Why Doesn't Anyone Seem to Care About the 75% of Bitcoin That Have Never Been Used?

When closely examining the narrative around Bitcoin, one peculiar detail often gets overlooked: 75% of all Bitcoin have never been traded or used in any transactions. This intriguing statistic raises several questions, including whether the U.S. National Security Agency (NSA) or a select few individuals might hold a significant portion of these unspent coins. This article delves into the reasons behind the apparent lack of concern over this phenomenon and explores the factors influencing Bitcoin's value.

Bitcoin as an Investment

One reason why there is little public discussion about the high proportion of unused Bitcoin is the heightened perception of Bitcoin as a valuable investment. Many individuals and investors are treating Bitcoin like any other rising stock or portfolio asset. While this viewpoint does carry some justification, particularly considering the historical performance of Bitcoin and its role in the broader cryptocurrency market, it is essential to question why so much attention does not focus on the underlying distribution of these coins.

Historical Context and Laziness

The idea that 75% of Bitcoin have never been used can be attributed to a combination of factors. Firstly, the creation of Bitcoin reached its initial phases where the mining reward was 50 BTC, and subsequently reduced to 25 BTC. During this time, the number of miners was significantly lower, leading to less institutional and widespread adoption of the cryptocurrency. This period was also marked by limited monetary value, making many individuals less cautious with securing their private keys and the hardware they used to store them. Consequently, some of these wallets and their associated Bitcoin has been left unattended and effectively abandoned.

The NSA and Bitcoin Hoarding

The notion that the NSA or a few specific individuals might hold a large amount of these unused Bitcoin coins is another subject of speculation. Any discussion about the NSA and Bitcoin involves the classic struggle between law enforcement and digital sovereignty. Some might argue that if the NSA were indeed hoarding Bitcoin, it would more likely follow a pattern similar to that of the Iran-Contra affair, where funds were used for sanctioned activities. However, considering the NSA's budget and the limited utility of Bitcoin compared to other potential investments, it is more plausible that the agency is focusing on other areas that benefit from their surveillance and intelligence-gathering capabilities.

Real World Trends and Studies

Recent data from Coinmetrics indicates that the number of Bitcoin held in addresses that have not been moved in at least five years is at an all-time high. As of July 19, the number of coins meeting this criterion reached 3,847,859 BTC, representing 21.6% of the total supply, also a five-year high. This shift in the distribution of Bitcoin suggests a growing trend towards it being stored as a long-term store of value rather than a medium of exchange.

The Bitcoin blockchain is public, which means we have access to the distribution of wallets holding large amounts of Bitcoin. CoinPaprika provides comprehensive data on the top 100 richest Bitcoin wallets, revealing how these funds are distributed among various investors.

Perception and FUD

Another reason for the lack of concern over the high proportion of unused Bitcoin is the prevalence of FUD (Fear, Uncertainty, and Doubt) narratives. These narratives are often propagated by people and organizations with vested interests, trying to create a negative perception of Bitcoin. By focusing on the fact that these coins have never been used, they aim to spread doubt and skepticism about the cryptocurrency's value and utility. It is important to remember that the true value of Bitcoin lies in its market performance over the long term, not in its short-term usage patterns.

In conclusion, the lack of public discussion about the 75% of Bitcoin that have never been used is partly due to the rise of Bitcoin as an investment, the historical context and distributed nature of these coins, and the broader concerns surrounding the potential involvement of intelligence agencies. Understanding these factors allows for a more nuanced and informed perspective on the future of Bitcoin and its role in the financial world.