New Bitcoin Users Activity Spikes To New All-Time Highs, What Does It Mean?

News BTC

The new Bitcoin users graph is a sight to behold. Even though Bitcoin’s price was horizontal for a while there, the network kept growing. And, with each new participant, the network expands infinitely. And, with that, the value of the network increases in the same magnitude. Such is the nature of the “network effect” phenomenon. 

That is what this chart by on-chain analyst Will Clemente shows:

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

As one of the hosts from the Alt-Coin Daily show said, “The traders control the short-term market.” However, if we’re talking long-term, this is one of the most bullish charts you’re going to see. And, luckily for us, Clemente himself explained the chart’s nuances on said YouTube show. 

How To Get Free Crypto  

Related Reading | TA: Bitcoin Regains Strength, Why Bulls Eye Strong Rally above $40K

The Whales Are Distributing Their Coins

According to Investopedia, the Gini coefficient is:

Get 110 USDT Futures Bonus for FREE!

The Gini index, or Gini coefficient, is a measure of the distribution of income across a population developed by the Italian statistician Corrado Gini in 1912. It is often used as a gauge of economic inequality, measuring income distribution or, less commonly, wealth distribution among a population. 

Bitcoin’s Gini coefficient is getting healthier and healthier. According to William Clemente, when you filter out ETFs and Grayscale, on-chain analytics show that “over time whales are just distributing their coins.” According to him, entities with less than 10 BTC never stop buying. “Since May 19th, retail has been accumulating more heavily than the whales have.” Each day that passes, Bitcoin’s “healthy distribution of the network” gets better and better.

New Bitcoin Users, A Very Appealing-Looking Chart

According to Clemente, his “very appealing looking chart” shows “the net users growth of the network.” His methodology is simple. He looks for “clusters of addresses that look like one person,” those are the entities. Then, he subtracts “the amount of new entities coming on-chain” from “the entities that look like they’re dormant.” The result is the daily new Bitcoin users.

As the chart clearly shows, we recently achieved an all-time high in new Bitcoin users per day. However, there’s more. According to Clemente, the story is in the “incremental increase between each mayor peak.” At the peak of 2011, 1050 new users came into the network per day. In the two 2013 peaks, the number went from 1500 to about 5000 a day. In 2017’s best moment, Bitcoin was bringing in 40000 new Bitcoin users a day.

Related Reading | Bitcoin Set To Outperform In Second Half Of 2021, Bloomberg Analyst

All of those peaks had a dramatic drop back down. If we look at 2021, in general, it’s a “slow grind higher.” So, “If this is the peak, we haven’t seen this drop-off in new user growth that we had each cycle.” On the contrary, “we just crossed the all-time high of 2017.” If Clemente is right, those new Bitcoin users mean we’re nowhere near the top.

Coinbase Banner  

BTC price chart for 08/06/2021 on Bitstamp | Source: BTC/USD on TradingView.com

What Do The Greats Say About Bitcoin’s Users?

The legend states that once upon a time legendary investor Paul Tudor Jones asked Stan Druckenmiller:

“Do you know that when Bitcoin went from $17,000 to $3000 that 86% of the people that owned it at $17,000, never sold it?” Druckenmiller replied: Well, this was huge in my mind. So here’s something w/ a finite supply & 86% of the owners are religious zealots.

Will the new Bitcoin users act the same way when the season of the bear arrives? Only time will tell.

Featured Images by History in HD on Unsplash - Charts by TradingView

Go to Source
Author: Eduardo Próspero


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.