[2019-04-25] Bitcoin Economic Activity Now 30% Higher Than At $20k Price

[tyz]

Bitcoin Economic Activity Now 30% Higher Than At $20k Price

While Bitcoin transactions per day have hit a fresh 2019 high, a “better indicator” measuring transaction outputs reveals that economic activity on the BTC blockchain is currently at a record high.

https://bitcoinist.com/bitcoin-economic-activity-now-30-higher-than-at-20k-price/

[Michael_McGraw]

One of the best article for a long time! Thanks for sharing it.

[buwaytress]

That's good news, and it's no surprise. With the hype dying down (and yes, I actually believe it hasn't completely died down, despite what most people are seeing in the charts), people are returning to practical use (hence all the development on lightning, for example) and going back to non-market-related drawing board plans. Not even just for Bitcoin, this is happening for other serious projects. IEOs and STOs will take some shine out of that, but people are getting reacquainted with Bitcoin's really very good aspects as money!

[TheKeyLongThumbI]

That's good news, and it's no surprise. With the hype dying down (and yes, I actually believe it hasn't completely died down, despite what most people are seeing in the charts), people are returning to practical use (hence all the development on lightning, for example) and going back to non-market-related drawing board plans. Not even just for Bitcoin, this is happening for other serious projects. IEOs and STOs will take some shine out of that, but people are getting reacquainted with Bitcoin's really very good aspects as money!

We have already seen IEOs taking some spotlight also but I never witnessed successful STOs. Anyway, this just proves again and again that what does not kill bitcoin, makes it even much stronger. Finally, I can feel alive that bitcoin came back just like a phoenix and will rise on to the next level of ath sooner.

[Kemarit]

We have never seen this kind of transaction since 2017 height. And yeah there are a lot of happening, OTC trade, LN's off and onchain transactions. Pretty much speaks that Bitcoin just hibernate and it seems it has come alive just this month alone. As far as IEO goes, it's also taking a lot  hype specially when Binance started this craze with their MultiVac and other follow suit. What's next would be scary, seeing Bitcoin hits another all-time-high and mempool is going to be clogged again. 

[hatshepsut93]

I personally don't feel it, I regularly check Bitcoin freelance websites looking for work, and their activity dropped compared to 2016-2017. Also a lot of services dropped Bitcoin when network fees skyrocketed as the result of the last bubble - Steam and fiverr are among the biggest names. I would be very glad if Bitcoin had more economic activity, cause it would mean that I could spend and earn money using it instead of fiat, but sadly I don't feel like it's happening.

[davidtld]

Nice article! Thanks for share!

[dunfida]

We have never seen this kind of transaction since 2017 height. And yeah there are a lot of happening, OTC trade, LN's off and onchain transactions. Pretty much speaks that Bitcoin just hibernate and it seems it has come alive just this month alone. As far as IEO goes, it's also taking a lot  hype specially when Binance started this craze with their MultiVac and other follow suit. What's next would be scary, seeing Bitcoin hits another all-time-high and mempool is going to be clogged again. 

Primary thing i do concerned or worry about when Bitcoin transactions bloated and reaching up high price again where tx becomes slow and fees become so expensive too.

I'd rather to prefer this slowly and gradual pace of increase and about the activity its quite good to see that btc is going stronger inspite on low-level price which is more preferable rather
than seeing hard pumps and dumps.

[1Referee]

One of the best article for a long time! Thanks for sharing it.

What makes it one of the best articles? All Bitcoinist has done is collect publicly available information and create a story around it. 

We're somewhat at a maximum in terms of daily transaction throughout with current level of Segwit adoption, so it's not going to be more rosy than this. It's really waiting for Schnorr to finally make it into a main release so it frees up blockspace that will allow more transaction throughput. This will be the most bullish upgrade ever in my opinion.

The only increase in economical activity I have seen is massive (very likely OTC related) transactions, and it has been in an uptrend for over a year now.

[magneto]

There has obviously been a lot more adoption that has happened between the 2017 bull market, and now. Given the time alone, it should have told the exact same statistic.

Even though prices were down, institutions were still starting to enter the market, and now that the market seemed to have entered another phase of bullishness it's really no surprise that activity is substantially up.

Though, I'd be cautious of using this as a tool to predict what will happen in the future. All that this says is that adoption is likely increased, and since deposits/withdrawals to trading platforms constitutes a major part of the transactions on chain, trading activity is also up. It doesn't necessarily say anything about what holds in the future, especially in terms of short term market outlooks.

[BitHodler]

I haven't seen that many indicators that actually point at more economic growth. Sure, there is always a constant flow of organic growth, but with how we're still in a bear market, the growth is very likely not that significant at all.

I rather wait 6 more months to see how everything looks at that point, because a short term spike in transactions and outputs can be exactly that, a short term spike. News outlets always try to make a mosquito look like an elephant.

[Naida_BR]

I personally don't feel it, I regularly check Bitcoin freelance websites looking for work, and their activity dropped compared to 2016-2017. Also a lot of services dropped Bitcoin when network fees skyrocketed as the result of the last bubble - Steam and fiverr are among the biggest names. I would be very glad if Bitcoin had more economic activity, cause it would mean that I could spend and earn money using it instead of fiat, but sadly I don't feel like it's happening.

That's true. The demand for jobs that pay in bitcoin has been dropped significantly both from employees and employers side.
Maybe the bitcoin economic activity comes from the trading side and possibly trades push it to soar.

[Slow death]

Thus, block space optimization via SegWit is proving to be a successful scaling strategy for the meantime despite the network now processing more transactions on average.

I do not understand the technical aspects behind bitcoin, but I must say that I am very happy that I pay very low rates and have confirmed transactions quickly, it was a victory for the community to implement SegWit. however we need to have more results in the field of bitcoin legalization around the world. Years have passed and I do not see countries legalizing bitcoin so that we use bitcoin as a means of payment without having problems with governments and banks. we need to change the scenario of lack of regulation that exists