Researchers Chart BTC holding Periods Called ‘Hodl Waves’

Researchers Chart BTC holding Periods Called 'Hodl Waves'

This week Dhruv Bansal the co-founder of Unchained Capital, a cryptocurrency based financial services lending firm released a research study called ‘Bitcoin Data Science: Hodl Waves’ part one. Bansal and his team analyzed the BTC network’s ledger of Unspent Transaction Outputs (UTXO) over a few years and discovered how when BTC lost a large share of value transactions occurred less because of new investors and distinct holding periods materializing. 

Also Read: Indian Exchange Takes Central Bank to Court Over Bank Ban

Unchained Capital’s ‘Hodl Wave’ Research

The cash to crypto lending service Unchained Capital had analyzed the Bitcoin core (BTC) blockchain and the network’s UTXOs a few years ago and decided to publish the firm’s data. Blockchains use a ledger mechanism called Unspent Transaction Outputs or UTXOs and this data is timestamped. This means blockchain researchers can figure out when UTXOs were last used in a transaction which has given the company a rich set of data throughout the years.

Unchained Capital created a colored coded chart which calculates waves of age distribution within the digital currency’s UTXOs and their age distribution set back to the genesis block in 2009.

“This chart is fascinating because it displays the macroscopic shifts that have occurred in bitcoin’s ownership through history. Spikes in the bottom, warmer-colored age bands (<1 day, 1 day — 1 week, 1 week — 1 month) indicate large amounts of bitcoin suddenly transacting,” explains Unchained Capital’s research. “The steady growth of the top, color-colored age bands (2–3 years, 3–5 years, >5 years) shows bitcoin that’s not being transacted with, idling between rallies — The interaction between these two patterns illustrates the behavior of bitcoin’s investors during market cycles.”

It is not possible to make charts such as the one above for traditional asset classes. It’s only bitcoin and other public blockchains that meticulously track these data throughout their whole histories. This enables post-hoc analyses of large-scale market behavior.

Researchers Chart BTC holding Periods Called 'Hodl Waves'
This image from Unchained Capital’s research shows UTXO age distribution with price peaks labeled. The white lines are ‘Hodl Waves’ which starts a new aging period.

Essentially, Bansal and his team found a pattern after every rally that they call the ‘Hodl Waves.’ Unchained Capital says basically the wave is created when a large amount of BTC transacts towards market price spikes, and then the UTXOs age with new owners. The firm’s chart shows a visual depiction of waves forming distinct patterns of curves. “[The] pattern of nested curves caused by each age band becoming suddenly much fatter (taller) at progressively later times from the rally,” Bansal states.

The Genesis Wave to the Largest Wave in Blockchain History

The first wave began during the Genesis period between January 2009 through June 2011, when the price was 0-$33 USD per coin. Unchained Capital says this wave was not caused by a price rally, but because BTC had no significant value at the time. Early adopters and Satoshi held on to their coins, because they were not worth much for a good period of time.

Researchers Chart BTC holding Periods Called 'Hodl Waves'
The Genesis wave is the shortest wave in history.

The next wave began between June 2011 ($33) to the December rally of 2013 ($1K).

“Right after the rally to $1k, more than 60% of BTC had been spent within the last 12 months. This was the most “recent” moment for BTC’s money supply in history — the moment at which the average last time of use of a Bitcoin was lowest,” explains the study. “Who sold? Once more, it was the investors who purchased in the prior 2–3 years, through the $33 peak and the $198 peak.”

Researchers Chart BTC holding Periods Called 'Hodl Waves'
Unchained Capital calls this wave the ‘Great Hodl’ of 2014.

The largest ‘Hodl Wave’ was between the 2013 rally at $1K, all the way to December of 2017 spike past $19K. Last year when BTC jumped to $1K per coin, close to 60 percent of BTC was older than twelve months. One year later during the $19K top, only 40 percent of BTC was older than a year. “During 2017, 20% of bitcoin in existence was transacted with for the first time in years,” explains the company. The researchers believe the three main reasons for this effect was due to the Bitcoin Cash hard fork and Segregated Witness soft fork, initial coin offerings (ICOs), and capturing gains.  

