Two research firms Chainalysis and Diar recently released a report stating that 36% of Bitcoin in circulation is either lost or is yet to be mined. If the report by the firms is to go by, about 6.2 million bitcoins have been lost and could never be recovered.
The report goes on to state that investors hold a 30 percent while speculators hold 22 percent stake in the circulation supply. The figures amount to around 5 million and 3.8 million BTC in circulation respectively.
The fact that Bitcoin’s hard cap or maximum supply has been set to 21 million, there is no doubt the cryptocurrency is technically scarce. This is due to the fact that 6 million bitcoins are missing. Also, there are the 3.7 million unmined bitcoins. That means investors and hodlers are left with a very small percentage of the cryptocurrency.
Buy 1 BTC before any other altcoin
The creator of Litecoin who holds no LTC, Charlie Lee, might have been right when he advised crypto investors to hold at least 1 BTC before they start investing in any other altcoin. His tweet that dates back to mid-July this year says:
“There will be at most 21 million bitcoins in existence. There isn’t even enough BTC to go round for every millionaire to own one. So before you buy any other coin (LTC included), try to own at least 1 BTC first. Once you have 1 BTC, buy all the shitcoins you want!”
The future of Bitcoin
Bitcoin has attracted the interest of institutional investors from Wall Street including Bakkt and CBOE who have a pending ETF application at SEC. Looking at the performance of Bitcoin’s price in the last few days, this could mean that a former hedge fund manager Michael Novogratz might also have been right. He confidently said on September 12 that Bitcoin had reached its bottom (at around $6,200).