Numbers and curves often say more than a thousand words. Therefore we start the week by banging a large number of important statistics and charts about Bitcoin around your ears — and ask what this means for the state of network and market.
In this article, we show 26 charts about Bitcoin. They deal with prices, transactions, full nodes, and miners. But we start with the number that is most important for many of you: the price.
Here Monday comes up with a nice message: The Bitcoin price has risen by around 5 percent over the past 24 hours — again that has not been seen for some time. Now it stands at just under 4,900 euros. Will he still be able to break the 5,000 euro barrier?
If you zoom out a little further, the picture looks less enthusiastic — but still very positive:
This chart shows the Bitcoin euro price over approximately 16 months. It includes the large bubble at the end of 2017 /the beginning of 2018. Against this background, the increase today is rather a small noise. But the whole picture gives the impression of a sustainable consolidation by a bathtub formation.
An interesting correlation to the Bitcoin price is the “pressure” of a new tether. The dollar nominated stable coin still represents the largest share of stable coins and is used excessively on many stock exchanges. Accordingly, it’s the trading volume is almost on a par with that of Bitcoin. In many cases, the rise in Bitcoin’s share price is accompanied by an increase in the amount of tether. So it is here:
The chart shows the market capitalization of tether (blue-green line), which rose from about $2 billion to $2.6 billion during April. The interesting correlation here is to the Bitcoin price (yellow line): If the Bitcoin price of a tether dollar rises — in other words: if the Bitcoin price falls — the number of tether in circulation also falls. If, on the other hand, it sinks, the number of tether dollars rises again. Whether this is cause or effect is difficult to say: Does the production of new tether go before the Bitcoin price rise — which occasionally triggers the accusation of market manipulation — or does it follow it — and thus represent a market need to buy Bitcoins via the tether dollar? We must remain guilty of answering that question.
Another important number is the “Bitcoin dominance index”. The latter takes the market capitalization of all cryptocurrencies and calculates the share of Bitcoin from this. According to Coinmarketcap, this has risen to more than 53 percent today, which represents a high for the 1-month period.
In the long term, Bitcoin’s position is therefore far removed from its weddings but appears to have stabilized at a level that remains dominant. However, the dominance index factor is controversial. Should Stablecoins such as tether or token, which are more likely to represent stocks, really be included in this ranking? Wouldn’t it make more sense to compare Bitcoin alone against other cryptocurrencies? Alternative sides to Coinmarketcap accordingly come to other values of the dominance index, which is either lower as with Livecoinwatch and CoinGecko with slightly more than 52 percent or higher as with Coincap.io and CoinLore with 54 or 55 percent.
The number of transactions
I find the use of Bitcoin more interesting than the courses. Here, too, the picture is positive this week. The number of transactions is in record proximity according to the charts of Blockchain-Info. With just under 400,000 transactions a day, we are still some way from the all-time high in winter 2017⁄18, but the upward trend since the low in spring 2018 is stable and unmistakable.
A not to be underestimated role in the number of transactions is now played by the Veriblock protocol, which allows another coin to be mined by stamping information through Bitcoin transactions. The bend in March 2019 clearly shows this — this month Veriblock finished the tests, only to officially start them shortly afterward.
However, an important mark for determining the use of Bitcoin is the outputs. This is because it is possible that a single transaction may have more than one recipient, which means that it effectively assumes the role of several transactions, for example when exchanges bundle their disbursements. Therefore, it is sometimes said that not the actual number of transactions reflects the real use, but the number of outputs. So let’s have a look at these:
Here, too, we see a trend towards the number of outputs approaching the peak at the end of 2017 / beginning of 2018. In April, this previous all-time high now seems to have been broken with more than one million outputs. Assuming that each transaction contains a change, this could mean that Bitcoin, instead of the 400,000 or so transactions noted above, would have 500,000 to 600,000 “real transactions” per day.
