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Bitcoin [BTC] fails to witness improved transaction rates despite surging by 32% over 30 days

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The crypto-ecosystem is often laced with unpredictability and risk, with the market indulging in wild price swings. Bitcoin, to the joy of small-term investors, has improved its valuation by almost 125 percent in 2019, at press time. It’s valuation peaked at 131 percent a few days previously.

According to blockchain.com, over the last 30 days, the virtual asset exhibited another bullish run which improved its valuation by approx 30 percent. The statistics recorded are impressive however, it was observed that the transactions per day on the Bitcoin network remained fairly constant over the same time period.

Source: Blockchain

On 21st April, the transactions recorded per day was around 390,735 and the data charted on 21st May was little lower, with 381,582 transactions occurring on that day. Over the past 30 days, the average transactions per day consolidated between the range of 300,000 to 390,000, which signified that the rate of transaction did not increase with the price surge.

The increased number of transactions often indicates an improved rate of adoption, which is the primary objective of most digital assets. The fact that the number of transactions did not mirror the same growth rate as the valuation of the coin indicated that network activity might not be as prominent as the increased rate might have suggested.

Bitcoin [BTC] dominated the overall crypto market capitalization by more than 56.5%, at press time. The coin was priced at $7849.05. However, prices of Bitcoin failed to witness major changes over the past seven days, as the valuation only fell by 1.89%.

The transaction rates of Bitcoin [BTC] might not show a stark increase, but it still is significant as it was recently reported that holding Bitcoin was more profitable and beneficial than holding some fiat currencies like Peso.

 

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Max Keiser: New Bitcoin Network Hash Rate High Suggests Price Is Next

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The Bitcoin (BTC) hash rate has broken yet another new all-time high, according to Aug. 19 data from monitoring resource Blockchain.com.

The top coin’s hash rate has continued to break previous records throughout summer, today hitting an whopping 82.5 TH/s.

Bitcoin network hash rate, 1-year chart

Bitcoin network hash rate, 1-year chart. Source: blockchain.comIn a tweet posted earlier this month, Bitcoin investor Max Keiser reiterated his mantra that:

“Price follows hashrate and hashrate chart continues its 9 yr bull market.”

The argument goes that the higher the Bitcoin hash rate, the more secure the network, the higher the investor confidence will be, driving up demand. Therefore, Keiser argues that price is playing catch up with network fundamentals.

Network Fundamentals

The hash rate of a cryptocurrency — sometimes referred to as hashing or computing power — is a parameter that gives the measure of the number of calculations that a given network can perform each second. A higher hash rate means greater competition among miners to validate new blocks; it also increases the amount of resources needed for performing a 51% attack, making the network more secure.

The string of new records posted throughout summer is a bullish sign, with analysts and traders alike buoyed by signs of the strength and robustness of the network.

Looking ahead

Bitcoin’s halving — a pre-coded 50% reduction of block rewards for miners— remains some time away: May 2020. 

While the event can have bullish implications for a coin’s price (by increasing scarcity), its impact on miners is keenly watched, with some concerned that lower block rewards will deter network participants and adversely impact the network’s hashing power.

This summer, Litecoin (LTC) creator Charlie Lee — who had forecast a post-halving shock to the coin’s mining ecosystem — had his expectations overturned when the network’s post-event hash rate was revealed to be just as robust as ever.

Source:cointelegraph

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World’s Largest Crypto Trading Competition Announces 600,000 USDT Prize

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The Bitcoin (BTC) hash rate has broken yet another new all-time high, according to Aug. 19 data from monitoring resource Blockchain.com.

The top coin’s hash rate has continued to break previous records throughout summer, today hitting an whopping 82.5 TH/s.

Bitcoin network hash rate, 1-year chart

Bitcoin network hash rate, 1-year chart. Source: blockchain.comIn a tweet posted earlier this month, Bitcoin investor Max Keiser reiterated his mantra that:

“PRICE FOLLOWS HASHRATE AND HASHRATE CHART CONTINUES ITS 9 YR BULL MARKET.”

The argument goes that the higher the Bitcoin hash rate, the more secure the network, the higher the investor confidence will be, driving up demand. Therefore, Keiser argues that price is playing catch up with network fundamentals.

