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Bitcoin shows confident recovery of the network hashrate and the number of BTC transactions

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The total computing power of Bitcoin mining equipment (BTC) has increased to the values of November last year.

The hash rate has now reached 50 EH / s. The growth of this indicator indicates the accession to the network of new devices for the extraction of BTC .

According to some experts, this is a positive signal for the price of cryptocurrency, as miners rely on its future growth.

“The price follows the hashrate. The schedule of the latter continues the nine-year upward movement , ”said TV presenter and former trader Max Kaiser.

However, some experts of cryptoindustry are convinced that the growth of hashrate is an ambiguous signal for the market. So, according to the technical director of start-up Casa Jameson Lopp, miners are guided by speculative interest in relation to the future price.

“The Miners are also speculators!” , Said Lopp.

Thus, the veteran of the cryptoindustry hints that in the future it is the miners who can put serious pressure on the price of "digital gold". This hypothesis is supported by other experts.

The volume of transactions in the Bitcoin network (BTC)

The volume of transactions in the Bitcoin network, which has already reached the levels of the first half of January 2018, is also growing steadily:

Then, just over a year ago, the market capitalization was at a maximum, and Bitcoin was still trading well above the $ 10,000 mark.

If we compare the high current rates of blockchain activity with the price of Bitcoin, we can come to the conclusion that the cryptocurrency may be somewhat undervalued and is trading below fair value .

This thesis is confirmed by the data of the indicator MVRV (Market Cap versus Realized Cap), which shows the ratio of market capitalization to realized:

The MVRM value below 1.0 indicates that Bitcoin is undervalued. If the indicator value is above 3-4, then the asset is significantly overvalued. Now the MVRM value is at 0.77. This says that the asset is oversold and its price should soon recover.

It is worth noting that the historical minimum of the indicator was recorded in January 2015 at around 0.56. Consequently, there is room for further decline and before the start of a bull rally the price may still fall in the short term.

Lightning Network Protocol Development

It should also be borne in mind that some of the bitcoin transactions are being carried out of, for example, in the second-tier Lightning Network (LN) network. According to 1ML, LN has more than 6,000 nodes, 24 thousand payment channels, and the network capacity exceeds 659 BTC ($ 2.4 million):

Lightning Network protocol helps to solve the problem of Bitcoin scalability, makes payments anonymous and significantly reduces the transaction costs of users.

Publication date 10.02.2019
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How do transactions occur in the Bitcoin network? The whole cycle from start to finish

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Bitcoin (BTC) and its complexity have become a concept that many cryptocurrency users have been trying to understand since its inception. In his latest video, the famous Bitcoin enthusiast Andreas Antonopoulos and the author of the book “Mastering Bitcoin,” spoke about the life cycle of a Bitcoin transaction with a wallet from start to finish.

Antonopoulos said that since the transaction was sent from the wallet for confirmation to the Bitcoin network , the wallet creates a transaction, accumulating BTC in the user's wallet and assigning addresses. Then the user's wallet transfers the transaction information to one of the many nodes to which it is connected, from where it can be sent to “1, 2 or even 8 other nodes”.

“Then the transaction is transferred to other nodes, which can be mining nodes, e-commerce payment gateways and other options. Each of these nodes will receive a transaction from yours, and each will verify each transaction. When nodes receive transactions, they do not know whether it was created by you or was redirected, and therefore each of these transactions must be checked individually. ”

Then Antonopoulos said that if all the nodes are checked, i.e. if the payment details are correct and it is confirmed that there were no double costs in the blockchain, then the transaction information will be sent to every other node.

“As soon as a transaction reaches the mining pool , it enters the pool of unconfirmed transactions, for example, a basket in which all unconfirmed data is stored. In another way it is called mempul. The information in individual memoplahs may coincide by 99%, but there will never be complete similarity. ”

According to the expert, the memory also serves to submit the transaction to the BTC miner to add a new block, after which the race is turned on for the next block. As a rule, miners have to build a block, and then solve it with the help of Proof-of-Work , making it ultimately confirmed.

Once the unit is ready, the information will be sent mayningovomu equipment to solve the problem in this particular block, and probably after the "billion hashes" miners will block.

