BTC Hodler activity shows confidence: Rhythm says 60% of all BTC dormant since 2018!

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Bitcoin

Want proof that many investors are in Bitcoin for the long haul?

Check out a brand-new report being covered at Cointelegraph today – a study by an analyst called Rhythm that shows the majority of Bitcoin funds have not moved since last year.

Although there’s scant information anywhere on the web about the identity of the source, “Rhythm” is widely considered a voice in crypto.

What Rhythm found, according to Cointelegraph’s William Suberg in a piece today, was that 60% of Bitcoin has been in the same wallet since 2018, not changing hands or otherwise active on exchanges.

As Suberg points out, that time frame covers the soaring ascendance of Bitcoin up to values around $13,000, and its subsequent crash back down to under $7000 – again, a cutting in half of Bitcoin’s value in just a few months.

We’ve always remarked that Bitcoin represents an extremely high measure of volatility by any reasonable standard.

What that analysis leaves out, though, is the other part of the staying power of Bitcoin – and that involves the way that Bitcoin is created and maintained in an economic system.

Reading through Suberg’s story, you get a good sense of what he calls the “hard money mentality” that motivates Bitcoin investors.

Citing “The Bitcoin Standard,” a book by Saifedean Ammous, Suberg illustrates how Bitcoin is immune to a lot of the manipulations and changes introduced by central banks for national fiat currencies.

“Bitcoiners … continue to exhibit a so-called ‘low time preference’ economically — saving for the future, understanding that it is more profitable to do so than purchase as much as possible as soon as possible,” Suberg writes.

In that way, Bitcoin is less volatile than a fiat currency. So while its value might change according to wild market gyrations, the Rhythm study (along with other investigations) shows that a large number of buy and holders are confident that they are holding an asset with long-term value.

Could the same be said for the dollar?

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