Bitcoin, the actual distribution volume
According to an index released by CoinMetrics, which analyzes cryptocurrencies, the actual circulation volume of Bitcoin will be about 14.5 million BTC. On the other hand, the benchmark site says that it is about 18.6 million (circulating supply).
It is widely understood that whilst there are 18.6m #Bitcoin in existence, many are lost and not available to the market anymore.
— CoinMetrics.io (@coinmetrics) February 5, 2021
The “free float supply” index is used to find out the actual distribution volume of Bitcoin, and the number of issued Bitcoins that have been lost for some reason can be confirmed on the blockchain using alternative numbers (about 18.6 million BTC). ) Is subtracted.
Lost (inaccessible) Bitcoin can be caused by a variety of causes, including the loss of the private key and the death of the holder, especially in the early days when Bitcoin was not as valuable as it is today. It is believed that there are also many Bitcoins.
The detailed approach of CoinMetrics is as follows. From the distribution volume that can be confirmed on the ledger, the tokens held by the founders, tokens that have not been moved for 5 years, besting tokens, burned tokens, and lost tokens are subtracted. This formula applies to almost all brands, not just Bitcoin.
As a result of the calculation, the current distribution volume was calculated to be about 14.5 million BTC, and it was explained that about 3.9 million BTC may be lost.
Regarding Bitcoin, it is considered that there is no so-called founder and there are no intentionally burned tokens. Bitcoin that has not been moved for more than 5 years may include a wallet for long-term investment purposes.
Relation:Bitcoin that has been sleeping for 10 years moves
Also affects market capitalization
If the distribution volume is different, the index calculated based on the distribution volume may also be different. The market capitalization of Bitcoin is about $ 691.0 billion as a general index, but it will be reduced to about $ 538 billion (56.8 trillion yen) when using the temporary free float supply.
CoinMetrics also pointed out that there will be differences in the distribution volume of Bitcoin forked stocks. That’s because the token that hasn’t been moved since the fork is further subtracted from the above formula.
Market capitalization is a major and frequently cited indicator, so keeping track of the quantity of lost Bitcoin and other stocks will continue to be a topic of constant debate.