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Bitcoin Network Grows With $2 Billion BTC Moving Daily

There are several measurements of the health of the bitcoin network. Hash rate is probably the first that comes to mind but daily volume is another indicator of how successful the system has been.


Govts and Banks Cannot Stop Bitcoin

Bitcoin was spawned by a movement dedicated to the freedom of financial oppression by central banks and governments. Personal spending power is governed by bankers and politicians, and in a world where state fear is increasing along with terrorism, capital controls will become more commonplace.

People are being restricted on how and where they can move their own money. The bad few have changed everything for the good many, and ever invasive new money laundering and monitoring regulations affect everyone.

Very few countries in the world allow their citizens to move their own money at free will and most will actively monitor bank accounts whether suspicious or not. The state controls the finances, not the individual.

This is the problem and the answer has become clear in recent years. Bitcoin provides a decentralized form of currency that can be moved peer-to-peer without government intervention. At the moment it is early days in the industry and many are still reliant on centralized crypto exchanges that can suppress that freedom if necessary.

The bitcoin network has grown to such an extent that an average $2 billion worth is being transferred every day. Industry observer ‘Rhythm Trader’ has acknowledged the true power of bitcoin.

$2,000,000,000 worth of bitcoin are moved, on average, every single day using the network. No government, bank or third party had to verify these transactions, nor could they have stopped any of them if they wanted to. The true power of bitcoin.

The power that this network is capable of is just one aspect of it. Yes, bitcoin can be truly disruptive and this is what governments fear. The escalating trade war between the US and China is a prime example as both governments want to devalue their own currencies to outdo their opponents.

Bitcoin cannot be devalued unless it is perceived to be worth less by those that trade and hold it. The opposite is likely to happen however as global economic woes deepen. Scarcity is another aspect of bitcoin which was coded into it from the genesis block. Economist Misir Mahmudov took this philosophical view:

Time = currency of life
The key property of time is scarcity
The only thing that shares this quality is Bitcoin

Food for thought.

Will bitcoin continue to grow as world economies crumble? Add your thoughts below


Images via Shutterstock, Twitter @misir_mahmudov, @Rhythmtrader

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Led 25

Bitcoin Hash Rate exceeds 1 EH/s For the First Time

Source: bitcoin

Hash

January 25, 2016 – For the first time Ever, The bitcoin network has exceeded one Exa Hash/s, or approximately 10.8 ZettaFLOPS per second, according to bitcoinwatch.com’s aggregate metric. This makes the bitcoin network around three-hundred-thousand times more powerful than the world’s fastest supercomputer, the tianhe-2 — clocking in at ~34 PetaFLOPS, and over 43 thousand times faster than every supercomputer on the TOP500 list combined. In theory, the network could be repurposed to run a neural net AI about eleven times as powerful as a human brain.

Also Read: Ethereum’s Market Cap Takes the Number Three Spot

Bitcoin Miners Cooperate on a Massive Scale

This unprecedented amount of hashing power also makes Bitcoin the largest distributed computing effort by far, dwarfing altcoins, folding@home and BOINC in scale. The network seems to be modeling exponential growth since it’s inception,  in contrast to mainstream media coverage suggestion that “the death of bitcoin” is at hand.
The network metrics behind the blockchain are a much more important indicator of the health of a distributed currency than media coverage or value speculation because it represents real, physical investment. The number of people mining and using Bitcoin is increasing massively in the long term, regardless of any short-term issues with the specification or development that arise. The cost-prohibitive equipment required for mining can be repurposed with little effort, but Bitcoin mining is and will likely remain the optimal use case.

 

The value of any currency relies on the network effect – a concept in economics that states the intrinsic value of particular goods increases with the number of people using them. As bitcoin is by far the largest single computation network in existence, and we have yet to see a growth ceiling as time goes on, people betting on its failure would to well to remember that barring a global ban, it’s use, adoption, and real value will only continue to rise if long term data is to be believed.

 

Want to weigh in on the significance of the Bitcoin network’s size and power? Discuss it in the comments!


Title Image courtesy of Dennis van Zuijlekom

The post Bitcoin Hash Rate exceeds 1 EH/s For the First Time appeared first on Bitcoinist.net.

Bitcoin Hash Rate exceeds 1 EH/s For the First Time

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