A new study by River Intelligence suggests that $BTC is still in its early adoption phase—comparable to the Internet in 1990 or social media in 2005. While there’s been significant growth, there’s still a long way to go.

Key Findings from the Study

  • Adoption is Just Beginning: Despite the hype, Bitcoin is only at 3% of its full potential. Just 4% of the global population owns BTC, and institutional adoption remains limited.

  • Government Interest is Rising: By 2024, 18 countries owned Bitcoin through various means, and more nations are introducing crypto-friendly policies.

  • Bitcoin’s Value as a Store of Wealth: In 2024, Bitcoin’s transaction volume hit $3.43 trillion, with an average transaction size of $17.8K.

  • Scarcity Drives Value: Bitcoin’s supply is growing slower than fiat currencies and gold, reinforcing its reputation as “digital gold.”

  • Who Owns Bitcoin? Individuals hold nearly 70% of BTC, while companies and funds own about 10.5%. Governments hold only 1.4%.

  • Lost & Locked BTC: Around 13% of Bitcoin’s total supply is considered lost or locked due to forgotten keys, smart contracts, or bankruptcies.

Bitcoin Custody & Security

  • Crypto Exchanges Losing Market Share: The share of BTC held on exchanges dropped from 70% (2021-2023) to 56.6% in 2024. ETFs and DeFi platforms now hold a third of all BTC.

  • Security Improvements: Post-FTX collapse, Proof of Reserves has become an industry standard, reducing exchange-related losses.

Decentralization & Mining

  • More Nodes, Higher Hashrate: Bitcoin’s network is becoming more decentralized, with increasing active nodes and mining power.

  • Mining Pool Concerns: Three mining pools control 60% of Bitcoin’s total hashrate, raising concerns about centralization.

  • Top Mining Countries: The U.S. (36%), Russia (16%), and China (14%) lead Bitcoin mining, with Russia’s presence growing as its pro-crypto stance strengthens.

Lightning Network: Slower Growth

  • Merchant Adoption is Key: Too few businesses accept Bitcoin, limiting the need for Lightning Network transactions.

  • Low Fees, Low Demand: BTC transaction fees are still relatively low. If fees rise, demand for Lightning Network will increase.

What’s Next?

The study suggests that Bitcoin is still in its infancy, with huge potential ahead. As more governments, institutions, and individuals embrace BTC, we could see Bitcoin adoption mirror the rapid growth of the Internet in the coming years.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions.

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