cryptocurrency News Update

Crypto exchanges are the biggest HODLers
On October 8, the Token Analyst wrote that, historically, the amount of bitcoin (BTC) held in exchange wallets has been on the rise.

Token Analyst’s Twitter account, which provides its followers with real-time and historical blockchain and crypto data, estimates that nearly 1.2 million coins are currently being held in the wallets of eight major exchanges. The Token Analyst has begun describing these accounts as “the biggest HODLers.”

Token Analyst shared a graph to accompany his Tweets, which indicates that Huobi Group is currently the leader of the pack of crypto exchanges, currently holding the most BTC in its wallets. Binance and BitMEX are currently contesting for second place.

View the Takeaway

 

Store of value
One of the long-term arguments for bitcoin is that, unlike stocks and bonds whose prices are often highly sensitive to the decisions of central banks and governments, the cryptocurrency is independent of sovereign authorities. Instead, it’s governed by fixed policies that are hard-coded into the underlying network, and therefore difficult to change.

Under those rules, the supply of bitcoin is capped at 21 million, so it won’t be prone to inflation like developed-market currencies such as the U.S. dollar, euro and yen might be if their respective central banks resorted to more money-printing as a way of stimulating their economies.

Indeed, President Donald Trump, running for reelection in 2020, has repeatedly called for steeper interest-rate cuts by the Federal Reserve, while accusing China of artificially pushing down the value its currency, the yuan, to get an unfair advantage in international trade.

Many cryptocurrency proponents characterize bitcoin as Gold 2.0 – essentially a newer, technologically improved and more portable form of the precious metal, viewed since ancient times as a reliable store of value.

“Bitcoin is slowly becoming digital gold, but it’s not there yet,” said Qiao Wang, New York-based Messari’s head of product.

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