“As soon as PoW is resolved, the mining node will return the node back in the same way as it received. The nodes check the block on the way back, and as soon as all the nodes confirm its validity, the user's wallet will know about the confirmation of the transaction. This is the full life cycle of a transaction. ”

Publication date 04/22/2019
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At the upcoming bull rally, Bitcoin (BTC) capitalization will exceed $ 1 trillion

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Chris Berniske, who previously led cryptocurrency investments in ARK Invest and is now a partner in Placeholder, a $ 150 million asset management venture fund, said that Bitcoin's market capitalization will exceed $ 1 trillion. in the next bull market:

“Estimates of the top 10 cryptoactive assets at the end of each year give me the idea that only Bitcoin will reach $ 1 trillion. in the next bull market. ”

Recall that during the cryptocurrency boom at the end of 2017, when the price of Bitcoin reached $ 20,000, the market capitalization of the entire crypto market reached a maximum of $ 813 billion. If the capitalization of only one Bitcoin exceeds $ 1 trillion, it will trade at a rate above $ 40,000.

How can bitcoin reach a market capitalization of $ 1 trillion?

Like gold and other commodities, Bitcoin must become a recognized store of value with a developed infrastructure in order to cope with a huge influx of capital. In the near future, the development of this infrastructure may take several years.

In a Fortune interview last year for the New York Stock Exchange, Jeff Sprecher said that buying Bitcoin today is quite problematic for institutional investors.

“Bitcoin does not have a good market structure. Even for Bitcoin, different markets publish a lot of different prices. And you can pay up to 6% of the spread to exchange dollars for bitcoins, which means that bitcoin must grow by as much as 6% so that you can break even. ”

Many investors, including billionaire Mike Novograz, believe that those that lead Bitcoin to a trillion-dollar market capitalization are likely to be institutional investors. In an interview with Bloomberg, Novograz said:

“Maybe one of the fearless pension funds, one of the market leaders, will say:“ you know what? We have custodial services, Goldman Sachs participates, Bloomberg has an index by which I can track results. ” And they will buy. Following them, others will also start shopping. There will be a similar FOMO, which we have already seen among retail investors, only at the institutional level. ”

The imminent arrival of institutional investors to the cryptocurrency market was mentioned as early as 2017. According to a survey conducted by TRADE Crypto in partnership with BitGo, 94% of the 150 surveyed endowments in the US have already invested in the cryptocurrency market.

Morgan Creek Digital, the first US pension fund that invested in cryptocurrency, said that 66% of investments in cryystocurrency products of Grayscale come from institutional investors .

Publication date 04/22/2019
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Bitcoin transaction fees (BTC) increased by more than 2 times.

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What does the increase in commissions in the Bitcoin (BTC) network mean, is it a precursor of market growth or a weak digital currency?

In April, the average commissions for conducting transactions in the Bitcoin network rose again – and this is after they have stayed at a level slightly above $ 0.5 over the past six full months. Currently, according to Bitcoincharts, they average from 1 to 2 dollars, that is, at least doubled.

Why do commissions grow?

Analysts recall that a significant increase in this indicator, up to $ 50, happened in December 2017, amid a growing market. Now the market is not growing as it was then, but Bitcoin could regularly turn out to be above the level of 5.2 thousand dollars. In the cryptocurrency sphere, optimism prevails in general.

In addition to the fact that Bitcoin sets records on the number of transactions in the network, the growth of average commissions means that an increasing number of users prefer to pay more in order to receive confirmation of the transaction quickly.

However, bitcoin is not in a market vacuum. As the supporters of the fork of the Bitcoin Bitcoin Cash network pay attention, “the commission for transactions on Bitcoin is almost 1.2 thousand times higher than on the Bitcoin cache”, which is confirmed by the latest data.

Meanwhile, in both cases, if we compare it with bank card commissions, transactions with cryptocurrencies are more attractive. So, as Joel Shacleton, vice president of Canadian Gold Investment Management, said: “Once at the Johannesburg airport, I needed US dollars, and I had a card on which Canadian dollars lay. As a result, in total, I paid commissions in the amount of $ 57 and still faced a spread at exchange rates of 3.5%. ”

Thus, even if the competition in cryptocurrency is high, in general they prove to be more effective than the classical instruments of financial transactions.

Publication date 21.04.2019
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Name Price24H (%)
Bitcoin (BTC)
$5,305.00
1.08%
Ethereum (ETH)
$171.27
2.02%
XRP (XRP)
$0.326198
2.08%
Bitcoin Cash (BCH)
$293.31
2.96%
EOS (EOS)
$5.21
1.34%
Stellar (XLM)
$0.113714
0.54%
Litecoin (LTC)
$77.20
2.82%
Cardano (ADA)
$0.075572
4.26%
Tether (USDT)
$1.00
-0.07%
Monero (XMR)
$69.84
3.17%
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