While many continue to focus on Bitcoin’s price, its network has set a new record in its hourly USD transaction volume for the first time in history, the network processed a total of $8.9 billion in on-chain transactions in a single hour on Dec 4th.
In the last two years, Bitcoin’s daily transaction volumes have seen massive growth, increasing from a mere $200 million in 2017 to more than $1 billion at the beginning of this year.
Not only is there increased transaction volume, but the transaction fees on the bitcoin network remain impressively low partly due to lightning network adoption amongst major exchanges which helps avoid network clogging.
BAKKT real BTC futures continue to see new records while traditional markets begin to see an overstretched bull run, things are looking good for storage of value hedges such as Gold and BTC in 2020.
An eye-catching 11 million Bitcoins haven’t been moved over the past year, hinting that holders were not ready to sell at 2019’s bottom nor at its highs which only brings the value higher as demand increases.
Bitcoin is a peer-to-peer network, and its strength ultimately derives from its users. In a parallel financial system, Bitcoin is proving to be a highly resilient form of money while other currencies and economies see more uncertainty than ever before with world powers in trade wars along with the separation of massive unions.
Generally, when the economy is in a contracting phase, the central bank acts as the lender of last resort. The institution steps in to save banks from falling behind in meeting their debt obligations.
Drawing a comparison to Bitcoin as a financial system, when its price starts falling, buyers disappear and the selling activity accelerates as investors panic sell. When the negative feedback loop of a crisis of confidence occurs, there are two groups that contribute to a reversal of sentiment – holders of last resort and buyers of last resort.
The buyers of last resort will be critical to stop the prices from falling and break the negative cycle.
At what price level buyers start stepping in is unknown, but judging on past cycles Bitcoin has proven to be extremely resilient with every cycle more users joining the group of last resort holders.
BITCOIN BTC Bullish Crossover EVERYONE Is Overlooking! by TradersProfitClub
