Bitcoin is on the rise. For months and months, many have hoped for this moment and now it seems to have arrived. The price jump has been huge, tripling in value in under six months. It may not have reached an all time high in terms of price, but something else to do with the coin has.
The number of addresses has reached its highest point in the coins short history, in a potentially interesting development for the price and certainly a positive one for mainstream adoption.
So, what does this mean for the industry? How important is the new all time high on the industry and what implications may it have?
Scarcity the key to price rise
In order to truly analyse what this means, we must start by looking at the fact that one day Bitcoin will run out. This is because the first ever cryptocurrency was designed to be deflationary and was hard-capped at 21-million BTC.
Millions are said to be gone on the blockchain due to lost keys or because asset holders die without transferring the keys to other owners – which could be the case with Bitcoin creator Satoshi Nakamoto.
All time high for bitcoin holders is very important. Because of the potential rarity of Bitcoin, as the numbers of holders increase, the value of the asset should grow. It is simple supply and demand.
The potential impact scarcity can have on the long term value of Bitcoin is difficult to hide away from and could potentially be an important factor. Partner that with what the statistic shows for the popularity of crypto and perhaps we will look back at this moment in history as a very important moment for the industry. .
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