The number of Bitcoin addresses reaches an all-time high which exceeds the 2018 level. In 2018 there was an all-time high of 28.38 million and the number has jumped to 28.39 million. This is very much unexpected especially due to the bullish market condition and the downward trend of Bitcoin in the recent past.
According to Investors, Bitcoin is in a “Wait and See” mode hence investors are patiently waiting for Bitcoin to resume and gain momentum. Maybe that is one of the explanations why Bitcoin wallet addresses have hit an all-time high despite the performance of the cryptocurrency.
Bitcoin has had a consistent upward growth from 2009 to 2017. At the beginning of 2018, the bear market made investors sell their Bitcoins and that led to the drop in the number of wallet addresses from 28 million to 21 million. As from late 2018, the condition changed and its currently on an upward trend.
Can the wallet determine the number of Bitcoin users?
Since it is hard to track and know the number of Bitcoin users, Bitcoin wallet addresses have been used as a proxy to approximate the number of Bitcoin users. This is however not an accurate approximation as there are individuals who have several addresses. Some even create new addresses for every transaction due to security reasons. According to Alex Thorn of Coinmetrics, it is important not to forget that there are also individuals who keep their addresses with exchanges and thus are likely to use single addresses. Thorn indicated that though it is not accurate it is a decent estimation to know the number of Bitcoin users and can be used as a basis of judging the adoption of the currency.
According to Jim Reid who is s strategist with Deutsche bank, the number of bitcoin users is set on the rise and thus bitcoin wallet addresses may surpass 200 million by 2030.
There are many changes in the cryptocurrency space and Bitcoin being the dominating currency means that it has so much potential. The buzz created on social media and all over the internet on cryptocurrency has created a lot of interest especially for investors who are looking to diversify their investments. Another factor that gives Bitcoin an advantage is the fact that it is the most traded cryptocurrency in crypto exchanges.