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BTC Price Aside, Fundamentals of Bitcoin booming



"Do not let the [Bitcoin] The price distracts you "

Ardent Bitcoin defends Anthony Pompliano, better known as "Pomp" in the cryptosphere, recently took his well-followed Twitter soapbox to emphasize the fact that despite the fall in prices of BTC, the fundamentals of the network that supports the good are undoubtedly strong expansion.

Citing a recent episode of Off The Chain, a respected and criptocentric newsletter directed by Pomp, the former employee of Facebook and Snapchat has simply stated that "Bitcoin has become stronger", while the same BTC has fallen from the historical maximum of Today from $ 20,000 to $ 4,100 (80% decline).

Pomp added that although the mainstream media have prematurely proclaimed that "cryptocurrency is dead!" And / or a Ponzi scheme, these cries for a fatal blow to Bitcoin are nothing more than an observation at the surface level, rather than a logical analysis. As put by the partner Morgan Creek Digital, well known in the cryptosphere for its pro-cryptic rhetoric against the bank:

Fortunately, nothing could be further from the truth. The fundamental drivers of the decentralized technology network are actually growing.

Bitcoin Tx fees fall, like barriers to counting transactions

By compiling and aggregating a list of "key data points", the industry insider drew attention to relevant indicators that indicate that the underlying Bitcoin fabric is inflating rather than being correlated with prices.

The number of users on Blockchain.com, for example, exploded from 10 million at the end of 2016 to 32 million today, an incredible growth rate, even for the most innovative industries. And because the number of portfolios has increased, even the total number of transactions with Bitcoin has increased by 33% in the last year. This, of course, can be attributed to the use of the asset for payment and speculative purposes, along with the increased popularity of Segwit, which facilitates the higher tx / s limits.

Pomp also drew attention to the "number of fast-growing transactions, excluding popular addresses (especially exchanges)", indicating that Bitcoin found itself actively used in innovative systems or via payment networks.

And contrary to popular belief, through all of this adoption, the average BTC transaction rate continued to decline, with BitInfo indicating that this statistic dropped from $ 52 at the end of December 2017 to just $ 0.6 today. As noted in a recent report by Ethereum World News, a "whale" recently sent over $ 600 million to $ 7 of taxes (which they paid in excess).

In reality, however, already affordable commissions are actually much smaller, with blockchain.com currently citing a fee of $ 0.06 for transactions through its service, a commission that is almost negligible except in microtransactions.

The mining ecosystem, node remains strong

Despite the recent decline of the hashrate seen on the Bitcoin network, from a long-term perspective, everything is perfect and dandy, emphasizing that the hashrate has quadrupled only in the last year. Moreover, from a logarithmic point of view, the recent decline is only a drop in the bucket.

Ending his analysis, calling attention to a less known indicator, Pomp has brought out the number of active nodes of Bitcoin, emphasizing that this figure has increased by 98% in the last two years to 10.510.

Bearing this in mind, Pomp explained that this innovation is not going anywhere, adding that traders should not be distracted by noise (price), instead focusing on fundamentals. In short, as Pomp noted:

Although (BTC price) is important, it is not an important measure of future value. The underlying fundamentals for the blockchain seem to grow stronger despite the fall in the current price … Bitcoin is not going anywhere.

Pomp Lauds Crypto On CNBC

This recent advocacy for this nascent industry comes just days after Pomp took over to Squawk Box of CNBC, a highly anticipated segment of financial markets, to hit Bitcoin critics.

The Morgan Creek representative has exclaimed that Bitcoin is the most secure transaction transaction level in the world, so the value in BTC will always exist. He added that cryptocurrencies as a whole represent the best asset class in the last decade, even ousting the US stock market, which has been in its longest and most important run in recent decades.

Title Image Courtesy of Marco Verch Via Flickr




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