Bitcoin activity drops to lowest level since 2010

[larry_vw_1955]

https://cointelegraph.com/news/bitcoin-activity-lowest-level-since-2010

Juan Pellicer, a senior researcher at IntoTheBlock, attributes Bitcoin’s decreasing wallet activity rate to weaker retail participation than in past cycles.

that's why bitcoin struggles once it gets to about $70,000 because no one is really using it for any real world use cases, they are just hodling. hoping to sell it for more than they bought it.

that's why i'm starting to think that ethereum will eventually overtake bitcoin in usefulness in the real world since ethereum seems to be upgrading their network and really pushing the envelope. not that i'm a huge fan of ethereum but the writing is on the wall about that. eth has more development efforts going into it than bitcoin for sure.

[Plaguedeath]

According to their site, active address i.e. daily active address is an address making transaction in a day, so if tomorrow the address didn't make any transaction, it will become inactive address.

Saying that the fall of active address is a sign of retail participation in buy and sell Bitcoin activity declines isn't correct. People can deposit their fiat to centralized exchanges, buy Bitcoin and hold the coins on there because people don't want to pay on-chain fees.

Moreover people tend to use Bitcoin as an investment, so the decline of on-chain activity isn't surprising.

[mk4]

that's why bitcoin struggles once it gets to about $70,000 because no one is really using it for any real world use cases, they are just hodling. hoping to sell it for more than they bought it.

"Hodling" is a real-world use case lol. I don't really know why a lot of people are so against holding as if investing in an asset that you think will increase is a bad thing.

that's why i'm starting to think that ethereum will eventually overtake bitcoin in usefulness in the real world since ethereum seems to be upgrading their network and really pushing the envelope. not that i'm a huge fan of ethereum but the writing is on the wall about that. eth has more development efforts going into it than bitcoin for sure.

Because both assets have a different use case. Bitcoin's schtick is an asset that has a network and codebase that's so secure that you wouldn't even need to be updated to what's happening every month.

Ethereum, on the other hand, is a decentralized applications platform so they need to make updates frequently with the risk of having errors/failures/exploits.

[kryptqnick]

Bitcoin isn't commonly used as a currency, but that might change at some point. It also in no way supports the idea that Ethereum is somehow more suitable as a currency, IMO. It's not surprising that wallet activity is low: traders use crypto exchanges rather than noncustodial wallets, and those keeping BTC in their wallets are waiting for a proper bull run. It's a temporary phenomenon.

[Kemarit]

https://cointelegraph.com/news/bitcoin-activity-lowest-level-since-2010

Juan Pellicer, a senior researcher at IntoTheBlock, attributes Bitcoin’s decreasing wallet activity rate to weaker retail participation than in past cycles.

that's why bitcoin struggles once it gets to about $70,000 because no one is really using it for any real world use cases, they are just hodling. hoping to sell it for more than they bought it.

that's why i'm starting to think that ethereum will eventually overtake bitcoin in usefulness in the real world since ethereum seems to be upgrading their network and really pushing the envelope. not that i'm a huge fan of ethereum but the writing is on the wall about that. eth has more development efforts going into it than bitcoin for sure.

Ethereum has more competitor to think of, rather than Bitcoin. And obviously, they are developed with different use case, of course they can't be compare against each other. Ethereum though is very centralized and again they might have change their narrative already.

For Bitcoin, real world use case, - store of value, mode of payment, assets. Buying thru DCA and HODLing is the best strategy combination, it's fool-proof. And that is what the majority thinks, you sell it when the right time comes and you make profits, easy peasy.

[Don Pedro Dinero]

Juan Pellicer sounded quite Spanish to me, and as I see in 'about us' all the team have Spanish names but are based in Miami, so they could easily be Cuban expats or descendants of Cubans.

that's why bitcoin struggles once it gets to about $70,000 because no one is really using it for any real world use cases, they are just hodling. hoping to sell it for more than they bought it.

"Hodling" is a real-world use case lol. I don't really know why a lot of people are so against holding as if investing in an asset that you think will increase is a bad thing.

