The same is the breakthrough of 8,000 US dollars, what is the change in the bitcoin fundamentals between 2017 and 2019?

Half a year ago, the currency circle was still immersed in the negative atmosphere of “Bitcoin would fall below 3,000 US dollars.” After April, the price of the currency leaps forward, breaking through the pressure to stand at 8,000 US dollars. The offensive has to be reminiscent of 2017. A picture that is skyrocketing.

In November 2017, Bitcoin broke through the $8,000 mark, and after three weeks, the price of the coin rose 150% to its highest point in history. Today, bitcoin prices have soared to more than $8,000, but bitcoin has changed dramatically since 2017.

market share

On November 25, 2017, Bitcoin reached $8,000, and Bitcoin accounted for 52% of the total market value of all cryptocurrencies.

On May 15, 2019, Bitcoin broke through $8,000 again, and this time the market share in the cryptocurrency market increased to over 57% .

Daily payment on the chain

On November 25, 2017, 838,000 bitcoin active addresses occurred, and 336,000 transactions occurred on the same day.

On May 15, 2019, there were 367,000 transactions in the 726,000 bitcoin active addresses. This indicates that the number of transactions on the chain is increasing, but the number of active addresses is decreasing.

After a lapse of one and a half years, more and more addresses have become "quiet addresses", on the one hand, due to the increase in the number of Bitcoin Hodl, and on the other hand, the loss of Bitcoin wallets and private keys. The increase in the number of transactions on the chain also represents a certain degree of increase in the liquidity of Bitcoin.

Bitcoin daily output

Another indicator that can better understand Bitcoin performance is the daily output of Bitcoin.

In general, each bitcoin takes an input to produce an output, and the amount of output it produces helps the analyst determine when the bitcoin was tracked and how many bits were there. On the hand of the coin HODL. If the daily output of Bitcoin continues to decline, it means that the trading activity has returned to life, and vice versa.

A year and a half ago, Bitcoin’s daily output was around 865,000, with 2.9 million bitcoins traded per day; although the current daily output has increased by about 128,000, there are fewer bitcoins being traded – Only 1.7 million bitcoins were traded.

Bitcoin memory pool size

We know that to complete a bitcoin transaction, you must get verification from all nodes. The higher the transaction fee for a transaction, the more likely it is that the miners will be given priority, and those transactions with very low transaction fees will be processed by the miners, and these transactions will be temporarily stored in the bitcoin memory pool (mempool).

At the end of 2017, the number of Bitcoin transactions surged, the Bitcoin memory pool was smashed, thousands of transactions were awaited processing, and transaction fees soared. On November 25, 2017, the total size of the memory pool reached 58 million bytes .

Since then, some offline or out-of-chain solutions have been proposed to improve Bitcoin's transaction processing capabilities. Today, the memory pool is only 7.7 million bytes , which is 87% less than the highest peak.

Since 2017, three technologies have been developed to reduce Bitcoin transaction fees and increase transaction speed:

  • Transaction batch processing (combining several transactions into one bundle), this way can reduce the total number of transactions on the bitcoin chain and reduce network congestion. Generally, exchanges and mining pools are used more.
  • Isolation Witness was added to Bitcoin via soft fork in August 2017. Isolation witness is to take out the digital signature information in the block, so that each block can carry more transactions, so as to achieve the purpose of expansion.
  • Lightning Network puts the transaction outside the Bitcoin blockchain to achieve the purpose of expanding Bitcoin trading capabilities. It was first proposed in 2016 and is now used in a small area. Before the settlement, people can use the lightning network to create countless transactions without uploading information to the blockchain.

A year and a half ago, the cost of each transaction was about 147 to 230 Cong/bytes, which is equivalent to $3 to $5. When Bitcoin rose to $19,900, the cost per transaction rose to $50 .

Over time, different solutions have been launched, and the transaction costs of Bitcoin have steadily declined. Currently, each cost is only 44 to 87 Cong/bytes, which is between $0.82 and $1.6.

From 2017 to 2019, we can easily find that Bitcoin is getting faster, transaction costs are cheaper, and the overall network is becoming safer. It can be said that Bitcoin is getting closer and closer. Nakamoto's vision of "point-to-point electronic cash".

(Source: cryptoslate Compilation: Martha Card)