‘Market Will Catch Up’ – Bitcoin Network Statistics Show 2018 as ‘BUIDL’ Year

03 Jan, 2019
by Arthur Sillers
‘Market Will Catch Up’ – Bitcoin Network Statistics Show 2018 as ‘BUIDL’ Year

Jameson Lopp, a notable crypto commentator and creator of crypto analysis website statoshi.info published a Medium post with a statistical analysis of 'the rollecoaster of the adoption life cycle' from that Bitcoin is seeing as 2018 rolls into 2019. Lopp shows that though Bitcoin is down in terms of market value and volume, in innumerable other, less obvious ways, Bitcoin as a platform is moving steadily upward and has never been in better shape.

The theme of his analysis is perhaps summed up in his appraisal that 2018 was both Bitcoin's worst and best year. The more metrics one looks at, the stronger the mixed signals are for Bitcoin's adoption.

Bitcoin's interest and exposure has never been higher. As Lopp point out, more and more countries continue to release surveys which show that most people know about Bitcoin, and more and more are interested in getting involved. In addition to that, academic articles written about Bitcoin (and cryptocurrency generally) have exploded and continue to grow.

While interest in crypto and Bitcoin in particular is at an all time high, Bitcoin is starting to run into its technical limitations. Lopp points out that transaction fees make the small day-to-day transactions which Bitcoin will need to enable in order to see real adoption unpopular. Furthermore, transaction speeds are simply not at a level which compete at alternative digital payment methods which are still tied to traditional finance. Nonetheless, Bitcoin saw the adoption of technical changes like Segregated Witnesses and the Lightning Network have already brought down rising transaction fees, and hopefully promise to enable the speeds required for Bitcoin to see real popularity.

Jim Radecki recently wrote that cryptocurrency needs to build up its infrastructure in advance of another wave of interest in order to keep traders and crypto users on board. Lopp points out that node operation is increasing in its cost efficiency, and mining is at an all time high.
There are notable problems which have become apparent, like the increase of some poor security practices, and a lowered barrier for a 50% attacker relative to economic interest. Obviously, of course, Bitcoin's value and exchange rate is down, but Lopp makes a tirelessly argued point that by many other networks, Bitcoin is being built steadily and consistently up.
Once Bitcoin begins (hopefully) to regain its value, people may once again pour in to the space to get involved. If technical fixes like SegWit and the Lightning Network can offer them the convenient, secure, and reliably convenient payment platform which many hope Bitcoin can be, the frustrations of 2018's market crash will be erased from crypto's collective memory.

Read more: 2019 might be the comeback year for Ethereum as it breaks through $150!

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