BBitcoin expert Anthony Pompliano, American entrepreneur, investor and veteran explained how Bitcoin which faced its greatest dip since April 2011 is actually growing and becoming stronger. Anthony,also known as Pomp, partner at Creek Digital Assets explained how the core of Bitcoin is still growing regardless of what the prices are showing. This is because the core of it is still growing and strengthening.
He showed that Bitcoin has a number of different characteristics and these prove that Bitcoin is becoming bigger overtime. In his analysis he wrote that, “Price is only one measurement of value for an asset. While it is important, it is not an important measurement of future value. The underlying fundamentals for the Bitcoin blockchain appear to be growing stronger despite the decline in the current price.”
Pomplianotweeted with a link to his blog post where he has shown his 7 parameters analysis to support and prove his opinion:
1- Bitcoin wallet number has continued to increase –The amount of wallets has increased by 33% and the number of users has grown from 10 million to an incredible 32 million.
2- Cost per transaction has been declining – On an average the cost per transaction has declined. The chart shows how the miners revenue divided by the number of transactions has decreased
3- Increase in number of transactions – The number of transactions has increased from 280 million in December 2017 to 360 million in a year.
4– Rise in the number of confirmed transactions – The number of transactions has increased since February 2018
5– Number of transactions per day has increased – The number of transactions per day not including popular addresses has also increased. The volume does not include popular addresses for eg Binance which has a hot wallet. A hot wallet contains Bitcoin stored of all their users so a single address has to hold, store and manage their user’s address.
6– The hashtag rate has quadrupled – Despite the huge downfall of Bitcoin the hashtag has quadrupled on a linear scale and continues to be doing well on a logarithmic scale.
7- 98% increase in number of Bitcoin nodes in the last two years – Total number of bitcoin nodes has been growing very strong. A bitcoin node is the full synced wallet that can be hosted by an individual or any service like exchange, wallet or any e-commerce using bitcoin.
Through his data it is clearly visible that Bitcoin is fundamentally improving and it will be a matter of time before this will be reflected in the prices as well.
Pomp explained how despite the prices Bitcoin is growing. “Bitcoin’s fundamentals are strengthening. Don’t let the price distract you. The best performing asset in the last 10 years isn’t going anywhere.”
With Christmas round the corner Pompliano believes that the best present for people to give their loved ones is in fact Bitcoin. “Want to give your kids a life changing gift? Buy them Bitcoin and explain why it’s important. They’ll thank you later.”Bitcoin would be a great gift for children especially in the long term. Many experts including John McAfee, Thomas Lee and Tim Draper are bullish in the next few years.
Bitcoin that fell from $20,000 in December 2017 to $3,500 some days ago shows a price decrease of more than 80%. However, some cryptocurrencies lost more than 95% of their price. Pomp emphasised the fact that the fundamental drivers are continuously growing. He has taken different data points that are important and has successfully shown how Bitcoin’s fundamentals continue to grow despite the new and media.
At this moment most of the media is reporting on Bitcoin being dead but that is far from the truth since the fundamental basic network of Bitcoin is growing. The hashtag rate has been decreasing due to an increase in cost miners have to face and a reduced price of Bitcoin. Only the more skilled miners are able to keep up.
Pomp predicts Bitcoin may fall to 85% when it reaches around $3,000 but it will then stop. The selling pressure occurred so that the prices could actually reduce the prices since Bitcoin was way overpriced. The token will have more support in 2019 from several financial institutions.