Network Fundamentals

The hash rate of a cryptocurrency — sometimes referred to as hashing or computing power — is a parameter that gives the measure of the number of calculations that a given network can perform each second. A higher hash rate means greater competition among miners to validate new blocks; it also increases the amount of resources needed for performing a 51% attack, making the network more secure.

The string of new records posted throughout summer is a bullish sign, with analysts and traders alike buoyed by signs of the strength and robustness of the network.

Looking ahead

Bitcoin’s halving — a pre-coded 50% reduction of block rewards for miners— remains some time away: May 2020. 

While the event can have bullish implications for a coin’s price (by increasing scarcity), its impact on miners is keenly watched, with some concerned that lower block rewards will deter network participants and adversely impact the network’s hashing power.

This summer, Litecoin (LTC) creator Charlie Lee — who had forecast a post-halving shock to the coin’s mining ecosystem — had his expectations overturned when the network’s post-event hash rate was revealed to be just as robust as ever.

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Why Bitcoin Matters: Ghana Finance Crisis Ties Up $1.6 Billion for 70,000

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For the longest time, Bitcoin (BTC) has been viewed as something with no inherent value.

Legendary investor Warren Buffett, for instance, once called the cryptocurrency “rat poison squared”, later explaining that there isn’t much inherent value in the project. Other notable players in finance and politics, including U.S. President Donald Trump, have echoed this analysis, using phrases like “thin air” and “unbacked” to get their point across.

Unlike traditional stocks and assets, Bitcoin doesn’t provide a fixed yield, a dividend, or generate cash flow. And compared to traditional and modern fiat currencies, BTC isn’t backed by the power of a government or the scarcity of an underlying asset.

But, a series of recent macroeconomic and geopolitical events all across the world have begun to prove that Bitcoin is needed, whether governments, Wall Street, Silicon Valley, or central bankers like it or not.

Bitcoin is Needed, Now

According to a recent report from Bloomberg, Ghana is in the midst of a financial crisis. The report, published this weekend, suggests that there are 70,000 Ghanaian investors affected in a “cleanup” of the nation’s banking industry.

The outlet writes that the crackdown, which resulted in many local lenders and savings companies shuttering their businesses, “triggered a run on fund managers”, most of which who weren’t liquid enough to satisfy the demands of their investors.

Due to this, there exist a purported 70,000 Ghanian investors who can’t access $1.6 billion worth of their investments, more than a third of the African country’s private fund sector. Yikes.

According to cryptocurrency commentator Rhythm, Bitcoin “fixes this”. What he/she seems to be referring to is the fact that unlike the traditional fiat system, Bitcoin and other decentralized technologies don’t require middlemen.

Should you be investing in the right products and with the right infrastructure, you should be the only one that can manage your Bitcoin and cryptocurrency investments.

This crisis in Ghana is somewhat reminiscent of what happened in Cyprus around five years ago. For those who missed the memo, the European island nation was required to bail in its commercial banks, resulting in thousands losing their wealth, a run on the banks, and a subsequent spike in local Bitcoin demand.

Of course, Ghana is in a different situation, but the underlying need for Bitcoin then and now is all the same, if not more accentuated. Bitcoin is decentralized, non-sovereign, scarce, immutable, programmable, and unconfiscatable.

World is Screaming for An Alternate Economy

This crisis comes as many other facets of the world are starting to scream for something new, something different.

Just look to Argentina, where the incumbent president lost a recent race to someone who analysts say will plunge the South American economy into yet another bout of chaos. This political result led to a 20% collapse in the Peso against the U.S. Dollar, a 50% collapse in the local stock market, and a slight uptick in Bitcoin volumes and a premium for cryptocurrency.

There’s also a crisis in Hong Kong, where literally millions of locals have been taking to the streets to protest the actions of the local government and the mainland Chinese government, who they say are encroaching on their democratic freedoms. There, too, a premium on the price of Bitcoin has been seen.

Bitcoin, according to a growing number of analysts, is a perfect hedgeagainst macroeconomic turmoil, geopolitical debacles, inflationary monetary policies, irresponsible fiscal policy, and so on and so forth.

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