The Transaction Behavior
One of the interesting questions is how the transaction behavior of Bitcoin users changes over time. If we ask about the outputs per transaction, there is no significant change: The value fluctuates between 2.5 and 2.9 in most months.
The percentage of transactions using SegWit is also relatively constant:
The chart shows the share of SegWit transactions over a one-year period. As can be seen, it fluctuates between 30 and 45 percent and has stabilized at this level since mid-2018. SegWit is a new transaction format that allows the size of blocks to be increased according to SegWit usage. With the current share of SegWit usage, the new average block size seems to be about 1.2 megabytes instead of 1.0 megabytes. This could already be calculated two years ago.
The one-year course shows once again that Bitcoin operates at the capacity limit. Although the limit has shifted slightly upwards over time, it cannot break through the new limit of around 1.2 megabytes. What is interesting about this chart is not only that the blocks have increasingly reached this limit in recent weeks and months, but that they are less and less than one megabyte in size. This means that the memory pool of unconfirmed transactions is emptied less and less.
Unconfirmed transactions and fees
Even today, we see a pool of almost 30,000 transactions waiting to be confirmed. This is illustrated by Jochen Hoenicke’s MemPool visualization:
If you want to know with which fees a transaction is quickly confirmed, you should look at the MemPool in megabytes and see how many megabytes of transactions are queued according to fees:
This chart shows that from 50 Satoshi per byte you have a very good chance of getting a transaction confirmed within a few minutes. This corresponds to about 60 cents for a normal transaction. This level is also confirmed by a look at the average fees per transaction:
On average, the fees have recently reached one dollar. It becomes a little less if you look at the median instead of the average. The median is the value that applies to most transactions. It is less sensitive to falsification by outliers upwards and downwards. The most frequently paid transaction fees are currently around 60 cents.
The transaction volume
As an absolute number, however, transaction fees are relatively meaningless. In order to be able to classify them, you need to know how high the amounts sent through transactions are. Apart from that, this is perhaps the most exciting question. The value of Bitcoin is not only measured by how many transactions there are — but also how much money is processed over the network.
However, this question is much more difficult to answer than one might think at first glance. One could, of course, start by simply adding up all the outputs of all the transactions. The result would look like this chart of Blockchain.info:
Between one and two million bitcoins are moved per day. The fluctuations are enormous. If we were to look at this in euros, this would result in a daily transaction volume of five to ten billion euros, which would be quite a considerable figure.
It doesn’t work that way, though. The vast majority of transactions have several outputs. In the simplest case, one of them goes to the recipient and the other to the sender as change. Exactly determining which output plays which role is impossible in most cases. Therefore, one can only estimate, as Blockchain.info does, how much the daily amount sent by Bitcoin is. This chart shows the estimate in dollars:
As we can see, the volume has fallen by about 90 percent and is moving between 300 million and one billion dollars a day. An interesting — and somewhat sobering — observation is that volume has been stagnating for about a year. Neither the increase in the number of transactions nor the price is reflected in it. Depending on how solid this estimate is, it may, therefore, be too early to call a definitive halt to the bear market.
At BitInfoCharts.com we can also see the average value of a transaction — although I don’t know if they’re trying to exclude exchange fees here. The chart shows that on average 15,000 to 25,000 dollars are sent per transaction, which makes the fees of 50 cents to 1 euro absolutely irrelevant.
However, here too the average is a rather unreliable figure, which is extremely distorted by outliers — such as transactions worth several million dollars. Therefore, the median should be a more meaningful category.
Here we now see values between 100 and 200 dollars, with which the current fees are not quite trivial, but also not too serious. It is interesting to note that the median not only did not arise in the course of the past year but tended to fall. If Bitcoin’s future lies in being a network for the transfer of large stocks, this chart may also suggest that there has been no significant turnaround towards a bull market.
All the data we’ve looked at so far only shows what’s happening on the chain. In fact, however, off-chain mechanisms like the Lightning network are taking an ever-increasing share of transactions. Since these transactions do not happen on the blockchain, they are not transparent. This makes it difficult even to speculate about how high their volume is.
