Bitcoin 2017 vs 2019: How’s the World’s Leading Cryptocurrency Evolved During Market Cycles?

  • Since 2017, there have been a number of technologies such as ‘SegWit’, ‘Batching’ and ‘Lightning Network’ that have helped reduce the processing fees associated with the Bitcoin network to a large degree.
  • The Lightning Network, in particular, has been responsible for substantially increasing the native tx capacity of the BTC ecosystem.Many of our regular readers may recall that the last time BTC scaled up beyond the $8k mark was during November 2017. During that time, BTC was experiencing an unprecedented surge that saw the price of the premier alt-asset hover around the $20k threshold.With that being said, the financial conditions of 2019 are not quite the same as what they were a few years back. So in this article, we will look at how the fundamentals of the flagship asset have changed over the course of the past 2 years.

Closer Look at the Matter

First and foremost, back in November 2017 — a time when BTC was trading for just over $8,000 — the market dominance of the premier digital currency lay around the 52% mark. In the same vein, now that BTC has once again crossed the $8k threshold, we can see that the dominance of the currency stands at an increased 57%.

(i) TX Throughput: When factoring in the daily number of transactions associated with BTC since 2017, we can see that a couple of years back, the Bitcoin blockchain was processing approximately 337,000 daily transactions per day (across 697,000 unique addresses). Similarly, over the course of the past couple of days, a little more than 390,000 confirmed transactions between 600,000 addresses have taken place within the BTC ecosystem.

(ii) Economic Output: Back in late 2017, the total number of outputs (per day) associated with the BTC blockchain lay around the 865,000 mark — a figure which represented nearly 2.9 million BTC.

Today, this daily output has been reduced to 128,000 — since fewer tokens are now being transacted on a day-to-day basis.

(iii) Mempool Size Comparison: For those of our readers who may not be aware, every Bitcoin transaction needs to be verified by all of the individual nodes present within the altcoin’s ecosystem before it can be ‘confirmed’. However, pending transactions are usually contained within what is referred to as a “Mempool.” In regards to the matter, we can see that

“the higher the processing fee associated with a particular transaction, the higher the chances that a miner will pull the transaction from the Mempool and include it in the next block.”

With this information in mind, we can see that during the bull season of a couple of years back, the total size of the Bitcoin Mempool was around 58 million bytes. However, due to the rise of on-chain and off-chain processing solutions such as the ‘Lightning Network’ over the past couple of years, the Mempool size associated with BTC is now around 7.7 million bytes— thereby showcasing a reduction of around 87%.

Final Take

In closing out this piece, it should be pointed out that ever since Bitcoin came into the global spotlight a few years back, the tx fees associated with the currency have decreased quite substantially. It now remains to be seen what the future has in store for not only BTC but the crypto sector as a whole.

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