Bitcoin: transaction number increases, while charges would be reduced

the In January, the number of Bitcoin transactions has won her one-year record high. BTC reached Figures as at the beginning of 2018. Some differences, however: The transaction fees and the average transaction amount is significantly lower.

Dr. Philipp Giese
12. February 2019BTC$3.637,43 0.63%part Facebook Twitter LinkedIn xing mail

unlike a trading volume, which captures only a speculative Use Case for a crypto-currency, can statements an analysis of the On-Chain transactions a little about the actual use of Bitcoins. A high number of transactions can be, for example, for a Revival of the Medium-of-Exchange-Narrative, while a few, but large transactions with the Vision of the Store of Value. In the January issue of the crypto-compass has been discussed about this connection, and various measurement associated with currencies, sizes, different visions behind Bitcoin and other Crypto.

February 2019 – a Lot of transactions with low fees

Currently, this view is worth it:

The continuous red line is for the transaction fees in US dollars, the value of which is read on the left axis. The pale red area describes the evolution of the average daily transaction number. It is clearly seen that the transaction like the fees, the transaction number is increased.

Batching or real Bitcoin adaptation? A glance at the data

A possible explanation would be that crypto-exchanges amplified by the Batching use. With Batching, the summary of several individual transactions is referred to a large. By such a summary of the transaction fee for each transaction is significantly less. An example of such transactions can be found here.

This hypothesis can however not confirm. About P2sh.info those interested can learn the share of the Batched Transactions:

the relative proportion of Batched Transactions is Applied. The bluer the area, the more transactions are bundled. The rich Red is for fully unbundled transactions, dark blue for the giants is bundled with 100 individual transactions.

Read also: Argentina: Public transport with Bitcoin payable

You can see that the above explanation cannot be confirmed. All Batches with more than three bundled transactions are collapsed in the year 2019. Instead, the share of transactions has increased with a maximum of two individual transactions.

Likewise, the average transaction value has declined. In the lower figure, the number in addition to the well-known, in Red the illustrated Transaction, the daily transaction applied to the volume in BTC (the latter in grey):

We see that the daily number of transactions rose, the volume is barely together with the Transaction. The average transaction size has fallen.

How is this to interpret? The main users of such batched Transactions are larger companies like Wallet providers or crypto-exchanges. The average Otto-Normal-consumer uses no Batching, because he wants to pay in the first place the money to a normal Bitcoin users. Of Exchanges and other large-Batching-setting organizations tend to be large transactions are expected.

Segregated Witness character for a greater adaptation?

The above two Plots contradict such an Interpretation. The behavior suggests that technologies other than the Batching to reduce the transaction costs. Segregated Witness, optimized, among other things, the size of transactions so that a total of more transactions can be grouped together in a Block.

in fact, the decline of the batched Transactions in the recent time could hang especially with the increased use of Segregated Witness together, as the following Chart shows:

Read also: Is Bitcoin dead? The the scene

so, It seems that Player in the Bitcoin network currently rather Segregated Witness as to bundled transactions says.

it Speaks well for a strengthening of the Peer-to-Peer Narrative in the Bitcoin Ecosystem? Not so fast. If that were the case, one would have to see a strong Increase of active addresses, which can be, unfortunately, on the Basis of the data confirm:

The number of active addresses is subject to a seasonal fluctuation, moving in August 2018, mostly between 500,000 and 700,000. On the Basis of these data and the presented Interpretation one would come to the conclusion that crypto-exchanges and other Big players rely on Segregated Witness, the actual use as a Medium of Exchange, is at least in the Peer-to-Peer area, not yet further progressed. The falling fees and increasing Lightning-adaptation, however, hope that this is only postponed.

data of Coin Metrics and P2sh.info

Blockchain and Fintech Jobs : looking for a new challenge? In our job Board your current job ads from the Blockchain and Fintech companies.