At the moment after the big spike and following ‘Crypto Winter’ a new wave is forming which shows BTC fractions older than 12 months have dropped to 40 percent.

“After every great rally, there’s been a great Hodl. As the data shows us, there is already the development of another generation of holders settling in for the long haul,” Bansal concludes.  

Beginning in January 2018, the category of bitcoin that are 6–12 months old rebounded from a low of 7.76% to 14.63%, a doubling of its population.

Bansal and the research teams’ study has an interactive chart which shows a far more in-depth look at these waves. The Unchained Capital’s research paper can be found in its entirety here.  

What do you think about the ‘Hodl Wave’ research done by Unchained Capital? Do you find statistics like these interesting? Let us know your thoughts in the comments below.


Pictures via Shutterstock, and Unchained Capital’s research study images.  


Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics.

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250 Corporates Join ICICI’s Trade Finance Blockchain Platform

Indian banking giant ICICI, the country’s second-largest private bank, has roped in 250 corporates to conduct both domestic and international trade finance transactions on its ‘custom-made’ blockchain platform. In a major pivot that underlines the growing confidence in decentralized blockchain technology, ICICI bank has pointed to corporate firms and giants undertaking various types of transactions

The post 250 Corporates Join ICICI’s Trade Finance Blockchain Platform appeared first on CCN

PR: AI – Based Bibox Digital Asset Exchange Platform Hits 50,000 Active Users per Day in Five Months

AI - Based Bibox Digital Asset Exchange Platform Hits 50,000 Active Users per Day

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

Tallinn, Estonia, April 19, 2018 – Having attracted half a million traders in just five months with an average of 50,000 active users per day, AI-based digital asset exchange platform Bibox today announced average per day trades of US$100 million.

With a super-secure trading platform that applies the latest in big data analytics and AI technology to detect trading anomalies that pose risks in real-time, Bibox has seen a user growth rate of more than 300% per month. Bibox provides functions for professional traders that include Planned, Conditional, Iceberg, TWAP, Stop Loss/Gain orders.

Underpinned by blockchain and proprietary algorithms, Bibox’s supports more than 35 tokens and 112 trading pairs, including Bitcoin, Ethereum and Tether, with AI selecting listings for new tokens on Bibox Digital Exchange Platform based on merit. Bibox adopts and end-to-end approach to AI-based security that includes monitoring functions and alerts for suspicious activity.

Given its transparency and security credentials, CEO Jeffrey Lei wants to extend secure trading beyond crypto geeks, and develop a platform that is accessible to everyone, “Eventually users with different risk tolerance capabilities will have different access to trading services and fees according to their identity.”

At present, Bibox can handle more than 10 million users at the same time and 1 million transactions per second.

For more information please visit official website Bibox, subscribe to Bibox official accounts in Twitter; Reddit; and Medium.

Contact Email Address
media_release@bibox365.com
Supporting Link
https://www.bibox.com/

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Bitcoin in Brief Thursday: ICO Scares Investors with Ghost Prank

Bitcoin in Brief Thursday: Another ICO Ghosts with $50 Million - Sends Thanx from Beer Beach

Today we’ve simply given-in to no nutritional value, guilty pleasure, lowest common denominator: bitcoin-related crime news. Start your day with laughs and head scratching, as we examine the purported Savedroid ICO exit scam, an international bitcoin heist escape, the fury of a scorned woman, a bear spray robbery, and some whole food violence.  

Also read: Bitcoin in Brief Wednesday: Pornhub? We’ve Never Heard of Pornhub

Savedroid Appeared to Ghost With Investors’ Money

This can’t be real, right? This must be a publicity gimmick. Well, in any event, German online news source Wirtschafts Woche documents how Savedroid has apparently taken the money and run. The company website was replaced with a meme picture, “Aannnd it’s gone.” Founder and CEO Yassin Hankir tweeted a picture of himself on a beach, long gone. All this after having raised $50 million in an ICO.

