Despite Negative Price Action, Positive Fundamental Growth of Bitcoin Recorded in 2018-19

31 Jan, 2019 Updated 14 May, 2024

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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on X at @nivishoes or mail him at nivesh(at)coingape.com

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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Fundamental Growth of Bitcoin

The chart suggests that the rise since June 2018 in the transaction volume of Bitcoin has been steady. Despite the adverse price action since November 2018 dragging the price from $6400 levels testing $3200 level as the bottom, the transaction volume is on a consistent rise.

If we neglect the isolated incident of an unprecedented rise and a rather unusual crypto-activity in December 2017, the price comparison of the above mention period also reveals fascinating similarities. The price during Q3 of 2017 was hovering the $3000 – $4500 range. Moreover, during the last two quarters of 2017, the concerns regarding scalability had haunted the BTC transactions. Due to the increase in volume, the transaction fees reached an all-time high and the time taken to incorporate blocks exceeded 10 minutes.

SegWit and Lightning Network (LN) Improve Scalability

The adoption of SegWit and Lightning Network in the Bitcoin has improved the transaction capacity of Bitcoin. The same number of transactions per block recorded during July-September 2018 are being solved in a considerably lesser time. In January 2019, a cryptocurrency independent researcher Kevin Rooke highlighted a significant improvement in Bitcoin, I.e., reduced transaction fees to 2015 levels.

Bitcoin tx fees just hit their lowest level in over 3 years!

Jan 1, 2019:
Median Bitcoin tx fee = $0.02
Total transactions = 234,576

Oct 13, 2015:
Median Bitcoin tx fee = $0.02
Total transactions = 134,741 pic.twitter.com/HjNUO4ktnj

— Kevin Rooke (@kerooke) January 4, 2019

Despite varying apprehensions, delayed regulations and price drop affecting Bitcoin, the use and transaction capability of Bitcoin keeps on improving. January 9, 2019, marked the tenth anniversary of Bitcoin. Despite the price fluctuations over the years, the graph of Bitcoin Price on a logarithmic scale implicates consolidation and long-term HODLing. These indicate sound technical and fundamental growth for Bitcoin undeterred by the adverse price action.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.