ZUBR’s study reveals that Bitcoin’s new market supply will not meet future demand

By 8

Digital assets derivatives exchange ZUBR has released a report on the international holding of Bitcoin, stating that daily demand for the cryptocurrency will increase exponentially against the new market supply of bitcoins mined after 2028 if the current investment trends continue. The company used Chainalysis’ data for analysing growth in wallet addresses that could be viewed as ‘intentional holdings’.

Ilgar Alekperov, CEO, ZUBR said, “At the current steady rate that retail is accumulating Bitcoin, the new market supply will not be enough to address retail demand, let alone institutional investor demand. Although Bitcoin is still emerging when compared to traditional commodities such as gold, this research proves that there is a growing belief in Bitcoin’s long-term investment case as a real store-of-value. It’s fair to say, that it’s this continued belief which could ultimately see it become a reality.”

The company’s research shows that precise rounded addresses have grown by 11% since the start of 2020. It states that with the supply limits currently known, new Bitcoin through the mining reward might become fully absorbed by retail investors unless price heavily weighs-in over the coming years. The addresses only account for 2.5% of the total circulating supply.

Ilgar continued, “While ZUBR focuses on the institutional market, it’s really important that we look and reflect at the retail trends as crypto is still a retail-led market, and this will ultimately dictate investor appetites and behaviour.”