HODL: Percentage of Untouched Bitcoins at Highest Point Ever

Again a record for bitcoin. According to Coin Metrics data, the number and percentage of untouched bitcoins has reached the highest point ever in the last five years. No less than 21.6 percent of all bitcoin was not touched during this period.

By untouched, Coin Metrics means that the bitcoins have not been moved from wallet to wallet in the past five years. Will the HODLs of bitcoin return all the way?

What is HODL?

Huh, what is HODL? The crypto world is full of crazy terms. HODL means the long-term retention of your bitcoins or other crypto coins. This instead of trying to sell at the top and buy at the bottom.

HODL is a corruption of the English term hold, and first appeared on the bitcoin forum bitcointalk. Then a user made a language error, and since then it has been a well-known term within cryptowerledl.

Bitcoin as a store of value or as a medium of exchange

According to Coin Metrics, this data suggests that bitcoin is increasingly becoming a store of value. Store of value is one of the most important characteristics of money. To be useful as money, bitcoin must be easy to store. Fortunately, saving can become easier and safer, for example with a hardware wallet.

Bitcoin analyst Willy Woo is however concerned about some HODLs. He thinks it is a worrying development when all bitcoin will soon be in the hands of a small concentration of investors. According to Willy Woo, these investors will then become the “new bankers”.

Probably the greatest risk to Bitcoin’s dream is concentration of coins to a few hands, they’ll be the new bankers.

– Willy Woo (@woonomic) July 23, 2019

And according to Tuur Demeester, we should not take the data too seriously. He is co-founder of investment company Adamant Capital. Demeester states that most untouched bitcoins have been lost in the past five years.

I’m not so sure … 5 years without updating your cold storage method is a long time in Bitcoin. Imo most of these coins are probably lost. pic.twitter.com/lJmEOiPvY3

– Tuur Demeester (@TuurDemeester) July 23, 2019

Also in the shorter term

Bitcoins are not only held for the past five years, but also for a shorter period. The graph below shows that bitcoin has been moved less and less since March 2018. For example, these may be investors who have bought at the top and are waiting for a higher price:

It may well be that this percentage of retained bitcoins will change if bitcoin reaches a new peak. We will keep an eye on the developments for you!