And yet whales are accumulating more and amounts are increasingly going off exchanges into cold storage or for staking.
Wallets 1,000+ Have been dumping for months. Those are the whales. I have seen many repeat the same thing you have yet I don’t know where that data is coming from. I have seen some coins leaving exchanges data but it isn’t coming from whales.
Over time the masses will be trading over the second layer via lightening network. So these will be hundreds of millions of people who don't appear on the base layer. And indeed the base layer will become consolidated by larger players, institutions, HNWs, banks, brokers, custodian service providers, old school hodlers, lost private keys, etc. So, what we really need to be looking at is adoption of lightening wallets. And that metric is growing at a stunning pace.
ETH has overtaken BTC for growth in wallets which makes sense as ETH is defi. What is going to be interesting is if Saylor, the self elected CEO of Bitcoin will block projects that might raise regulatory concerns over bitcoin therefore putting his investment at risk.
His own words, he want the top layer as BTC which is a parking lot for money (makes sense). He does not want anything else than that. If you want to make payments, you move from the BTC layer into local currency in order to make a payment. He doesn’t want the US (and therefore probably anybody) to perform payments in BTC. The regulatory risk is to treat for him.
It makes a lot of sense what he says. I’m all for it but I just don’t think it will perform how people think it will. Gold is supposedly the thousands of year proof of inflation hedge. Look at the price chart, parabolic spikes and then decades of nothing.
Ironically gold looks a lot like a Bitcoin chart but on a longer timescale where peaks trigger around events. Hence why I say HoDL isn’t much good because you spend 90% of the investment life in downtime.
Indeed people who purchased Bitcoin for 20k were underwater for 4yrs. Who is to say people who bought at 64k will be underwater for 6yrs? The next round might be a decade waiting? If Bitcoin is digital gold, it stands to reason it should behave like gold which means decades of lows and parabolic peak around monetary events.