The number of unique bitcoin addresses increased significantly in October. The increase in the number of addresses started at the beginning of October and it does not seem to stop for the time being.
The well-known analyst Willy Woo describes a unique bitcoin address as an address with a balance above 0 satoshi. Addresses on Bitcoin Rush centralised exchanges are not included in his chart. This is purely about users on the bitcoin blockchain.
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Bitcoin use grows after influx of large batches
According to Woo, it was mainly large parties such as Square that created a new wave of users with their bitcoin purchase. PayPal’s choice to offer bitcoin on the platform has not been a bad advertisement for bitcoin either.
Despite the fact that hardcore bitcoiners do not like parties like PayPal, a party of that order of magnitude can introduce many people to bitcoin for the first time. And that, of course, is never wrong. Often an investment is the best way to get into the rabbit hole.
By the way, bitcoin at PayPal cannot be removed from the platform. But the platform has to buy bitcoin to facilitate trade on their platform.
Square’s message with their $50 million bitcoin purchase also helped. CFO Amrita Ahuja called the investment a step forward in their mission to build products that provide a more inclusive financial system.
Increased number of unique bitcoin addresses and increased price is a strong combination.
There are several ways of assessing the health of the Bitcoin network. You can look at the hash rate, the number of unique addresses and, for example, the daily transaction volume.
If these are all in the green, it means that a broad group of people have confidence in the future of bitcoin. This, together with the price increase in recent weeks, is very positive for us.
In our opinion, there is no better justification for a price increase than an increase in the number of users. The more bitcoiners, the more the story of bitcoin will spread.