Demand for bitcoin

Question

Is it true that bitcoin demand depends on average value of addresses balance?

A - sum of all Bitcoins (Satoshi)

B - addresses with non-zero balance

C = A/B

I mean if raise C so demand gets down and vice versa.

I view some statistics and it is correlated.

Added. How does the people who work for Bitcoin Core get paid?

Those who work for increasing of security and those who are enjoy transparency are involved in proof-of-work. So this system balanced until balanced this two sides.

score 1 · Answer 1 · answered Nov 07 '17 at 06:07

1

No.

Because an individual can spend more than 1 address.

Therefore your formulation is not an accurate depiction of activity or demand for bitcoin.

answered Nov 07 '17 at 06:07

rny

2,418
1
15
26

The more keys you need, the more reliable protection. – Denis Leonov Nov 07 '17 at 06:11
That is not necessarily true too. It's highly dependent on how you store them! – rny Nov 07 '17 at 06:12
you mean 'where'? you mean that AES more weak then Elliptic Curves Math? – Denis Leonov Nov 16 '17 at 22:39
It is both where and how. I don't understand how you came up with the 2nd phrase. – rny Nov 16 '17 at 22:40

score 0 · Accepted Answer · answered Nov 07 '17 at 09:18

Well there is a relation but it is not exactly C = A/B.

Since one individual can create any amount of addresses and send small amounts of BTC to them. B will increase and there by decrease C. The demand is this as high.

Although if you all 16m BTC was distributed on 16,000 addressed with average of 1000 BTC/address. The demand of bitcoin wouldn't be as high compared to if you had 16,000,000 addressed with 1 BTC/address(as long as they one person doesn't have 15,000,000 addressed by himself). The demand is more correlated to the user base. Imagine what would happend if you distributed all BTC around the world and everyone had the same amount. You wouldn't just sell your share or your vote for fiat that fast.

Demand for bitcoin

2 Answers2