Excessive accumulation of BTC could result to an increase in the inflation rate

[Flow-er]

Analysis showed that the bitcoin holders are accumulating a massive amount of the bitcoin in their wallets and this could be very detrimental to the price of bitcoin itself. It was known that the amount of bitcoin that is been accumulated by the bitcoin holders is far more than the amount of bitcoin that was specified to be mined in a day. About 900 BTC is to be mined in a day but the amount the amount that is accumulated by the bitcoin holders is far more than this.

Experts predicted that there could be a serious inflation rate around the bitcoin and it will affect the price of the BTC negatively. In other words we should expect in decline in the price of bitcoin if this is not corrected.

It was analysed that the inflation rate of bitcoin has increased to 14% in the last seven days and which is not healthy for the market capitalisation of the king coin. This is a very clear indication that the best strategy the whales around bitcoin are using is the hodl strategy. This means the holding of the bitcoin for a very long-term irrespective of the market fluctuation around it.

The bitcoin hodlers are making huge amount of profit from this strategy and that is why we are having more of the institution always getting involved in holding lots of bitcoin in their wallet for a long-term investments. It is one of the things that affect the price of the BTC and if care is not taken it could further cause a crash in the market value of the bitcoin.

 

[Jasz]

Sooner or later this will happen if there are no adequate measures put in place.
Bitcoin is a digital asset and it is becoming more popular these days as there are many advantages of using virtual currency. But the use of digital assets has been regulated by the government. One of the regulations is that the users' identity should be verified. This would prevent criminal activities in which people make transactions anonymously with cryptocurrencies.

It is important to note that Bitcoin does not have intrinsic value like gold or silver does. It only has value because people believe it does and because its price keeps rising. And since it is based on supply and demand, if there is an increase in demand for Bitcoin but no increase in supply, its price will go up. And if there is an increase in supply but no increase in demand, its price will go down.

This means that if you have a lot of bitcoins, you could sell them at a higher price and make a profit. You could also buy bitcoins at a lower price and then sell them for a higher price later on when their value goes up again. This would allow you to make money even though your initial investment was small.

 

[Lens1000]

This thread is informative and also educative because I never knew that accumulating a huge amount of bitcoin could instigate inflation around it. This is a very good information that we must take into consideration when dealing with cryptocurrency. As it is now most of these successful cryptocurrency trader used the holding strategy. They prefer to hold the bitcoin than to trade it the percentage of the people that are holding the bitcoin are far higher than those that are trading it in the crypto market. It will be very nice if one could take into consideration this particular strategy so as not to create inflation around the bitcoin. It is very surprising that the amount of bitcoin that is kept or stored by the whales are far more than the amount of bitcoin that is expected to be mined in a day. This is to show that the amount of bitcoin that is kept in wallet is very huge and they could be regarded as a dormant bitcoin because they are not traded in the cryptocurrency market and obviously they are not adding value to the market capitalisation of bitcoin in general. It will be very good to regulate bitcoin around the strategy.