Increase by more than 460%, bitcoin makes more “millionaires”?

The year 2020 is undoubtedly a memorable year. The sudden outbreak of the new coronavirus has brought the world to a standstill, and the economies of various countries have also faltered. For the cryptocurrency industry, the use of cryptocurrency in various institutions has increased dramatically in the past year, and the rapid rise of defi (decentralized Finance). Within this year, bitcoin has once again become the focus of attention. Record breaking prices and the acceptance of more large enterprises have once again ignited the ambition of global blockchain developers. At the end of 2020, we might as well use numbers to review bitcoin’s restless performance in this troubled year. As for cryptocurrency, the number of search engine queries often represents the popularity of cryptocurrency and even the whole cryptocurrency market. According to Google Trends, global search for bitcoin has risen from 45 in January to 100 last month. But it must be stressed that even so, bitcoin’s Google search volume is still less than a quarter of its all-time high (January 2018). In November 2020, bitcoin search volume reached a periodic peak, but it was still only a quarter of the historical peak. (image source: Google) Nigeria, South Africa, Australia, Switzerland and Ghana are the top five bitcoin search engines this year. Nigeria has become the world’s top bitcoin search engine in 2020. (image source: Google) the most popular related queries this year are “bitcoin price”, “bitcoin halving”, “bitcoin dollar”, “bitcoin stock” and “bitcoin dollar price”. The number of searches for “bitcoin price” alone is higher than that of the other four items combined. Topics related to bitcoin are equally hot on reddit in 2020. Among them, / R / bitcoin sub forum broke through 1.8 million users in December 2020, far exceeding 1.2 million users in the previous year. Similarly, since the beginning of this year, the number of comments on the sub forum has also more than doubled, equivalent to about 20 times the average daily number of comments on / R / Ethereum. The number of related papers has increased. Generally speaking, in terms of the discussion heat of academic papers, the whole academic community will pay more attention to bitcoin and blockchain technology in 2020. Currently, there are 97800 articles about bitcoin in Google Scholar, of which 15800 were published in 2020. Correspondingly, as of December 2020, the number of articles citing blockchain technology was 205000, of which 33800 were published in this year. In 2009, there were only 371 academic papers on bitcoin and 140 on blockchain. In addition, the number of articles mentioning bitcoin in the cryptography eprint archive, which is used to archive papers related to cryptocurrency, has also grown rapidly. By 2020, there will be 20 new papers on bitcoin, with a total of 166 at present. However, the peak of bitcoin papers published on cryptography eprint is still in 2018, with 26 related papers published in that year. Third largest active cryptocurrency bitcoin is currently the third most active cryptocurrency (activity is measured by the number of project submissions on GitHub repo), according to cryptomiso. Only two cryptocurrencies surpass bitcoin in terms of activity, one is chainlink (link), the other is lisk (LSK). The former is a blockchain based Oracle network, while the latter is a platform for launching decentralized applications (dapps). Bitcoin GitHub repo is currently the third most active cryptocurrency. (image source: cryptomiso) bighub repo of bitcoin currently has more than 100 contributors, with a total of 2632 submissions; chainlink has 3592 submissions (62 contributors) and lisk has 3453 submissions (63 contributors). Nevertheless, in terms of the number of stars and the number of followers, the bitcoin project is still far ahead. This means that the popularity of bitcoin repo continues to lead a number of cryptocurrency projects. Regaining market dominance in 2020 is the strongest year for bitcoin’s price performance since its birth. This year, the cryptocurrency reached an all-time high, more than a third higher than its 2017 peak. The market value of bitcoin actually reached this high before the price broke record, because there are more bitcoin in circulation than at the last high price. Bitcoin’s price surge is largely due to the recovery of the stock market and the surge in institutional investment throughout the year. Currently, funds such as grayscale and square already have considerable reserves of bitcoin assets. Throughout 2020, the dominant position of bitcoin in the market will fluctuate greatly. According to the data released by coinmarketcap, bitcoin’s market dominance will be between 56% and 69% in 2020. Bitcoin prices were lower than other counterfeit currencies from January to September this year, but the surge in the last quarter succeeded in making up for most of the losses. Ivan liljeqvist, the host of Ivan on tech youtube, once made a judgment that “the development trend of counterfeit currency in 2020 will be good, and the dominant position of bitcoin has dropped by 5%. This may be just the beginning, and with the continued development of Shanzhai coin, it is expected to surpass bitcoin in 2021. In the new year, bitcoin’s