The recent plunge in Bitcoin prices is bad news for Bitcoin and miners. However, despite the decline in the price of Bitcoin, the Bitcoin network continues to grow. Here are seven ways to tell you how the Bitcoin network has achieved strong growth.
(Image source: Pixabay)
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More trading volume
In the long run, Bitcoin's transaction volume continues to grow. Since the beginning of this year, the daily trading volume of Bitcoin has increased from 295,000 to a recent high of 340,000.
Bitcoin network transaction volume continues to grow. Image: Blockchain
The market crash caused by the sudden decline of the traditional market has amplified in the cryptocurrency market, and Bitcoin has recently faced huge selling pressure.
Although the transaction volume of the bitcoin network has declined in the past few days, it can be seen from the total time chart that every time the historical transaction volume of bitcoin drops significantly, it will slowly rise and even reach a new high.
More efficient Bitcoin transactions
During the market slump, the transaction volume of the Bitcoin network reached its peak, and the cryptocurrency exchange Coinbase found it difficult to meet the transaction needs of customers. Therefore, it started using batching technology. Batch processing is the process of combining many transactions into a more complex transaction, which reduces the pressure on the Bitcoin network.
According to one analyst, this may explain the recent decline in bitcoin transaction volume. In addition, batch transactions can make transactions faster and cheaper.
According to Blockchain, since the beginning of this year, funds flowing in the Bitcoin network (in USD terms) have been growing. On March 15, the total daily transaction volume of the Bitcoin network increased from a low of $ 640 million to a recent high of $ 1.9 million, an increase of 200%.
More funds are being transferred through the Bitcoin blockchain. Image: Blockchain
Bitcoin mining machine demand is stable
Bitcoin mining is currently in a difficult situation. Bitcoin's hash rate is a kind of computing power that guarantees the security of the network. As the currency price drops and mining profits decrease, some miners leave the network, and the hash rate of Bitcoin also starts to decline. In addition, the upcoming halving of bitcoin will result in halving miner income, which could make things worse.
Still, demand for Bitcoin mining machines is still high. On March 23, the mining machine giant Bitmain announced the sale of its latest ant mining machine S19, and the first shipment was sold out within a few hours.
The number of Bitcoin wallets is also growing
Despite the new crown pandemic and the plummeting price of coins, the number of bitcoin wallets is still steadily increasing, suggesting that people continue to join the network.
There are more Bitcoin wallets than ever before. Image: Blokchain
Since January this year, coin holders have created about 3 million wallets on the network. The total number of all Bitcoin wallets on the entire network is 47 million.
A new wallet does not necessarily represent a new user. It's easy for anyone to create a new wallet (a well-known public address) or hundreds of wallets at once. Bitcoin exchanges often do this, and every time a user recharges the exchange, a new recharge address is created.
But this data still shows that the acceptance and usage of the Bitcoin network is still growing.
Surge in transaction volume
Bitcoin's transaction volume reflects exactly how many people are buying and selling this cryptocurrency. This data has improved in recent weeks.
According to Blockchain data, Bitcoin's transaction volume surged in mid-March, reaching around $ 685 million per day.
Bitcoin's transaction volume has increased. Image: Blockchain
Not only the large exchanges, but also the bitcoin trading volume on the peer-to-peer trading platform LocalBitcoins has recently experienced its largest surge since this year. As of the end of February, the daily trading volume of Bitcoin on the platform was about 491. By mid-March, that number had increased to 540 bitcoins, which is equivalent to $ 3.6 million.
The same situation can be seen all over the world. During the new crown virus outbreak, Venezuela's entire national banking system was shut down, and since then the country's bitcoin trading has soared. In Colombia, bitcoin transaction volume increased from 289 to 403 bitcoins in just one week during the new crown epidemic, the highest transaction volume in the country since June 2019. In Argentina, Bitcoin's transaction volume has broken through the important level of 50 per week, and this level has not appeared more than 10 times in the past three years.
Google searches for Bitcoin peak
Bitcoin's price may have fallen, but its Google search volume has risen sharply.
Bitcoin search volume on Google has doubled since the beginning of the month and peaked on March 12, when the price of Bitcoin dropped by 20%.
Search volume for Bitcoin has skyrocketed. Image: Google Trends
A similar situation was found in China. According to the Baidu Index, the number of Bitcoin-related searches on Baidu increased by 183% in March.
This article has been authorized for translation by DecryptMedia.com