With Bitcoin (BTC) continuing to reach all-time highs of more than $ 20,000, network fundamentals paint a different picture from its previous rally in 2017.
Three years ago, on the same day, Bitcoin reached its first all-time high of $ 20,000, posting up to 2,000% of this year’s gain. Bitcoin saw another price spike during 2020, as the price reached new full-time highs and peaked at $ 23,500 for the first time in history.
When comparing Taurus 2017 and 2020, one would think that December has a special significance for Bitcoin. After this coincidence, however, the shares vary widely in terms of institutional demand and level of adoption. Basically, Bitcoin’s bullish rally this year is not like 2017, especially when it comes to transaction fees.
Transaction fees fell by more than 90% in a bullish outlook for 2020
Bitcoin’s bullish growth in 2020 is significantly healthier in terms of transaction costs. According to Blockchain.com, miner transaction revenue – a calculation that also includes block rewards – was $ 130 in December 2017 and about $ 60 on December 14, 2020.
Initial transaction fees are much cheaper. According to monitoring resources like BitInfoCharts, the average BTC transaction fee decreased to $ 5 in December 2020 from $ 50 in 2017.
The contrast becomes even more pronounced when you look at total BTC transaction fees, which decreased from around 1,500 BTC on December 21, 2017 to only 70 BTC on December 14, 2020, according to Blockchain.com.
Some regular media have noticed surprisingly low BTC transaction fees recently. On December 13, an unknown user paid about $ 12 for a 32,253 Bitcoin ($ 628 million) transaction, Finance Magnates reported. Throughout 2020, BTC transaction fees will continue to rise. In October 2020, BTC’s transaction costs increased by nearly 200%.
Bitcoin hash has grown nearly ten times
The 2020 Bitcoin Rally also varies in terms of hash ratio – one of the most important Bitcoin accounts that indicates computing strength and overall network security, as well as resistance to attack.
According to Blockchain.com data, the BTC hash rate has grown steadily over time, with the total hash rate increasing from around 14 million TH / second in December 2017 to over 130 million TH / s in December 2020.
As Cointelegraph previously reported, Bitcoin’s hash rate changed dramatically in 2020. In early November 2020, Bitcoin’s hash strength jumped by more than 40% in two days after the October decline.
It should be noted that the increase in the hash rate can also be attributed to the more efficient mining facilities that have appeared in the past three years. Compared to miners in 2017, they produced about three times the hash per watt. However, the network is undoubtedly safer than it was at the same time in the rally in 2017.
The number of confirmed BTC transactions is increasing
As the adoption of cryptocurrency continues to grow day by day, the number of daily confirmed transactions has increased regularly every year. Despite the fact that BTC transaction fees are still much lower than it was in 2017, the Bitcoin network handles much more transactions than it did three years ago.
According to Blockchain.com, Bitcoin processed around 320,000 transactions on December 14, 2020, up from around 280,000 in mid-December 2017. The total number of confirmed transactions was recorded in May 2019, when BTC’s price began to recover after falling to a low of $ 3,000. .
In 2017, the number of unconfirmed transactions increased
The number of unconfirmed transactions on the Bitcoin network is another sign that Bitcoin’s bullish growth in 2020 is healthier in terms of underlying networks.
In the middle of BTC’s rally in 2017, around 120,000 transactions in the BTC network were fixed in mid-December. According to the latest data on Blockchain.com, the number of unconfirmed BTC transactions on December 16 was only 68.
As Bitcoin’s rally continues to gain traction, it remains to be seen whether the sustained uptrend will continue to maintain its positive trend in the underlying networks.