A whopping 81% of people say that they are primarily using Bitcoin as a long-term investment, according to a recent poll. The poll was conducted by popular analyst PlanB who is known for using the scarcity-based Stock-to-Flow model to determine the price of BTC.
So we use #bitcoin for long-term investing, and dirty fiat for buying stuff. These invested bitcoins are locked away for years. The amount of bitcoin available for buyers might be far less than we think. And the 1800 available miner coins per day is going to 900 in about 18 days. pic.twitter.com/GQefUvXnmB
— PlanB (@100trillionUSD) April 22, 2020
While 7.3% used BTC for trading purposes, only 3.1% used the digital asset for payments and purchases. This makes sense given the scarcity of Bitcoin, which means the scarcer the object the more its value.
Bitcoin climbed to its all-time high of $20,000 during its 2017 bull rally and currently trading around $7,000, BTC/USD is still down 64% from its ATH. With price prediction going as far as $100k by December 2021 and a million dollar per BTC further in the future, investors would want to HODL it till a higher price. PlanB said,
“These invested bitcoins are locked away for years. The amount of bitcoin available for buyers might be far less than we think. And the 1800 available miner coins per day is going to 900 in about 18 days.”
Interestingly, these long-term investors are currently increasing their positions and accumulating more BTC each day as per the data provided by Glassnode which reported,
“Bitcoin HODLer Net Position Change has been growing daily since the end of March and is now hitting yearly highs.”
Also, new money is flowing into the crypto market via stablecoins. USDT addresses with a holding period of over 30 days have doubled since February as their volume increased 135%. IntoTheBlock tweeted, Tether is actually being,
“used as a store of value as the demand for USD is increasing worldwide due to the current crisis.”
Cryptos on the right track for mass adoption
A recent survey on Bitcoin and other cryptocurrencies usage, however, revealed that 34% of the survey respondents use digital currency for online purchases and payments.
While 23% use digital currency for long-term investment, 20% see it as a safe haven/digital gold, 16% for portfolio diversification, 16% for control of their own data, 24% because they have a general interest in the technology and another 24% consider it for short-term investment/speculation purposes.
A small survey pool, 3,000 respondents compared to 14,370 voters on the poll, too many options, and inclusion of other cryptos like Ether, XRP being part of the survey could be the reason for the differences in results.
Given that digital payment methods are faster with lower cost while offering convenience, digital currencies like XRP are gaining traction in the payments field. However, they were the least popular method amidst the likes of online baking, PayPal, and mobile apps like Google Pay and AliPay. Eric Anziani COO of Crypto.com, the company that conducted the survey along with Economist Intelligence Unit said,
“This is a strong indicator of a trend that shows digital currencies are on the right track for mass adoption; with its potential to enhance the existing payment infrastructure and efficiency.”