Topic: Is this true or not? (Read 553 times)

The statement may likely be true, because several wallets are been downloaded every blessed day which has an address, and moreover, there are 7.97 billion people in this world of which about 4 billion are kids, whereas the remaining 3.97 are adults, which if you are to sum up the total number of crypto users who own a Bitcoin wallets, we could probably be up to 100million worldwide, of which each users own at least 5 to 10 Bitcoin wallets which has an address (i.e Coinbase, Trust wallet, Binance, Kucoin, Remitano e.t.c) including faucet, casino wallets addresses and dormant wallet addresses that has never done transaction before, the statement could be true. So I don't doubt it

What tools do they used to estimate the volume of bitcoin address and how do they know is 1 billion address?
I think they are giving a random speculation.


Bitcoin prices has never followed these sequence. There have been lots of stories and rumors concerning bitcoin though not all story that works accordingly. So lets assumes that it's a randomly speculated analysis.

How can you say that you are not lucky when you already bought the bottom? Or maybe you mean to say is that the price drops for more after you are done buying? If so then, it should gave you a lesson to not all in when buying but you can choose to keep some of your funds in case the price plunge for more. Logic is truly the ones that we will be using here not emotion. Being emotional is in fact a hindrance here.

@OP that wasn't true. People can believe what they want. Many people believe that bitcoin is an hedge to inflation, this is why they are transferring their fiat money on here. There is no need to wait before we get to 1b wallets.

That's correct it already is an inflation hedge, but you have to look at periods of 3-4 years to see it. I'm 100% sure that it's going to be worth more than 20k after the next halving, so whoever buys today will have more in terms of purchasing power in 2024.


All those bitcoin news sites disappoint me, especially the speculative articles that are like 99.9% wrong. Last time I read them they wer esaying that Bitcoin has broken some bearish trend and is going for 28k USD. A few days later it went down never even reaching 26k.

You mean bitcoin is not and never will be an inflation hedge. I think on the contrary, from the beginning bitcoin has been a hedge against inflation, the price movement of bitcoin is only short term. Looking at the bitcoin price over the past 13 years from a coin that has no value and is currently priced above $20k, there is no other asset class with such good growth over the long term. Gold and real estate have certain utilities in life, but bitcoin also has utilities that neither gold nor real estate have. Depending on the needs of each person and each case, no type is better than the other.

The number of BTC wallets doesn't matter. It can be 1 billion or 100 million.
There are three things necessary for Bitcoin to become hedge against inflation: increasing demand, better utility and decreased price volatility.
I know that the demand for Bitcoin cannot increase forever and there will be ups and downs, but the investors need to recognize Bitcoin as an investment that is secure and promising.
The high price volatility is stopping many investors into putting their money in BTC. I think that BTC will remain a high risk volatile asset forever.
The real anti-inflation assets like gold and real estate have less price volatility and bigger utility than BTC. Maybe that's why they are preferred over BTC.

You are right Bitcoin is less volatile because Bitcoin price is high at the moment, what most Bitcoin price analysts failed to include in their analysis is the fact that, the present price of Bitcoin is an all time high in the past and this is why Bitcoin is less volatile compared to altcoin. So for long term base bitcoin is consider to be the best option since the price volatility ratios is low,  as it stands Bitcoin inflation ratio is lower than that of the United States. And talking about altcoin there just garbage that can easily get pumped and dump at will. When Elon musk thought Bitcoin to be like dogecoin he made is statement and coincidentally the price dropped significantly and many believe that Elon musk statement contributed to the drop in the price of Bitcoin, but than Bitcoin have maintained a strong resistance level that did not allow Bitcoin price to drop below the previous two all time high before Elon musk came into the scene.

Why does Binance charge cheaper fees for legacy vs SegWit (0.0002 vs 0.0005 BTC)?

https://www.binance.com/en/fee/cryptoFee

Does it make any sense? AFAIK, they also batch transactions...

That's true, we are in a period where LN will not be forced to be used, hell people still use Legacy network for bitcoin and pay tens of dollars just for a simple transaction but they prefer it that way and they can do that. We are mainly using segwit and bech32 addresses, and pay very little amounts these days which is also fine as well.

In the near future, LN could become more popular overtime because it's cheap but I guarantee you that it will not be a big deal considering we will always have options. This will result with bunch of people using bunch of different ways and not really everyone using the same thing but it's all bitcoin and its blockchain nodes for sure.

I guess it's all just assumptions a person makes based on what he's learned.
Maybe other people will have other assumptions that are different from that person.
What is clear is that we will not know whether the assumption is right or wrong because we have not lived what it is assumed to be.
So rather than go into that assumption, we should enjoy the journey of bitcoin from time to time while we still have the opportunity.
I don't think too much about those assumptions because it would take a lot of time to think about them.

For the early adopters, there's no argument needed as we've proven that bitcoin is a good hedge against the inflation. But as said to those that we can say, late and ATH buyers, they are yet to prove this one. But if they do such buying more while it's low and holding it until the price gets over their buying price, they can prove to themselves that bitcoin is literally a good hedge against inflation.

I agree, and those that have bought at high requires more patience to prove to themselves if they truly believe unless they losses that patience and sold at dip with losses. Can't blame them for that decision though.

Exactly. When the market shows opportunity, they won't bite it as they think that it'll get lower but look at them when the market shows dominance and bulls again, they're the quickest to be hyped.

I wasn't "lucky" when I bought the March 2020 bottom. I used logic, not emotion. Didn't even buy the COVID fearmongering.

