Ok. Number of Bitcoin transaction increased double. Expect price increasing?

[avatar_kiyoshi]

In this case, yes. The number of transaction that has been increased in the blockchain of bitcoin means that there is a lot of people that are now into bitcoin. In simple economics, the more the demand, the higher the price that we are going to see. The number of transactions is the reflection of the demand of bitcoin in the market so it is equal to a price spike in bitcoin.

The fact is number of transaction going down slowly compared to last year, it's around 330.500k now, last year(May 2019) around 450.400k and the peak in 2017 around 490.400k. As you can see the number of transaction between May'19 and the late of 2017 is almost the same.
Please reference here: https://bitcointalk.org/index.php?topic=5217077.msg53591479#msg53591479

Let's compare the price between May'19 and the late of 2017.
May 2019 = $9,005
The late of 2017 = nearly $20k
This proves that the number of transaction and the price is have no correlation.

[johnwest]

So i heard that the number of Bitcoin transaction increased double recently.

which means i can expect price increasing near future right?


Btw, i recently got airdrop token, which is exchange token, BPX?

Do you guys think that this kind of token may have a good value or nothing?

Where did you get the information from.? Or is it just a proxy post to advertise your BPX airdrop.?

The number of transactions have not increased and its still decreasing in the long run. But before there used to be allot of dummy transactions which eventually stopped, which is good for the network. We may see more transactions if there is widespread adoption of btc and crypto.

[lixer]

So i heard that the number of Bitcoin transaction increased double recently.

which means i can expect price increasing near future right?


Btw, i recently got airdrop token, which is exchange token, BPX?

Do you guys think that this kind of token may have a good value or nothing?

Hmmm, I have heard of several reasons that can lead to an increase in Bitcoin (BTC) price and an increase in the rate of transaction has never been one of them, maybe it can signify that there is increase in usage and adoption, but it doesn’t really mean there will be increase in the price. If you talk about reasons that can make the price to increase then you should be talking about the rate of supply and the demand; a constant demand and lower supply can cause a spark that will make the price to rise.

The next thing that can affect the price is cost of production, miner’s rewards, exchanges , etc. So transaction is not part of it, I’m only looking forward to the next halving, that might lead to a bull run.

[mu_enrico]

Let's compare the price between May'19 and the late of 2017.
May 2019 = $9,005
The late of 2017 = nearly $20k
This proves that the number of transaction and the price is have no correlation.

But if you compare these two graphs:
https://www.blockchain.com/charts/n-transactions?timespan=all
https://www.blockchain.com/charts/market-price?timespan=all

The shape is somewhat similar. By mere guessing, I think it should have some degree of correlation. It might not be a perfect positive correlation though. Learn more about correlation here: https://www.investopedia.com/terms/p/positive-correlation.asp

Anyway, keep in mind that correlation is not causation; it only indicates that both variables move in the same direction.

Positive correlation is a relationship between two variables in which both variables move in tandem—that is, in the same direction. A positive correlation exists when one variable decreases as the other variable decreases, or one variable increases while the other increases.

https://www.investopedia.com/terms/p/positive-correlation.asp

That said, if the number of Bitcoin transactions goes up, it doesn't mean that the price will go up as well. Maybe in reverse, if Bitcoin price increase, the number of transactions will also increase.

[posi]

So i heard that the number of Bitcoin transaction increased double recently.
which means i can expect price increasing near future right?

That could mean two things.

Either Bitcoin is being sold or Bitcoin being bought. We don't know if it is the latter or not but let's hope that it is. It is true that the higher the demand, the price, and if a lot of Bitcoin is being sold, then let's expect a price pump. Another thing is that this is kind of expected for 2 years ago, I read a post about the blockchain. It can't hold the huge number of transactions so it should be developed. It is also said that the transaction will blow up in the future and I think that is what's happening by now.

Yes, the increase in the transaction of bitcoin can be vice-versa situations but an increase in the transaction is definitely a sign of an increase in traffic. What i don't understand in your statement is about the blockchain which you said you heard to blow up in the future. What do you mean specifically by the blow-up?

