Bitcoin’s Fundamentals are Staying Sharp, Starting to Shine Despite Price Struggling for Strength
Even though the previous year had been a disaster for the value of Bitcoin as it dropped to over 80% of its peak value, if you look at the fundamentals, the ecosystem is thriving. Especially with institutional players, the cryptocurrency turned most eyes towards it.
Although According to crypto trader Thrillmex who goes by the name Rampage, there is almost no attention being paid to Bitcoin’s network statistics.
In a Twitter thread, points out that according to Blockchain.com’s data, the aggregate revenue of the miners is at two year low. Additionally, the transaction fees on the network are also at five year low.
Bitcoin miners revenue is hitting a near 2 year low.
This also means that it's becoming super cheap to transact on the network again.
Anyone remember the ridiculous fee's and long wait times to transact in late 2017?
— Rampage (@Thrillmex) February 17, 2019
What’s interesting is that despite this the average daily transaction count on Bitcoin is almost as high as December 2017. The number of active Bitcoin wallets has also increased. According to the prominant trader, Hashrate, which is the most important statistic to be tracked after transaction count, has also steadily increased.
It had bottomed in December to about 31 million terahashes per second but has since climbed to 47 million terahashes. This is because new miners are entering the market with more hashpower while the previous miners still hold strong.
This distinction between decreasing mining revenue and an increasing hashrate shows that the bitcoin ecosystem still pulls in money. The network continues to get stronger. Thrillmex says that miners have the thickest skin in the game and want to see Bitcoin prosper more than anyone else.
Thrillmex, however, warns that the infrastructure around Bitcoin being built might not correspond to the user base.
These remarks by Thrillmex follows Dan Held’s similar comments. The co-founder of ZeroBlock, Dan Held, who is director of business development at Interchange, stated that despite the bear market, he was very bullish on bitcoin (BTC).
He listed the launch of Fidelity and Bakkt, huge lightning network growth and movement of $1 billion on the bitcoin network as the reasons behind his optimism.
While we're in a #Bitcoin bear market, I'm more bullish than I've ever been:
– $1B moved DAILY on the Bitcoin network
– Huge Lightning Network growth
– Schnorr, MAST, Taproot
– Bakkt and Fidelity about to launch
– Government debt at all time highs
— Dan Hedl (@danheld) February 16, 2019