As prices of Bitcoin continue to go down, the confidence of crypto investors is shaken. The mainstream and social media are rampant with a post that says “Bitcoin is Dead”. While the prices may be at all-time low but fundamentals of Bitcoin are getting stronger day by day. In a recent post compiled by Morgan Creek’s Anthony Pompliano puts forward key fundamental data points which shows Bitcoin fundamentals are rather improving.
Bitcoins fundamental drivers of the decentralized technology network are actually growing.
Pompliano tweeted with a link to his blog post where he has collated data points that shows key seven parameters where Bitcoin has shown improvement and continues to grow.
Bitcoin's fundamentals are strengthening. Don't let the price distract you.
The best performing asset in the last 10 years isn't going anywhere.https://t.co/avY2WrA1q0
— Pomp 🌪 (@APompliano) November 30, 2018
In the post Pompliano, mentions that
“Price is only one measurement of value for an asset. While it is important, it is not an important measurement of future value. The underlying fundamentals for the Bitcoin blockchain appear to be growing stronger despite the decline in the current price.”
These seven parameters include a number of wallet users, cost per transaction, the total number of transactions, confirmed transactions, transactions per day excluding the popular addresses, hash rate and the number of bitcoin nodes. On each of these parameters, according to the data, Bitcoin has had a favourable number. Picking it from the post
- The number of Bitcoin blockchain wallet users continues to increase dramatically over the last two years.
- The cost per transaction continues to decline through 2018.
- The total number of transactions is increasing over the last two years.
- The number of confirmed transactions per day has increased since February 2018.
- The number of transactions per day excluding the popular addresses is also increasing through 2018.
- On a linear scale, the hash rate has approximately quadrupled in the last year or so. The hash rate also continues to look healthy on a logarithmic scale.
- There has also been a 98% increase in the number of Bitcoin nodes running over the last two years, according to Bitnodes.
Clearly, the compiled data shows Bitcoin is improving fundamentally and its only matter of time the prices too would start reflecting those. Like Pompliano says “Don’t be distracted by the noise. Focus on the fundamentals. Bitcoin isn’t going anywhere.”
Is data compiled by Pompliano enough to show Bitcoin is growing or are there any more facts that are still uncovered? Do let us know your views on the same