Bitcoin is significantly and quietly re-gaining momentum. There has been a vast increase in the total transactions confirmed per day and the reached levels have not been of such magnitude since 2017. In that particular year, the largest cryptocurrency of the world surged in terms of its value and caused it to become a hot topic all over the world.
According to Campbell Harvey who is a finance professor at the Duke University, the reason for Bitcoin having a bubble year in 2017 was the large volume of transactions whose origin was in nothing else but pure speculation. With time Bitcoin had subsided, however, the recent gain in its momentum is an indication that there is indeed future for Bitcoin as a cryptocurrency.
The rise to previous levels
According to data that has been collected from Blockchain.com, the total confirmed transactions in Bitcoin per day had reached a tally of 328,417 on the 5th of February which is the first instance that it has achieved such a level since the beginning of the year.
At the peak of its value in the end of 2017, one Bitcoin was estimated to be valued at 20,000 dollars; however that valuation has dropped down to around 3,462 dollars these days. Along with the price crash in 2018, there had also been a fall in Bitcoin’s usage levels; however, there has been a steady rise to the previous levels.
Usability and not speculation
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The last time that there was a rise in the number of transactions, it was caused due to investor speculation. However, this time the rise is possibly due to how useful it has become. At the time when there was a significant jump in value in 2017, there was a limit of one megabyte block size which implied that there was a huge waiting period before transactions could be confirmed. On average this confirmation time was as high as 48 hours.
This has changed to an average of 15 minutes, even considering the rise in number of transactions. This has been possible due to the development in technology and this has helped make Bitcoin definitively more usable.
Developed technology and Bitcoin
SegWit was a policy change that had been agreed upon in 2017 that facilitates in rearranging transaction data to utilize the one megabyte limit in a more effective manner. Another technology that has been creating some news is Lightning Network which handles transactions in a manner that is away from the blockchain, securing them in a channel of payment until it is finalized and the final results get written in the blockchain as one.
The usage of Lightning Network would ensure that the speed is increased from the previous speed of 7 transactions in one second. For the purposes of comparison, Visa can tally in 2,000 transactions in one second globally, but the developers of Lightning Network have raised claims that it can handle transactions in the billions in one second.