[el kaka22]

Transactions usually doesn't mean as much because how much money is involved in that matters the most. Just recently it came out that there is close to 10 million bitcoins that haven't moved over a year, assuming that is a fact, do you really think that we are getting any increases soon?

For a whole year with less and less money moving we managed to hit from 3k to $14k to $7k and now at around $9k, you think that may change just because there are some more transactions? Believe me, there are much better indicators than transaction numbers plus there has been no "double" anytime soon neither so I think you should recheck your sources as well. In the end we are going for a bull run, it may not have anything to do with transactions, just a big hype around bitcoin and that's it.

[wxa7115]

Well it could mean that adoption is increasing which is good. It’s hard to know what it really means though but it is a positive thing for sure.

Not really, when the number of transactions go up, that only means that those that are holding bitcoin right now are using it more often, this could mean several things, it could mean they are selling it, it could also mean they are buying it, or it could mean there has been an increase in the use of bitcoin as a currency but it does not necessarily point towards a bigger number of people adopting bitcoin.

While an imperfect metric the best that we have to know that is to look at the number of new addresses being used, while it is obvious many of those addresses will belong to people already holding bitcoin that are just moving their coins or receiving payments at the same time if there is a large peak in that number that could indicate an increase in the number of new users.

[Hallmader]

The number of transactions is not the basis of an increase in the price of bitcoin. Yes it can cause a price increase but don't expect that much. Let's not forget that not all increasing transactions aren't from new people making transactions with Bitcoin. Multiple transactions can be done by a single person so don't expect much.

Quite the opposite the number of transaction increases because the price of bitcoin is pumping. While I actually believe that there's no correlation regarding the number of transactions and price increase, the current bullish market however still encourage people into making movement whether sending it to another address or to the exchange which means increased transaction number.

Increased transaction could mean increase in the use of Bitcoin but not necessarily increase in the purchase of Bitcoin. Having said this, increase in transaction does not necessarily end up increase in price. Increase in transaction does not necessarily mean there is new money or investment entering the market.

[TitanGEL]

Higher transactions and higher hash rate doesn't have effect to the price of bitcoin. The main factor that affects the price is the demand and supply. It is not realistic to expect double price of the bitcoin just because the transaction increase. The recent increased in terms of transaction is only normal because the awareness is keep spreading all over the world.

[chip1994]

So i heard that the number of Bitcoin transaction increased double recently.

which means i can expect price increasing near future right?

The increase in volume was due to the high demand for bitcoin at the time. it stems from political turmoil and countries at risk of war. That's why the price of both bitcoin and volume have risen sharply in recent days. Another great thing is the halving event, only 118 days from now it will officially take place. That is also the main reason for the increasing demand of bitcoin and hope that in the future it will continue to increase to reduce inflation rate of fiat.

[Assface16678]

Higher transactions and higher hash rate doesn't have effect to the price of bitcoin. The main factor that affects the price is the demand and supply. It is not realistic to expect double price of the bitcoin just because the transaction increase. The recent increased in terms of transaction is only normal because the awareness is keep spreading all over the world.

Today we are now experiencing the price of the bitcoin goes up, and this is good news because after being stable for almost a week, the rate now is rapidly increasing. It is better to sell our money now because there is a chance that the bull run is coming over. However, still, we have a different opinion to earn more income. Also, there is no too much affect of the changes of the bitcoin into other coins because they have different factors why does the price of those coins goes up sometimes because of the investors that put their money into the specific currency.

[iamsheikhadil]

I can't say much about the token, but I don think that rise in transactions has actual contribution towards price growth. Even if it's circulated in a close group, it's not totally isolated so price can surely grow as it gets more adopted by users. In the bigger picture, price will grow due to supply vs demand.

[X-ray]

Well it could mean that adoption is increasing which is good. It’s hard to know what it really means though but it is a positive thing for sure.

I doubt it's because the adoption is increasing. When bitcoin hits ATH the transactions generated each minutes are really enormous to the point where the fee required increasing so high it takes approximately $6 for a transaction and it took so much time just to get a confirmation. It's always like this when the market is bullish. I don't know why but it seems there's some kind of pattern that we could actually feel regarding the occurence of all these sudden increase of transaction number. Maybe a group of whale making movement?.

