April 20, 2024
1.2 million bitcoins have been removed from the trading cycle due to the financial crisis of exchanges
Digital currency

1.2 million bitcoins have been removed from the trading cycle due to the financial crisis of exchanges

bitcoin

One of the biggest differences between Bitcoin and other currencies is the supply limit of 21 million units. With the formation of financial crises and the liquidation of centralized exchanges, 1.2 million units of Bitcoin were removed from the trading cycle. In fact, 5.7% of the total supply of Bitcoin was withdrawn from the market.

According to Cointelegraph, the reason for the fall of these exchanges was the lack of transparency of their reserves. A similar thing happened to the “FTX” exchange recently. Historical data shows that 14 exchanges and platforms active in the field of digital currencies lost a total of 1.195 million bitcoins. This amount of loss is equivalent to 6.3% of the current circulating supply of Bitcoin (19.2 million units).

The amount of loss of different exchanges in the form of Bitcoin

Reviews by Jameson Lopp, co-founder of the CasaHODL platform, show that the exchange Mt. Gox still holds the record for most Bitcoin lost.

Bitcoin

The lack of bitcoins available for trading is directly related to its price. Lopp also pointed out that the supply of fake bitcoins in exchanges or tokens with similar names has become one of the problems in the digital currency space, and said, “When most people buy fake bitcoins [in exchanges], this digital currency cannot be a suitable tool. to be of value for storage”. In addition, his research shows that there are at least 80 different digital currencies with names containing “Bitcoin” in the market, whose purpose is to mislead investors.

Loop’s conclusion is that investors by buying fake bitcoins negatively affect the price growth of the original version of bitcoin.

Personal ownership or holding of bitcoins in non-trust wallets is introduced as a way to reduce investors’ dependence on centralized exchanges and corporate bonds (investment fund shares).

The President of El Salvador, Najib Abuquila, announced a while ago that this country will buy one bitcoin every day from November 17. The public reports of the government of El Salvador also show that this country currently has 2,381 units of bitcoins and the average purchase price of these bitcoins is $43,457. In fact, the current market situation has provided an opportunity for this country to significantly reduce its average purchase price.

Leave a Reply

Your email address will not be published.