Bitcoin has been hovering around the $10,000 mark for much of September, peaking at nearly $10,900 before dropping dramatically back down. The volatility is still there, though the price seems set to take a positive trend and many are predicting that this is just the beginning of a bullish market.
Volatility is one of the factors that is known to hinder the widespread adoption of Bitcoin and other cryptocurrencies as payment methods. As long as the market swings wildly, retailers will be sceptical of the problems the currency could present in terms of transaction times and exchange rates.
Bitcoin has come to represent the entire crypto market, albeit a market that is still emerging. Although there was more stability in 2018, the recent bull rally has shown that instability is still ready and waiting.
Despite this, adoption is occurring at all levels. The number of BTC addresses is already increasing and, as we will explore soon, so are the number of transactions and outputs. A greater number of companies now offer crypto services, from casinos using the technology on front desks, to companies like Microsoft and Expedia accepting payments. Corporate interest has also increased, for better or worse, with Facebook, J.P. Morgan and Walmart all potential space disruptors.
Adoption is certainly one area that improves the value and sustainability of the Bitcoin ecosystem. The fundamentals of the technology and the BTC economy are also important indicators for the overall health of the industry, and these have reached all time highs as of late.
This could be down to increased interest levels and confidence in Bitcoin, as well as the wider availability of mining pools and improved mining hardware. Whatever the case, hash rate reached its all time high on September 8th, with 94 quintillion hashes per second. Network security has never been better.
The price of Bitcoin reached an all time high in December 2017, trading at over $20,000. Despite recent improvements in price, the overall value of the currency has dropped by around half since then. Did the developers flee when this drop occurred? The short answer is no. The number of developers has remained steady since then (rising from 106 in 2014 to 314 today). That’s more experts solving working on maintaining security, boosting the performance and capacity and reducing transaction costs.
Outputs per day, considered a more accurate measure of economic strength, also hit over 1 million in April, and regularly hit over 700,000. Outputs are considered a more accurate measure of economic strength, as users can make multiple transactions in a single output.
(Disclaimer: This article does not qualify as investment advice or suggest anything to do with investment. Anyone thinking of investing in cryptocurrency should be aware of the risks and be prepared to lose their entire investment.)