[SquallLeonhart]

Okay we need to remove the elephant in the room and close this discussion all together. First of all the number of bitcoin transactions wasn't increased double at all, that is a wrong statement, you can literally check it on blockchain yourself whenever you want. https://www.blockchain.com/tr/charts/n-transactions?timespan=1year . Here is the link to transactions in the past 1 year that has happened every single day, the latest was 323k for example.

Now, to speak truly there was a bottom of 250k recently which is quite low for bitcoin but that was new years day so maybe everyone was just too hangover for trading however even with that 323k is not "double" of 250k, plus in the past 1 year we have seen as high as 452k as well so 323k is not something new, its something we are very used to.

[julius caesar]

People are now buying bitcoin because of the halving that might happen in April. They are taking the opportunity to have it while the price of it is not yet high and be able to gain profit into it. We are expecting price increase since people are now buying bitcoin and the demand into it will be high that will lead to rise up of price.

[Dart18]

So i heard that the number of Bitcoin transaction increased double recently.

which means i can expect price increasing near future right?

This is just a small way for his post under to be recognized.
There is no need to answer anything.

Btw, i recently got airdrop token, which is exchange token, BPX?

Do you guys think that this kind of token may have a good value or nothing?

Are you joking?
You are the one who announced about the airdrop?
Did you hit your head or something?

https://bitcointalk.org/index.php?topic=5216355.msg53567055#msg53567055

[Myfe]

So i heard that the number of Bitcoin transaction increased double recently.

which means i can expect price increasing near future right?

No. Unfortunately the popularity of bitcoin transactions will not drive the price up UNLESS we have more people buying bitcoin (new) using any other currency and the general population of bitcoin owners not cashing out their bitcoin for any other currency.

For the price of bitcoin to rise, we need more people buying bitcoin and fewer people selling bitcoin. Transactions from one person to another using bitcoin have a neutral effect on its valuation/price.

So, while the volume of bitcoin transactions doubling is a positive thing for us to infer that it'll increase the value of bitcoin it depends more on who is doing the buying and if the transactions are net new purchases of bitcoin.

[iamMhew]

https://bitinfocharts.com/comparison/bitcoin-transactions.html#6m

Transaction volume on-chain is actually going down slowly. Not sure what gave you the impression that it doubled, but that's simply not true.

https://bitinfocharts.com/comparison/ethereum-transactions.html#6m

Ethereum transactions saw a decline in the same period as well, which is indicative of how poor the sentiment is. People are more active when prices are going up then slowly exit when the price doesn't want to go up anymore.

Thanks 1Referree for the data, This is one of my questions also when I read the post, where is the reference data. Everyone should post something should back up with a relevant data. Not just a mere hearsay.

[clickerz]

So i heard that the number of Bitcoin transaction increased double recently.

which means i can expect price increasing near future right?

The increase in volume was due to the high demand for bitcoin at the time. it stems from political turmoil and countries at risk of war. That's why the price of both bitcoin and volume have risen sharply in recent days. Another great thing is the halving event, only 118 days from now it will officially take place. That is also the main reason for the increasing demand of bitcoin and hope that in the future it will continue to increase to reduce inflation rate of fiat.

Add to that is the hype that the situation in Iran, Venezuela, etc created. It created the hype that everyone being aware even not from that situation ride the situation and increasing the transactions. The more people being aware, the more they will use bitcoin and hopefully adoption which we expect is here.

[Eugenar]

Add to that is the hype that the situation in Iran, Venezuela, etc created. It created the hype that everyone being aware even not from that situation ride the situation and increasing the transactions. The more people being aware, the more they will use bitcoin and hopefully adoption which we expect is here.

On my opinion, the situation in iran is quite obsolete to be taken as the reason for the sudden increase in transaction rate we are experiencing right now. Yes, there might be an implication with this tension to the market but that is for about weeks ago already. Market correction has already done last week and the reason for me is because it is time already, that most of the traders see the good chance to buy at this time, and it is purely based on the market itself with a little push by the thoughts of bitcoin halving that will probably occur soon.