The only clues we have are again “on chain” — the transactions that open or close Lightning Channels. We can derive some statistics from it. For example, P2SH.info shows the number of Lightning channels and the Bitcoins in the Lightning network.
This chart, too, is not exactly an indicator of a turnaround. Rather, it shows that both the number of Lightning channels and the Bitcoins stored in Lightning have been stagnating for a good month. This is confirmed to some extent by a chart for the number of Lightning nodes. After all, an increase from 4,000 to 4,200 nodes can be seen here in the course of the past month.
Finally, we look at the two cores of the Bitcoin infrastructure — the miners and the nodes. Let’s start with the miners. The main chart for this is the Hashrate: The number of hash operations that the miner network performs per second.
Here we can see that the Hashrate has remained relatively stable this year. It follows the course slightly, but otherwise seems to be relatively saturated and moves between 40,000,000 and 50,000,000 Terahash. A terahash corresponds to one trillion hashes, i.e. a number with 12 zeros. This means that the network calculates 40–50 trillion hashes per second — an unimaginably high number.
The fact that this number does not increase more strongly in view of the upward trend in prices in recent months indicates a certain saturation. The miners seem to have become cautious about investing more; at the same time, the stable curve indicates that there has been no technical progress in recent months to produce more hashes per dollar invested.
The producers of the Hashrate — the miners — are organized in pools. The landscape of the pools is as decentralized as probably never before:
Looking at this diagram, statements that Bitcoin mining is centralized may turn out to be misleading. Bitcoin mining is extremely decentralized. No pool accounts for more than 20 percent of the Hashrate. Even if you add BTC.com and AntPool together — both belong to Bitmain — the largest mining conglomerate is barely more than 20 percent. It should also be very pleasing that more than 13 percent of the Hashrate comes from unknown sources.
Now to the part that is most important for many Bitcoin: The Full Nodes. According to earn.com, there are currently almost 10,000 Full Nodes.
However, this page only captures the full nodes that are open on their ports and thus open for incoming connections. Further, it shows only the nodes present in a moment. The total number of nodes used by Bitcoin users is therefore likely to be significantly higher. An estimate by Bitcoin core developer Luke Dashjr accordingly comes to just under 100,000 Bitcoin full nodes — although I find it difficult to judge how valid this estimate is.
The Earn.com charts, however, offer even more. For example, they show that the number of full nodes has remained relatively stable over the last two years. Although it is currently somewhat lower than a year ago, it is significantly higher than two years ago. The reason for this may lie in increasing awareness of the importance of full nodes in the scene as well as providers of full node devices such as Casa or Nodl.
No less interesting is to see which versions the full node operators are using. On the one hand, the chart of Coin Dance shows an almost overwhelming dominance of the Bitcoin Core software.
On the other hand, we notice that the node operators update quite disciplined. The majority uses the latest version of Bitcoin Core. However, the variety of versions is greater than ever before, and a not inconsiderable number of Full Nodes use versions that are a year or older.
Finally, we can see in which countries of the world the Full Nodes are operated:
Not surprisingly, the USA comes first with a good 25 percent of full nodes. Less expected, however, was that Germany would immediately follow with almost 20 percent of all full nodes. On the one hand, this is probably due to the fact that Germany is the strongest economic power in the EU and there is a pronounced interest in technology here. On the other hand, however, many international users are likely to use German cloud providers — such as Hetzner — which have a considerable bandwidth at the large Internet hub in Frankfurt.
I hope you liked my article. Feel free to comment and let us discuss your opionion. You can also read and support this post on (Medium)[https://medium.com/altcoin-magazine/the-26-most-important-charts-about-bitcoin-36e4d7f33164?utm_source=cryptoconsultant-blog]. There is also a possibility to subscribe to my newsletter to get weekly updates about hot posts.