Bitcoin in Brief Thursday: Another ICO Ghosts with $50 Million - Sends Thanx from Beer Beach
Savedroid webpage

Promises of artificial intelligence, curated portfolios, and a native credit card proved too much for investors, and they poured in money. Stranger than fiction.

Bitcoin in Brief Thursday: Savedroid Scams Investors for $50 Million

Reads Like a Movie Script

A suspect involved in an Icelandic heist involving a dozen perpetrators, 600 missing bitcoin mining rigs, was able to evade authorities after they’d managed to arrest him. “Sindri Thor Stefansson” the BBC reported, “escaped the low-security prison through a window and fled to Sweden on a passenger plane that was also carrying Iceland’s prime minister, local media report. The ticket had another man’s name and he was identified through CCTV video. The stolen computers, which are still missing, are worth $2m (£1.45m).” It appears Mrs. Stefansson was also arrested, but he didn’t have time to circle back evidently.

Bitcoin in Brief Thursday: Savedroid Scams Investors for $50 Million
Sindri Thor Stefansson

Hell Hath No Fury

Speaking of angry women, the broader ecosystem has been accused as being too male. Well, here’s Tina Jones breaking through the digital glass ceiling. According to WGN, Ms. Jones was  “charged after allegedly paying thousands of dollars via bitcoin to a company on the dark web to murder the wife of a man she had an affair with, according to officials. Tina Jones, 31, appeared at bond court Wednesday morning where a judge set bond at $250,000. She was charged with one felony count of solicitation of murder-for-hire.”

Bitcoin in Brief Thursday: Savedroid Scams Investors for $50 Million
Tina Jones

Bearly Escaped with Bitcoin ATM

The Irving Patch, a Texas local online news source, are attempting to help police find two men. Police claim they “entered a store […]  and sprayed a clerk with bear spray before making off with cash from a Bitcoin machine …. They can be seen in security footage spraying the store clerk with bear spray, a powerful form of pepper spray, before heading to the back of the store where the Bitcoin machine was located ….The clerk was taken to a hospital for treatment after being sprayed but was later released.”

Well, He Warned Him

Government crackdown on legitimate cryptocurrency exchanges usually receive very positive media coverage. What both government and mainstream media often miss is how less online exchanges necessarily means more face-to-face encounters, which can be dangerous for reasons bitcoin traders are well familiar. Case in point: a Miami man wished to turn $30,000 cash into more than that in bitcoin. He met supposed crypto dealers at a public place, a local Whole Foods parking lot. The fellow with the cash brought a gun just in case something went wrong. Turned out to be a pretty good idea. He was jumped for the money, and as he was attacked, yelled to his attacker, “Back off, I have a weapon,” the Miami Herald details. The attacker didn’t listen, and was shot. He was later arrested after being taken to a local hospital.

Bitcoin in Brief Thursday: Savedroid Scams Investors for $50 Million

Bitcoiners Wanted at Citi

A recent now hiring Linkedin post detailed how Citi is looking for a  “Senior Vice President, Senior AML Compliance Officer —Emerging Risk,” in Tampa, Florida. “Knowledge of cryptocurrency and bitcoin monitoring” and “Certified Bitcoin Professional Certification a plus,” are among the job qualifications and requirements.

More Spring Cleaning

Clearing off some smaller stories, Riot Blockchain has been subpoenaed.  The Securities and Exchange Commission of the Philippines issued a rather blunt warning about what it terms bitcoin “schemes” to defraud investors. It lists more than a dozen companies by name, and proceeds to go through steps to identify future scams. Josh Ellithorpe tweeted how he “Just released my first open source project at Coinbase. If you need Cashaddr support for your Ruby app then you should check it out!” here.  

Do you think Savedroid really scammed its investors? Let us know in the comments section below.


Images courtesy of Shutterstock. Special thanks to Kai Sedgwick and Avi Mizrahi for sourcing.


