Sorry, Satoshi Nakamoto, we have failed you. On-chain data suggests Bitcoin is no longer being used as electronic cash. Most users see it as an equivalent of 'digital gold'.

According to CryptoQuant founder Ki Young Jum, Bitcoin’s circulation has recently slowed down. The velocity of the token, which shows how is the crypto circulating the market, speaks for itself. Most of the Bitcoin on the market spend time sitting tightly in the wallets of their owners.

There was a time when Bitcoin velocity kept rising. For instance, during the 2021 bull run. So it seemed as if Satoshi Nakamoto was right in his predictions. The peak of that velocity was reached in the middle of 2022. it coincided with the flourishinf of the bear market.

But since then Bitcoin velocity has been only falling, Ki Young Jum states.

As of now, the velocity indicator has reached its lowest for the last 13 years. In other words, today's BTC circulation rate is the same as in 2011. Back then no one basically knew what Bitcoin was. Nowadays, it is considered as one of the most promising financial instruments.

Yet, nobody is actually using it.

Seems like people have forgotten what Satoshi created Bitcoin for. We see is as an asset rather than a decentralized currency for everyday use. Yes, Satoshi's vision was simple. Bitcoin was originally meant to be cash in electronic form that works peer-to-peer. That would eliminate the need for any central entity like banks.

But what we see is suggesting Bitcoin missed the target completely. Instead of becoming 'digital cash' it has become 'digital gold'. That implies no frequent transactions and erevyday use for most of the users.

Some analysts say that the arrival of institutional investors to the scene this year is going to finalize this transition. Bitcoin ETFs will suck in a significant portion of existing BTC eventually. As well as companies like Michael Saylor's MicroStrategy that keep buying Bitcoin only to hold it for a long period of time.