dominance is expected to return to less than 40% of what it was in 2018. ” Now it seems that this prediction is not very reliable. The transaction is volatile. In December 2019, the single transaction cost of bitcoin has risen to below $55. Such high transaction costs have completely deprived bitcoin of its ability to handle micro transactions, which has triggered heated discussions among the observer community. But after that, the situation has improved significantly. Throughout most of 2020, the average transaction cost of bitcoin has remained below $2. This is mainly because cryptocurrency exchanges began to use more bulk trading methods, and with the decrease in transaction costs, the use of segwit addresses began to rise rapidly. Since the beginning of the year, the average daily trading volume of bitcoin has increased slightly, but the fluctuation is still obvious throughout the year, peaking at 330000 in March and reaching a low of 264000 in April (possibly related to the “Black Thursday” Wall Street crash). Bitcoin shows a huge trading volume fluctuation throughout 2020. (photo source: blockchain. Com) despite the ups and downs in the number of online transactions throughout the year, the total amount of online transactions this year has been on the rise, climbing from $730 million on January 1 to $3.4 billion on December 18 – the highest since January 2018. At present, the average daily trading volume of bitcoin has increased more than three times. (photo source: blockchain. Com) what’s more, although the volume of transactions on the chain continues to grow, the average transaction cost in 2020 will hardly exceed $10. With the growth of bitcoin prices, the total amount of transactions this year has also reached a new record high. According to messari, the monthly peak trading volume of bitcoin was $88.5 billion in 2017, compared with $114 billion in November this year. The data compiled by messari is only the trading volume data of the top ten high reputation exchanges approved by bitwise investment institutions, and the actual amount may be higher. “Bitcoin will have a parabolic growth in 2020, with an increase of more than 170%, which also consolidates the position of bitcoin and even the cryptocurrency market as a whole, making it an important asset class accepted by major investment institutions around the world,” said Todd Crossland, CEO of coinzoom. With the impact of global currency devaluation, bitcoin prices will continue to rise. In 2021, bitcoin prices are likely to rise further to $25000 or even $30000. “ In November 2020, the real monthly transaction volume of bitcoin reached $116 billion, a record high. (image source: messari) throughout 2020, the deployment of bitcoin ATM has also increased significantly, and its growth rate has set a record high. According to the data released by coin ATM radar, there are at least 13400 bitcoin ATMs worldwide, far higher than 6039 a year ago and 460 five years ago. Bitcoin ATM growth ushered in a historical peak. (source: coin ATM radar) Most of these ATMs are located in the United States, and the number of ATMs in the United States alone is up to 10848. In Europe, the number of bitcoin ATMs has also increased since 2019, from 943 to 1251 in the past two years. The reason for this difference may be due to the crackdown on the AOL cryptocurrency exchange, forcing people to use alternative solutions such as bitcoin ATM. To create more millionaires, we can imagine that with the increase in the number of transactions and the amount of transactions, the number of effective bitcoin addresses per day will also increase throughout 2020, but it will not break the record high set in December 2017. The number of unique addresses has increased from 480000 at the beginning of this year to more than 700000 during the peak period in early December. This year, the average number of active bitcoin addresses has increased by nearly 50%. (photo source: blockchain. Com) in addition to the increase in activity, the number of millionaires created by bitcoin is also soaring. According to bitinfocharts, there are more than 67000 bitcoin millionaires worldwide, up from 25000 last month. Nevertheless, the vast majority of bitcoin addresses have amounts of only 0.001 to 0.01 bitcoin; only 1.7% of addresses have more than one bitcoin. Since December 2020, users must hold at least 1 to 10 bitcoin coins in order to enter the 1% bitcoin high-income group. Lightning network is developing rapidly, but it is still trapped in the deep pool of centralization. Lightning network has long been regarded as an important solution to solve the bitcoin expansion problem and eliminate the high cost caused by transaction processing load. Since the debut of the first lightning network main network product in 2018, the number of nodes and channels running on the network has experienced a significant growth – only a temporary decline in the middle and late 2019. The total number of nodes on the lightning network has increased from 4923 in January this year to more than 8000 in December this year, not only reaching the historical peak, but also increasing by more than 60% in the year. Similarly, the total capacity of the network (that is, the sum of all the capacities on all channels) has also shown a parabolic growth since March this year, with the