The 5 Most Important Charts Tracking Bitcoin Adoption
Bitcoin is a global social economic experiment that has proved to be a store of value to those who no longer trust Central Banks. If you are reading this, and you live in a developed nation, then you may have a few doubts about the above statement.
But if you live in a developing nation, then I am sure you are well aware of the inefficient, dated and corrupt decision making practices that result in an inflated national currency, that holds no power on the global playing field. I’m talking about countries like Venezuela & Zimbabwe where a stable national currency is the thing of the past. These are not isolated examples. Time will show that many other countries are destined to follow the same path.
This is what Bitcoin aims to solve.
The Genesis (first) Bitcoin block was mined on the 03 Jan 2009, and included a text extract from the front page of The Times newspaper, which read as follows:
“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”
This is no coincidence. Bitcoin was created as a result of the ineptitude of Central Banks.
We believe that Bitcoin is not going away anytime soon and will continue to serve as a store for value for those who are tired seeing their savings and assets decrease in value, due to an inflating national currency.
To support this notion, we decided to highlight the most important charts and graphs that show live data representing the growing adoption in Bitcoin globally.
1. bitcointreasuries.org
Bitcointreasuries.org tracks the amount of Bitcoin held by Public, Private and EFT like companies. A good metric to track the institutional interest in bitcoin. Leading the way is MicroStrategy, with the largest holding for a public company (71,079 BTC). When it comes to ETF’s, the Grayscale Bitcoin Trust leads the way (649,130 BTC). At the time of writing, the companies listed on bitcointreasuries.org total Bitcoin holdings represents 5.87% of the total Bitcoin supply.
2. Grayscale Bitcoin Trust
The Grayscale Bitcoin trust, as mentioned above, is currently the largest Bitcoin Exchange Traded Fund (ETF) product available. Investment Companies who are unable to purchase Bitcoin directly, due to regulatory obligations, will find it easier to invest via an ETF style listed product. Grayscale is a first mover in this department with several other Cryptocurrency ETF’s. The ETF purchases Bitcoin on behalf of institutional investors, at a slight premium.
Below you will see the blue bars that represent the growing size of the fund. At the time of writing the fund held just under 650,000 Bitcoin. As institutional interest keeps growing up, we can expect to this number to rise. Furthermore its interesting to see the correlation between price (in red) and growth in holdings (blue).The below tokenview link shows the live daily holdings value.
3. The Stock-to-Flow Model
Stock-to-flow models are used to evaluate the current stock of a commodity (total amount of BTC currently available) against the flow of new production (amount BTC mined that specific year).
Basically the chart shows the expected Bitcoin price direction, based on the decreasing supply of new Bitcoin mined. You can read more about the halving process here. All that you need to know is that the Bitcoin supply decreases over time, it is deflationary by nature.
Currently, there are around 900 BTC mined each day. If the average daily demand for Bitcoin exceeds 900, in the long run, then we can expect the price of Bitcoin to increase over time. This is what the below model shows. Companies like Grayscale, on their own, regularly purchase in excess of 900 Bitcoin on a daily basis. In November 2020 they purchased over 15,000 Bitcoin in single day.
4. r/Bitcoin
The r/Bitcoin subreddit forum is the largest online community dedicated to Bitcoin. Boasting over 2,2 million subscribers, it is currently one of the fastest growing channels on Reddit. This online community share insights, memes and content around Bitcoin and serves as an important voice for the bitcoin community.
As you can see by the below, the forum subscribes continues to grow as more people are drawn to Bitcoin. Another important metric for Bitcoin adoption. You can track the live number of subscribers via the subredditstats link below
5. Wrapped Bitcoin
Wrapped Bitcoin, also referred to “Bitcoin at Work” is a term for Bitcoin that has been “wrapped” and converted to a synthetic version of Bitcoin, that can be used on the Ethereum Network.
It opens up a head of other use cases for Bitcoin since as the Ethereum and DEFI allow individuals you access a wide range of Dapps and financial services.
DEFI PULSE provides a live view of the total amount of Bitcoin wrapped and “locked” into the Ethereum network. As you can see below, this currently sits at 163,966. This number will continue to grow.
Below you can see the number of different synthetic “wrapped” bitcoin options available. As the number of bitcoin on the Ethereum network increases, there will be fewer BTC available to purchase on exchanges. This puts further pressure on the supply.
The above 5 graphics give you an excellent view into the current state of Bitcoin adoption. Better yet, the data is all available to the public and updated daily! See links below image for respective link.
The landscape for Bitcoin is changing quickly and we believe these 5 datasets provide much needed clarity. We hope this post will serve as a useful reference to archive the 5 above data points at the time of writing (04 Feb 2021), compared to your present day reading. You can measure the adoption.
There will only ever be 21 million Bitcoin. As more Bitcoin gets locked up on company balance sheets, in Investment Funds and on the Ethereum network, there is less Bitcoin available. This is the supply and demand dynamic that will drive Bitcoin’s price in the years to come. And the reasons many around the world are resorting to Bitcoin, as the ultimate store of value.