Well, if everyone holded I don't know what value bitcoin would have, as no one would want to trade it, even if they believed it had a lot of value. This is an extreme case that will never happen, obviously, but the richest economies are those where the most goods and services circulate, whether they are exchanged directly for fiat or other assets such as bitcoin.

[BitGoba]

https://cointelegraph.com/news/bitcoin-activity-lowest-level-since-2010

Juan Pellicer, a senior researcher at IntoTheBlock, attributes Bitcoin’s decreasing wallet activity rate to weaker retail participation than in past cycles.

that's why bitcoin struggles once it gets to about $70,000 because no one is really using it for any real world use cases, they are just hodling. hoping to sell it for more than they bought it.

that's why i'm starting to think that ethereum will eventually overtake bitcoin in usefulness in the real world since ethereum seems to be upgrading their network and really pushing the envelope. not that i'm a huge fan of ethereum but the writing is on the wall about that. eth has more development efforts going into it than bitcoin for sure.

Don't take seriously what you read on Cointelegraph. Cointelegraph is a propaganda service for promoting scam shitcoins. They are scammers.

Activity on the Bitcoin network is at an all-time high, the mempool is full, all blocks are full, and there are 250,000 transactions pending.

Check it yourself

https://mempool.space/

Activity on the Bitcoin Lightning Network is also close to the all-time high from 2021. In the Lightning Network, 5,200 bitcoins worth over 300 million dollars are locked.

https://mempool.space/lightning


ETH is highly centralized and very risky. You have to trust a group of people led by Vitalik Buterin not to rug pull you and leave you with nothing.


ETH, besides being highly centralized and, in my opinion, a scam, has very high inflation, and you never know when the team in control will change the supply policy and print more ETH for themselves. Be very careful and don't put significant funds into ETH because you never know when they might rug pull.

That's why I only trust Bitcoin and don't use altcoins

that's why bitcoin struggles once it gets to about $70,000 because no one is really using it for any real world use cases, they are just hodling. hoping to sell it for more than they bought it.

"Hodling" is a real-world use case lol. I don't really know why a lot of people are so against holding as if investing in an asset that you think will increase is a bad thing.

that's why i'm starting to think that ethereum will eventually overtake bitcoin in usefulness in the real world since ethereum seems to be upgrading their network and really pushing the envelope. not that i'm a huge fan of ethereum but the writing is on the wall about that. eth has more development efforts going into it than bitcoin for sure.

Because both assets have a different use case. Bitcoin's schtick is an asset that has a network and codebase that's so secure that you wouldn't even need to be updated to what's happening every month.

Ethereum, on the other hand, is a decentralized applications platform so they need to make updates frequently with the risk of having errors/failures/exploits.

Many people don't understand what Bitcoin is and what altcoins are. Altcoins are like tech companies with their own founders and CEOs. Bitcoin is a decentralized monetary network, the apex predator. Bitcoin doesn't compete with any altcoin, most of which are scams, but rather with gold and real estate

[Lucius]

~snip~
that's why i'm starting to think that ethereum will eventually overtake bitcoin in usefulness in the real world since ethereum seems to be upgrading their network and really pushing the envelope. not that i'm a huge fan of ethereum but the writing is on the wall about that. eth has more development efforts going into it than bitcoin for sure.

You're in a pessimistic mood these days, aren't you? First, it annoys you that supposedly someone sent 50 BTC to CEX, now suddenly BTC is useless and you claim that an altcoin that is completely centralized, pre-mined and without max supply will become more useful (and more expensive, I guess) than BTC?

Maybe take a little break and come back in a few months, it will be easier for you when the new bull run starts (or maybe not)

[shield132]

that's why bitcoin struggles once it gets to about $70,000 because no one is really using it for any real world use cases, they are just hodling. hoping to sell it for more than they bought it.

"Hodling" is a real-world use case lol. I don't really know why a lot of people are so against holding as if investing in an asset that you think will increase is a bad thing.

I am against holding because holding does nothing good for the community. Forget Bitcoin for a second and talk about cash. What's the point of holding money? Money has to be in circulation in order to create goods, create services and etc... If we hold money, nothing will be done. That's why I am against holding. Yes, I know that the more people hold Bitcoin the higher it's value will be because there is an increasing demand on Bitcoin but for it's massive adoption and usage, we need less holders and more active users.

