BITCOIN UTXO GROWTH HITS NEW ALL-TIME HIGH, BUT WHAT DOES IT MEAN?

Posted 02 January, 2020

UTXO GROWTH MAY SIGNAL COIN MIXING ACTIVITY

 

Each bitcoin operation can generate UTXO or “replacement”, which is then distributed to the replacement address. Jameson Lopp showed that deals with UTXO are now happening more often, with a clear uptrend in 2019.

*Picture from statoshi.info - https://statoshi.info/dashboard/db/unspent-transaction-output-set?panelId=6&fullscreen&from=1546354940579&to=1577718140579

What the UTXO levels indicate may be technical because they are reported by miners. Alternative explanations included the use of mixers. By mixing the coins, you can divide the coins into several small operations and combine them.

 

But the most bullish explanation is that small amounts of bitcoins are currently being used more often, but are becoming increasingly valuable. Thus, it seems that the number of used coins passing through the ecosystem is growing, and the need to change them is increasing. However, at current prices, the use of BTC is somewhat similar to 2018, which makes UTXO growth an even more mysterious anomaly. In addition, most bulky wallets are stored in coins, and the current surge in transactions stems from coins for trading and active use.

 

Bitcoin operations have grown almost constantly over the years, along with the wallets that have been created. But in 2019. Both small wallets and whale tanks in bitcoins have grown to 1000 BTC and above. Coin movements also responded almost instantaneously to market conditions, with remittances increasing as BTC prices moved in the short term.

BITCOIN INDICATORS EVOLVED IN 2019

Lopp, Bitcoin's maximalist, watched other indicators of Bitcoin development in 2019. One of the reasons why mining has grown into highly competitive industrial activity. In terms of network security, the Bitcoin protocol reached the highest level of resistance to attacks in November, and performance deteriorated last month.

"The amount of time it would take for an attacker with 100% of the current hashrate to rewrite the entire bitcoin blockchain dropped by 100 days due to the accelerating hashrate in 2019 but has recovered half of that recently. http://bitcoin.sipa.be/ " - wrote Jameson Lopp on his twitter account.

If, hypothetically, a miner has enough hash to match the current network, a complete redesign to register the entire blockchain will still take months. The scenario in the real world may not be viable, but it does show the potential of bitcoins.

Still, in 2019 mining industry has made impressive profits, an increase of 162%, and China has become a mining center.

Whatever the statistics, Bitcoin remains an asset that still reveals its price range as well as uses. The Bitcoin network has seen many anomalies ranging from intentional spam to secondary projects that create millions of small transactions for verification. There are also many new players in the Bitcoin space, ranging from startups to crypto-financials, and new whales can be created during trading.

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03 January, 2020 10:42

← IS BITCOIN SURGING BECAUSE OF TENSIONS IN IRAN AND THE MIDDLE EAST?

 

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02 January, 2020 10:38

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