump.  This show whales getting a bigger part of the pie.

The more coins distributed from large entities to individuals, the better.

 The problem is only a small part are actually distributed  and the bigger part are then acquired by whales through their dump and rebuy strategy.



Increasing  Bitcoin wallet and addresses are sure a sign of adoption but that does not signifies any bullish sign IMO.  At the end of the day the price is still dictated by manipulation of those who have a bigger percentage of BTC holdings (whales).  One example, BAKKT added adoption on the table but yet price plummet.  There are also several news of adoption in different country but look at the current sentiment of the market.

[Wintersoldier]

I think it must be very hard to talk about it. The price of Bitcoin at the beginning of this year was $ 3,000. But in just one month, the price of Bitcoin suddenly rose to $ 14,000. It was like a bull run! But now we see that this is not true. The bull still hasn't arrived. I'm not sure if the bull started even when it rose from $ 8,000 to $ 17,000.

What do you mean that now this is not true? I think not, from 3000dollar to 8000dollar is a big increase actually, it is more than doubled but compared to its market price before which is 17000, it is a bit small. What from the post, I am believing about the capabilites that hashrates can do to cryptocurrency. From increasing hashrates around the world, we can say, bitcoins security is increasing. bitcoin with high security is reliability and reliability is trust and trust means adoption from people around the world as well.

[pooya87]

all true but at the same time you have to keep in mind that none of the characteristics that were mentioned here are 100% accurate. there is always a certain percentage for being wrong.
- hashrate: we see the increase but we have no way of knowing the distribution.
- addresses with funds: we see the increase but again we don't know the distribution. there was a lot of spam attacks against bitcoin, these increase the size of UTXO database by a lot. there is a lot of change addresses,... and a lot more than increase the number without adoption increasing.
- addresses with large balance: it was said there was no increase, this doesn't necessarily mean a good thing. these types of addresses usually belong to big services, their increase could show more and more big services starting with bitcoin. like more exchanges, more payment processors,... if it is not increasing it could mean there is no big decent service anymore.

[MATHReX]

We should also consider that a large number of coins are lost, kept in cold storage, never moved and other factors.
This makes the number of BTC in circulation low which is good for price in the first place.

Now with more distribution of BTC among people will lead to mass adoption which can happen in various ways like accepting BTC for services and goods, etc.
The BTC halving is also going to be such an impactful event that will put its price in an upward trend.

[Kakmakr]

Even though people use multiple addresses, it should still be acknowledged that the addresses with 1000s of coins are not increasing. We do not want a situation where the current Bitcoin whales are increasing and the normal people on the ground only have access to a limited amount of coins.

If you want to reduce Bitcoin volatility, then you have to reduce Bitcoin whales and distribute bitcoins more evenly between more people. The stats are showing that this is slowly happening and that is good for Bitcoin. 

[daayrus]

Even though people use multiple addresses, it should still be acknowledged that the addresses with 1000s of coins are not increasing. We do not want a situation where the current Bitcoin whales are increasing and the normal people on the ground only have access to a limited amount of coins.

If you want to reduce Bitcoin volatility, then you have to reduce Bitcoin whales and distribute bitcoins more evenly between more people. The stats are showing that this is slowly happening and that is good for Bitcoin. 

This is really a good Idea, the whales should be reduced so they will have little or less influence in the market price determination.

[daayrus]

In my opinion, more the distribution less the manipulation. If lots of people get bitcoins and divide the big owners, we can have a better market conditions. This will happen in the near future, the big owners will be selling when they see the high price. We may have huge drops but it is healthy for the market I guess.

It will surely happen, If  and only if the big owners (whales) domination is being reduced

[Willitivity]

Over the years, with increasing distribution of Bitcoin as witnessed with the rising number of Bitcoin wallets being opened across the globe. This just shows that more and more people are gearing up for the big move, that's adoption on one end. As for being bullish, that still depends on other factors. The beauty here is that in the long run, it will pave way for bull run in time to come.

[nelson4lov]

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It will surely happen, If  and only if the big owners (whales) domination is being reduced

No matter how you do it, There's always bound to be big boys and the smaller ones. Even in the life we live in today. The gap will always be there. But I feel, Regardless of that, Bitcoin would still reach is still potential. No doubt, This might be be delayed but it will eventually play out. Final supply is 21M. Be  hopeful Don't forget sooner or later, Adoption would be here.

[qiman]

The Big Guns always know how to amass and accumulate wealth and it is much easier when you already are wealthy, but the fact of the matter is, if you get many smaller people building small amounts of savings too, that can slowly grow the transfer of wealth as well and this is what we want to see happen in Bitcoin. We want more and more mass adoption and then see them smaller wallets participating in re shaping the future. This is all good news then and a sign that we are on the road to mass adoption.

[stompix]

Great charts from Coinmetrics, showing crypto industry growth. For instance, the number of addresses holding at least 10 Bitcoins recently hit an all-time high.

— Brian Armstrong (@brian_armstrong) September 6, 2019

How to make tweet over nothing:


If you're not blind you can easily see the line is almost flat for two years!

April 2017, addresses over 10 BTC:
https://web.archive.org/web/20170418202707/https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html
150,882

Right now:
153,408

Wow!! Amazing!!! An increase of 2% in two years!!! Huge!
And let's ignore the fact that since 2017 1.5 million bitcoins have been mined, close to a 10% increase!!