I was studying BTC for years and just waited for the right moment... the COVID economy meltdown (black swan event) gave me that chance.

firstly inflation/deflation is not based on the daily/weekly pris whims. its more about the long term view of 1 year-1 decade view of value vs product purchase ability

yes its not smart to "buy the high". and if you look at the amount of orders happening at the $69k-$70k range. not many people did actually buy the high.. thats why it topped out and ran out of buyer energy to stop going any higher.

for those unlucky few that used emotion instead of logic to have bought at the high. thats not a flaw of deflation or a fault of bitcoin. thats a flaw in human emotion and decision.

that said. those unlucky few will have to wait a bit longer to realise the deflationary effect as they will have to wait longer for deflation to catch up to that temporary price speculative bubble moment.

on the flip side not many got lucky to "buy the bottom" who get to see deflationary action profit them sooner.
but again this is not that deflationary effect is a daily/monthly effect thats noticeable that soon. its a long term view of 1 year/1decade. where it start to be felt by the masses in a noticeable way.. and only a few people got lucky to have picked the right temporary cheap rate to get their value noticed sooner

bitcoins deflationary rate has nothing to do with the price whims of the daily/monthly changes. as thats just speculative changes within the price window. what is deflation is the subtle hidden change to the price window the price moves within. where the lowest bottom edge of the window was lower last cycle than it is this cycle. slowly moving up each cycle

EG, the windows:
2009-2012  $0.01-$32
2013-2016  $13-$1200
2017-2020  $750-$20k
2020-now   $4.8k-$70k
where by the deflationary increase is

2009-2012  $0.01
2013-2016  $13
2017-2020  $750
2020-now   $4.8k

BTC is not a hedge against inflation if you bought in the ATH and didn't hodl for 4 years at least.

Was it a good idea to buy at 69k? No, unless you plan to hodl for 4 years (until 2025).

Will it be a good idea to buy in late 2025 (new ATH)? No, unless you plan to hodl until 2029.

It's as simple as that.

Almost nobody wants to buy during a bear market, everyone wants to buy during euphoria:

https://en.wikipedia.org/wiki/Herd_behavior
https://www.investopedia.com/articles/financial-theory/08/contrarian-investing.asp
https://alternative.me/crypto/fear-and-greed-index/

Currently and until late 2022-early 2023 it will be an excellent time to accumulate, just like it was back in 2018-2019 and 2014-2015.

I'm gonna love it if BTC reaches 1 million USD by late 2025, then it drops to 200-300k by late 2026 and everyone calls it "dead" and a "bad" hedge against inflation.

It will ALWAYS be bad if you want a get quick rich gambling scheme.

People need to learn how to practise patience:

https://www.youtube.com/watch?v=Yo4WF3cSd9Q

its not about bitcoin needing X users

bitcoin is a hedge already. its deflationary by its very nature..

if you had $2000
and put $1000 in a bank account
and bought $1000 of bitcoin

you yourself (dont worry about anyone else) will definitely see how your bank account value buys you less product year on year, and your btc holdings can buy you more products year on year

if 1 billion people want to hedge against fiat then yes 1 billion people would need to use bitcoin

but if only 60million want to hedge. then obviously only 60million need to use bitcoin.

its not a case that bitcoin only acts deflationary if X people use it.
bitcoin was deflationary even back in 2010-11 when there was not even a million users

bitcoin is deflationary by default of the code rules. not due to people counting

It's correct that about a billion different addresses have been used, but that number is meaningless: it's like counting how many people touched different banknotes.
There are about 40 million funded Bitcoin addresses, and since many users have more than one funded address, there are less wallets than that. It seems like the majority of Bitcoin "users" keep it on an exchange. It's debatable whether or not they can be considered real Bitcoin users.

It is highly volatile, but it does appreciate in value overtime, hereby it does stand against inflation (US dollar's, not its). Whoever bought when it was valuated at less than $20,000 has somewhat protected himself against inflation. Bitcoin gives more than it take over the long term; charts say so, not just me and Oshosondy.

Cointelegraph really disappoints me.

I also don't agree with the article, in my opinion bitcoin will be a good hedge against inflation in the long run. If you bought BTC last year near the ATH than it's not a good hedge. The high volatility we are seeing at the moment can discourage some investor now to invest. But the cheaper you manage to buy bitcoins the better it will be as an hedge in the long run. Another thing with the bitcoins price is that it's always quoted in USD and the Dollar had a very strong year, rising 10-20% against many other currencies. Taking that into consideration for all of the non USD investor it's another boost to the inflation hedge.  The number of real bitcoin wallets is hard to calculate because so many wallets change their address for every new transaction. Even the mobile wallet that I only use for small transaction below 100 USD changes the bitcoin address regularly, and then most of the investors have not only 1 or 2 wallets but probably 3-5.

Everyone has a mark they expect bitcoin to reach before they begin to see it as a possible hedge against inflation, but choosing to see it as one or not has not stopped it from acting as a hedge against inflation.


I agree with you somehow. I think many people fail to agree with this because it is unexpected and because bitcoin is still considered unreliable to them they fail to regard it as a possible hedge against inflation. Like I mentioned that people say things based on opinion, you will get to find out that these opinions are not the same amongst everyone, so as some say bitcoin is not a hedge against inflation yet or will ever be, some other experts have gone ahead to endorse it as one of the possible hedge against inflation.
https://www.cnbc.com/select/where-to-put-your-money-during-inflation-surge/

we can just think number of addresses mean adoption for bitcoin. i see nothing beyond that. each person can hold different types of hedges against inflation.  bitcoin , stock, gold  or whatever it is. it depends on each different person.

actually speaking bitcoin is a great inflation hedge i.m.o . if we invested in 2010 we face no inflation. but the risk is high volatility of bitcoin. to use bitcoin as a hedge against inflation we must have knowledge about market conditions ans fundamentals. if we bought the top on 2021 April we would have just lost our money. but if we buy now at this moment we would be making a great inflation hedge as well as we will make a nice ROI.