Another sleeping wallet activation just happened. After more than eight years of dormancy, the wallet contains a total of 616 Bitcoin.
Before it got deactivated, this price was equivalent to less than 7,000 dollars.
Currently, the market price for those Bitcoins is over $29,000,000.
Some crypto enthusiasts believe that this might lead to a crash. They claim the owners of these wallets might sell their tokens with the hope of buying them later at a lower price. Consequently, the market depends on them.
This year, other inactive Bitcoin address activations have occurred. Activation of one sleeping wallet containing 719 Bitcoins occurred in July, and some believed it belonged to Satoshi Nakamoto.
This is because Satoshi disappeared around the time of deactivation. Exactly nine years ago.
Others, however, claim it was just a holder who remembered their password. Whoever owned the wallet got lucky as the price multiplied from just 10,000 US dollars to 26 million USD.
Other wallet activations happened in March and February. They contained 5000 Bitcoins and close to 2000BTC respectively.
BTC Market Collapses
On Saturday last week, Bitcoin reached a peak of $48,700. Currently, the Crypto has collapsed by over 9% and hit $44,436.
In recent weeks, BTC has depicted a downward trend.
This followed El Salvador’s announcement to use the Crypto as a mode of payment together with the US dollar.
What is Bitcoin?
Created in 2009, Bitcoin is a digital currency with a decentralized system that users can buy, sell or even exchange.
The BTC crypto uses peer-to-peer technology that doesn’t rely on banks. Countries like El Salvador (which was the first) have even adopted it as a mode of payment.
Crypto exchange platforms like Coinbase allow the buying and selling of BTC to occur. Bitcoins creation happens through a process called mining.
Users can transfer Bitcoin using Mobile apps and computers. The same way money gets transferred virtually.
To store Bitcoin, you will require a digital wallet. Other than purchasing and selling BTC, holders can save their cash and pay for goods and services.
Many users prefer Bitcoin because of the anonymous data. The transactions are public, but the names of users are never exposed.
Advantages of investing in Bitcoin
- Liquidity: at very low fees, one can exchange Bitcoin for cash or other assets, including gold. BTC has high liquidity hence preferred for holders looking for short-term investments.
- Lower inflation risk- Bitcoin has immunity from inflation compared to global currencies.
- Minimal trading- using Bitcoin is as simple as buying the tokens and storing them in your wallet.
BTC Crypto also has a few disadvantages, including; volatility( the price keeps moving back and forth) and the threat of online hacking.
Hacking is a risk, but people can avoid this if they take charge of their private keys with wallets like Coinbase.
Conclusion
In summary, the coin is struggling to get back to the 50000-dollar mark. Will we see a quicker recovery? Stay with us to get notified.