Although Bitcoin’s performance has not been very impressive lately in terms of price, its fundamentals have been doing wonders in the background. According to cryptocurrency analysis firm TradeBlock, these fundamentals are not just remarkable, but they also point to a bright new year for the number one cryptocurrency in 2020.
One of the key fundamentals, according to the firm is transaction volume. The year 2019 has set a record as the year with the highest amount of value moved in USD through Bitcoin. In fact, Bitcoin holders moved over $500 Billion in USD in a single day, a phenomenon that has never been witnessed in the ten years of Bitcoin’s existence, until now.
This suggests more transactions are being conducted on the Bitcoin network despite the poor performance of the asset in price. It also suggests that more people are getting interested in using Bitcoin as a means of transferring value, a development that TradeBlock says is setting Bitcoin up for a bright new year ahead.
Another fundamental that has reached a record high in 2019 is the hash rate. This is how fast the network is able to process information and it has reached unprecedented levels in 2019. Specifically, it rose to 113 ETH/s, a record that is far higher than anything ever seen. This suggests that despite the dwindling price, miners are still hopeful that Bitcoin will do well eventually and especially as we enter the new year.
Historically also, the increasing hash rate has usually been followed by an increase in price. This time may not be different so going by the past patterns, Bitcoin may be seeing some significant price gains as we enter the new year.
The transaction count on the Bitcoin network in 2019 also far exceeds that of any of the preceding years. Again, this suggests a growing interest and rising utilization of the asset for transactions. In May, over 12 million transactions were recorded which is higher than the 11 million recorded in December 2017 when Bitcoin rose to its highest price ever.