Although Bitcoin’s Value Remains The Same, The Number Of BTC Holders Keeps On Increasing
Even though there has been a massive call from the community for an increase in the value of Bitcoin, the movement of price has been sideways. This is because there is a major resistance of over $4,000 and major support under $3,800. A lot of people in the community are using this time to stick up their Hodl bags.
In the above graph, we have to take a look at UTXO. UTXO stands for the unspent output from bitcoin transactions. Each bitcoin transaction begins with coins used to balance the ledger. UTXOs are processed continuously and are responsible for beginning and ending each transaction. Confirmation of transaction results in the removal of spent coins from the UTXOdatabase. UTXOs are critical in preventing double-spend attacks, and they stop you from spending coins that don’t exist. Network nodes record and maintain a database that contains every UTXO available for spending.
Despite the drop in price, UTXO has remained strong. It is one of the indicators that show that the bitcoins fundamentals keep on getting healthier as days pass. Lopp, the chief of technology at cryptocurrency solutions provider Casa, explained that “by any metric [other than price], the system is improving and growing.” Among a number of other bullish statistics, the long-time industry participant revealed that the number of BTC-supported ATMs rose by 100% in 2018, while the network’s hash rate doubled.
Earlier this year we had reported about Weiss Ratings giving reasons to why bitcoins fundamentals are going strong. From a value perspective, Anthony Pompliano touted the importance of Bitcoin given its transaction volume, which is beginning to mirror that of Mastercard. What is perhaps even more profound is the fact that a large percentage of these figures stem from retail trading with minimal institutional presence. Pompliano identifies this same trend stating that is another indication that upon the influx of institutional investors, BTC has the right fundamental outlook to stage another massive positive price breakout.