total carrying value of more than $24.7 million. The number of lightning network channels will increase slowly in 2020, from 27929 in January to 33483 on December 19, an increase of nearly 20%. In 2020, the number of lightning network nodes and channels, the overall network capacity and the average capacity of each channel will reach the highest level in history. Within this year, lightning network business adoption rate also began to rise. Bitfinex was one of the first exchanges to support lightning networks, adding support for giant channels to help users quickly deposit large amounts of bitcoin. In addition, Kraken exchange also announced that it will increase support for lightning network in early 2021. Despite its rapid growth, the lightning network is still stuck in the mire of centralization. In other words, most of the bitcoin available on its network is still controlled by a small number of nodes. “As of the beginning of this year, about 10% of the nodes still control about 80% of the network capacity,” said vid gradisar, chief executive of newscrypto The development of bitcoin defi although the booming decentralized finance industry has been built around the Ethereum ecosystem for a long time, many projects launched in recent years have been able to introduce bitcoin into other blockchains as portfolio assets or packaged tokens. So far, the most popular is wrapped BTC (wbtc), the erc-20 token supported by bitcoin. As an erc-20 token, wbtc can be used with all kinds of Ethernet based difi protocols, including uniswap and compound. At present, more than 1.2 million bitcoins are locked in the wbtc. (image source: defi pulse) last year, the number of bitcoins packaged as wbtc increased by more than 4000%, and the corresponding value soared from $4.3 million in January 2020 to a peak of nearly $2.8 billion in December. “This is mainly driven by the rapid growth of DFI and uniswap,” iveo Georgiev, CEO of ADEX netowrk, said in an interview. While the wbtc is primarily a custodial role, it has also made some exciting advances, such as keep TBTC, which aims to pave the way for bitcoin’s minimum trust lending. ” According to data released by dune analytics, wbtc currently accounts for 80.4% of the token bitcoin market, while renbtc, the second largest competitor, only 11.9%. As in previous years, bitcoin’s hash rate reached its highest level in 2020, rising rapidly from slightly higher than 100 exahashs / S (EH / s) at the beginning of the year to 157.6 eh / s in October. As the value growth rate of bitcoin is higher than the network difficulty and hash rate, the profitability of bitcoin mining will maintain a stable improvement throughout 2020, from $0.155/day/th/s at the beginning of the year to the current peak level of $0.2/day/th/s. Year to date, bitcoin mining profitability has increased slightly. (photo source: bitinfocharts) Alejandro de la Torre, vice president of poolin, pointed out in an interview that “the bitcoin hash rate will soar in 2020, and we will grow from about 100 exahashes to more than 150 exahashes. This growth rate is impressive and represents a very high level of confidence in the special currency. The miners are expanding and building new infrastructure, and their participation is helping everyone in the bitcoin ecosystem to secure the bitcoin network. ” According to a report at the beginning of this year, China is still the main source of bitcoin hash rate, accounting for 65% of the total hash rate as of December 2020. The United States, Russia and Kazakhstan ranked second, third and fourth, accounting for 6% to 7% respectively. This advantage is mainly due to the fact that China has more mining equipment, lower power costs, and most ASIC manufacturers are located in Asia. China currently controls nearly two-thirds of the bitcoin hash rate. (source: Cambridge Centre for alternative Finance) the distribution of hash rates among different ore pools also changed significantly throughout the year. We can see several key points: has suffered from the collapse of hash rate share since the middle of this year; firecoin pool is becoming more and more popular; poolin and f2pool basically keep the hash rate share unchanged. Summing up, 2020 is undoubtedly a year for bitcoin to reach a high point in an all-round way. Bitcoin witnessed the most dramatic recovery in its young life, climbing from a low of $5000 to a record high of $28424.49 this year, up more than 460%. With the joint efforts of institutions, investment funds and retail investors, bitcoin has set new records one after another in the past 12 months and is expected to move further to a higher level in the last few days of this year. Although there are still numerous obstacles ahead, bitcoin, which is just 12 years old, is expected to become the first viable alternative asset carrier in addition to legal tender in various countries. We will witness the future together. Link to the original text: extension reading: reading 2020: protecting data security is inseparable from the integration and innovation of blockchain and multiple technologies – InfoQ follow me and forward this article, you can get learning materials ~ if you want to learn more, you can also go to the InfoQ official website to get the latest InfoQ information ~

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