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Majority of US States Have Taken a Stance on Bitcoin and Blockchain

Majority of US States with Stance on Bitcoin and Blockchain

Most US states have adopted some regulatory stance in regards to cryptocurrencies like bitcoin and the blockchain technologies behind them, according to a report by the Brookings Institution. The study classifies jurisdictions according to their attitude towards digital currencies and the levels of engagement with the underlying technology.

Also read: Several States Spearhead Bitcoin Adoption in the U.S.

Two Waves of Regulations in Four Years

State governments are at various stages of implementation of crypto and blockchain technologies. Some of them have not yet introduced regulatory regimes to take full advantage of them. Most, however, have shown interest in leveraging these technologies to stimulate local economies and improve public services. The authors have identified two waves of new crypto-related regulations in the last several years.

The first wave started in 2014, with more than 20 states adopting relevant legislation. At that first stage, authorities in at least 10 states, like California and New Mexico, issued warnings about investing in cryptocurrencies. The second one came in the last two years when a large group of states started exploring the potential implementation of blockchain technologies in the public and the private sector.

Majority of US States with Stance on Bitcoin and BlockchainOne of these states is Colorado, where a cautionary approach has led to the adoption of a bipartisan bill promoting the use of blockchain for government record keeping. Wyoming has been mentioned as a state seeking broader impact on the state economy. Recently, its legislature passed a bill exempting cryptocurrencies from property taxation, as news.Bitcoin.com reported. The state has been praised for becoming the most crypto-friendly jurisdiction in the country.

Two other states have taken steps to legalize bitcoin as a payment option for taxation purposes. Arizona has promised to become the first US state to start accepting taxes in cryptocurrency. Several bills recognizing cryptos as currencies have been making their way in the state legislature. Two of them regulate income tax payments with cryptos. Georgia may also provide its residents with the option to pay taxes in bitcoin. A draft that allows digital currency payments for tax obligations and licensure fees has been filed in the senate.

Many state legislatures have introduced regulations mostly clarifying matters related to the exchange of cryptocurrencies and the application of existing money transmission laws. Nevertheless, the majority of US states have taken at least some form of regulatory stance concerning cryptocurrencies and the blockchain technology, as the researchers point out.

From “Unaware” to “Recognizing Innovation”

The report, titled “Blockchain and US State Governments: An Initial Assessment”, classifies US jurisdictions according to their attitude towards cryptocurrencies and the levels of engagement with the blockchain technology. The authors have divided states into several groups – Unaware, Reactionary, Appreciative, Organized, Actively Engaged, and Recognizing Innovation Potential.

The first group consists of states which have not taken any actions to adopt relevant regulations, such as Arkansas and South Dakota. The document notes, however, that in some of these “unaware” states there are substantial crypto-related activities within the private sector and the academia. States that have taken a negative stand against cryptocurrencies or have flagged them as potentially risky are considered “reactionary”. These include Indiana, Iowa, and Texas.

Majority of US States with Stance on Bitcoin and Blockchain

North Dakota is among the “appreciative” states, as its government has already initiated a legislative process but has not adopted any new bills yet. “Organized” states like Washington and New Hampshire have already passed new laws concerning the crypto ecosphere.

Seven states are included in a group called “Active Engagement”. According to the Brookings Institution, they have gone beyond cryptocurrencies and examined the governmental use of blockchain. The authors are talking about both isolated applications and integration across different government functions. A good example is Vermont where blockchain-stored data is recognized and accepted by the court system.

Several other states “envision a broader role for blockchain in their economies”. These are states like Delaware, hosting many Fortune 500 companies and numerous startups, and Illinois, which aims to utilize distributed ledger technologies to “redefine the relationship between government and citizens”. Arizona, where signatures, transactions, and contracts on a blockchain are legally valid, also falls in the category of states “recognizing the innovation potential” of crypto technology.

Do you agree that most US states will probably accept and regulate cryptocurrencies and blockchain technologies before they are legalized on a federal level? Tells us in the comments section below.   


Images courtesy of Shutterstock, Brookings.


Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics.

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