It's not surprising that wallet activity is low: traders use crypto exchanges rather than noncustodial wallets, and those keeping BTC in their wallets are waiting for a proper bull run. It's a temporary phenomenon.

This is the best explanation but it's also sad that traders use crypto exchanges despite the fact what happened to FTX and other exchanges.

[bitterguy28]

that's why i'm starting to think that ethereum will eventually overtake bitcoin in usefulness in the real world since ethereum seems to be upgrading their network and really pushing the envelope. not that i'm a huge fan of ethereum but the writing is on the wall about that. eth has more development efforts going into it than bitcoin for sure.

not really i mean they are just both very expensive and has high transaction and gas fees respectively at least with bitcoin more people are expecting to gain more profit compared to ethereum

efforts to increase the daily use of bitcoin are being pushed but its scalability needs to be addressed to ensure that daily use can be realistically possible

[bittraffic]

I think it only means Bitcoin is expensive and the retail investors are not trying to buy more of it. It's the big investors only that are trying to trade BTC and some of us are just holding BTC as we are expecting high returns in the bull run we also expect to come. Miners probably doing the same thing, not selling their coins.

There comes a time when ETH will also have this low activity. it's still low even today.

[DeathAngel]

Ethereum will overtake Bitcoin in absolutely nothing. Less on-chain activity is a good thing, HODLING is good thing because it means a less supply. Even if demand remains consistent, the fact that coins are being taken off the market & HODLED, it means there are less coins available to buy which will soon create a supply shock driving the price up. Every cycle we have these self acclaimed analysts who are full of crap, don’t listen to them.

[SickDayIn]

https://cointelegraph.com/news/bitcoin-activity-lowest-level-since-2010

Juan Pellicer, a senior researcher at IntoTheBlock, attributes Bitcoin’s decreasing wallet activity rate to weaker retail participation than in past cycles.

that's why bitcoin struggles once it gets to about $70,000 because no one is really using it for any real world use cases, they are just hodling. hoping to sell it for more than they bought it.

that's why i'm starting to think that ethereum will eventually overtake bitcoin in usefulness in the real world since ethereum seems to be upgrading their network and really pushing the envelope. not that i'm a huge fan of ethereum but the writing is on the wall about that. eth has more development efforts going into it than bitcoin for sure.

Probably due to the increase of fees if measured in fiat. It's more expensive in feat to send transactions on a daily basis, so people are now more than ever really thinking about the cost of fees and making transactions only when needed. This is why faucet's don't work any more, the fees alone would be too expensive. There are not as many dust transactions as the early days.

[mk4]

Well, if everyone holded I don't know what value bitcoin would have, as no one would want to trade it, even if they believed it had a lot of value. This is an extreme case that will never happen, obviously, but the richest economies are those where the most goods and services circulate, whether they are exchanged directly for fiat or other assets such as bitcoin.

I mean, this is actually what's happening? Some people hold, and some people transact/convert with it, and some people — both. So why demonize holding?

I am against holding because holding does nothing good for the community. Forget Bitcoin for a second and talk about cash. What's the point of holding money? Money has to be in circulation in order to create goods, create services and etc... If we hold money, nothing will be done. That's why I am against holding. Yes, I know that the more people hold Bitcoin the higher it's value will be because there is an increasing demand on Bitcoin but for it's massive adoption and usage, we need less holders and more active users.

Because screw what anyone thinks what's good for Bitcoin. The point is that people can use Bitcoin for absolutely whatever reason they want. People will hold if they want to do so, and people will transact if they want to do so. Heck they can throw their BTC towards a burn address if they want to or pay for hookers or whatever.

[Davidvictorson]

This is a very brilliant topic for discussion packed filled with very highly intelligent answers which has a lot of value and learning in it. I hope that the OP will be reading this and will be convinced to have change of mind. For one thing, you cannot agree or draw conclusions on a subject based on the opinion of one source. You should draw your conclusions after studying and reviewing the information from various sources. And I do agree with mk4 that "hodling" is one of the use cases of bitcoin. An example, my country is facing an inflation. Most people monies in the banks are losing value as the currency drops. I withdraw my money from the bank and invests it in bitcoin and hold. My wealth is safe. This perfect use case scenario. 

