Despite the plummeting price, most Bitcoin investors lost less than $ 200

Source: LongHash

The recent wave of bitcoin price crashes may worry many investors. But when we consider Bitcoin as an investment, what exactly does this decline mean? To explore the answer, we studied the historical trend of Bitcoin price.

As of the time of this writing, the price of Bitcoin is $ 7,122.28. This is much lower than the price a few weeks ago, but according to historical data on Coinbase, this price is still higher than the historical closing price of almost 410 days in the Bitcoin life cycle.

It has been 3978 days since the birth of Bitcoin on January 3, 2009, and November 5, 2019, so Bitcoin has only 410 days as a bad investment asset sounds like a good thing. After all, 3568 days out of 3978 days since its birth was a good investment. That's almost 90% of the total number of days it's been there!

On the other hand, the 410 "loss" days-the days when the Bitcoin closing price was lower than the price at the time of writing-were also on the rise. As of July this year, Bitcoin has only been a bad investment for 60 days. Now that number has increased almost sevenfold.

Unfortunately, based on the price at the writing date, although Bitcoin is a good investment 90% of the time so far, this does not mean that 90% of Bitcoin holders can pass Bitcoin. Investment returns. Compared to the early days, there are many more people who have only bought Bitcoin recently. Due to the recent rise in the price of Bitcoin, most recent buyers are more likely to be losing money.

In fact, 2019 is a particularly cruel year for bitcoin buyers-out of 329 days so far this year (as of November 25, 2019), Bitcoin has had 190 days as a bad investment. In other words, so far, about 58% of 2019, Bitcoin's closing price was lower than the price on November 25.

The worst year in 2018 is closely followed, with 167 days out of 365 days, people who buy bitcoin may lose money. There were 53 "loss" days in 2017. (Investors who bought Bitcoin before 2017 are still profitable; there will be no "loss" days before 2017).

How many people are losing money at the current price? According to crypto data company Into The Block, if sold on November 25th, 56% of Bitcoin holders will still be profitable, 8% will generally not make any money, and the remaining 36% will Loss. This estimate is based on the Bitcoin price at the time of writing and the average purchase price of the tokens held in the Bitcoin wallet.

According to Blockchain.com, there are currently more than 43 million Bitcoin wallets. According to data from Into the Block, there are currently more than 15.7 million wallets with tokens below their purchase cost price. Of course, many Bitcoin wallets are no longer active or lost, and many have multiple wallets, so the true number of actual investors who are currently losing money is almost certainly much lower.

Although millions of wallets may be affected, there will be no serious losses for most investors. In 410 "loss" days, the median difference between the higher "buy" price and the current lower "sell" price was just over $ 2,000.

But the wallet owner must hold at least 1 BTC to generate so many losses. According to BitInfoCharts data, among all Bitcoin wallets, more than 90% of wallet accounts have only 0.1 or even less BTC. As a result, most investors may lose less than $ 200. Of course, these losses will only hold true if the holder sells Bitcoin at the price given in this article.

Of course, whether this reflects a trend or a temporary phenomenon depends on where the price of Bitcoin is going next. None of these numbers are static; if the price of Bitcoin rebounds to $ 8,000, the number of "loss" days will be reduced to more than 300. If it can climb above $ 10,000 again, the "loss" days will be further reduced to around 150 days.

LongHash , read the blockchain with data.