- Should you keep hold of your bitcoin or sell it as soon as you get your hands on it?
- This is a question that many investors ask themselves on a daily basis.
- This causes arguments in the community but when you look at the statistics and the facts, a different picture comes out.
Should you keep hold of your bitcoin or sell it as soon as you get your hands on it? This is a question that many investors ask themselves on a daily basis. Especially during the highs in 2017 when the leading cryptocurrency took off to $20,000 in December of that year.
However, ever since it was created, the case of whether the flagship currency should be sold or held has been a constant debate in the community. The two main arguments cause contention in that bitcoin is a store of value (according to some). Others say it should be used as a medium of exchange - in a similar sense to the dollar in buying your day to day cup of coffee and groceries at the end of the week.
Obviously this causes arguments in the community and has even created the word “hodl”, but when you look at the statistics and the facts, a different picture comes out.
Looking into a recent report by Glassnode, it stresses the use of the term ‘entities’ rather than ‘users’ or ‘individuals’. This is because the study has mapped out several addresses to a single entity.
In the ‘Distribution Statistics’ part of the research, it goes on to highlight that there is an obvious power-law relationship. Such a term came to describe how looking at the size of such entities ranging from a single address entity clusters causes division.
The biggest ‘entity cluster’ regulated was the extremely prominent and popular cryptocurrency platform, Coinbase. Almost 100% (96%) of the entity clusters consist of a single address which the report highlighted.
The closest bunch of entities ended up rounding up to 22.3 million hodl less than one bitcoin.
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!