[larry_vw_1955]

This is a very brilliant topic for discussion packed filled with very highly intelligent answers which has a lot of value and learning in it.

I agree that alot of smart people took the time to provide their own views which I do appreciate.

I hope that the OP will be reading this and will be convinced to have change of mind.

Yes I'm reading all the replies. One thing I disagree with is how user mk4 claims that "hodling" is a real world use case. If that's all bitcoin is good for is storing it and hoping and praying that it goes up enough in value so you can sell it to make a profit then I don't really think that's a very unique use case. And not a very compelling one and if that's all its good for then it probably won't go very high in price.

We needs better "use cases" than not doing anything with it other than buying it and then selling it. That's not a use case. A use case is something you do with it IN BETWEEN.

And I do agree with mk4 that "hodling" is one of the use cases of bitcoin.
An example, my country is facing an inflation. Most people monies in the banks are losing value as the currency drops. I withdraw my money from the bank and invests it in bitcoin and hold. My wealth is safe. This perfect use case scenario. 

For you the IN BETWEEN thing is you are using it as an inflation hedge. That's a valid use case as long as the bitcoin price doesn't drop too far down and is at a bad price when you need to sell some of it. Even the USA has an inflation problem. But I don't consider bitcoin to be the answer to a hedge against inflation simply because it goes up and down in price and we don't know what price it will be in a year from now.  That's more like gambling to me. I'm not interested in gambling when it comes to my fiat. I would rather spend it.

[Don Pedro Dinero]

Well, if everyone holded I don't know what value bitcoin would have, as no one would want to trade it, even if they believed it had a lot of value. This is an extreme case that will never happen, obviously, but the richest economies are those where the most goods and services circulate, whether they are exchanged directly for fiat or other assets such as bitcoin.

I mean, this is actually what's happening? Some people hold, and some people transact/convert with it, and some people — both. So why demonize holding?

At the moment it doesn't seem so, and according to BitGoba both what the OP says and the article on which it is based are false. But if more and more people were buying to hold forever, as Michael Saylor does, it is not at all clear to me that it would be good for bitcoin if the currency did not circulate. And even more so if we take into account that miners have to live off something, and that the block reward is getting lower and lower. If it happens like in the stock market, that many people buy for the long term, but many others keep trading every day, I don't see a problem. But the difference is that bitcoin has a limit that stocks don't have.

[NotATether]

At the moment it doesn't seem so, and according to BitGoba both what the OP says and the article on which it is based are false. But if more and more people were buying to hold forever, as Michael Saylor does, it is not at all clear to me that it would be good for bitcoin if the currency did not circulate. And even more so if we take into account that miners have to live off something, and that the block reward is getting lower and lower. If it happens like in the stock market, that many people buy for the long term, but many others keep trading every day, I don't see a problem. But the difference is that bitcoin has a limit that stocks don't have.

What, did you actually think they would hold forever?

There could be bills to pay, something they need to buy, maybe they fall under hardship and need to sell part of their stash. so there will always be at least some activity, but never enough for the market analysts to say that everyone is ditching credit cards for bitcoin. Blockchain parameters really have nothing to do with this IMO.

[Blitzboy]

Bitcoin and Ethereum are winners, but they play different games. Both valuable, but for different reasons. Bitcoin, thats your digital gold. You cling to it when everything goes wrong. Look at the numbers: even when the market dips, people arent selling their Bitcoin. They're hoarding it like wise investors do with gold during trouble. Ethereum is about blockchain utility and future building. This platform powers innovation, smart contracts, and decentralized apps that will alter the world. Its got real potential, but its a different kind of value.

Some claim Ethereum is the future and Bitcoin is old. They're wrong. Bitcoin is the foundation of this whole thing. The crypto world relies on trust and security. Its not just a currency, its a symbol. It stands for our belief. So dont get caught up in this Bitcoin versus Ethereum absurdity. Both matter and contribute. Ethereum drives innovation, Bitcoin stores wealth. They'll lead us to a future where people have power.