Bitcoin'S Rocket Start in the Crypto Year 2020: A Look at the Fundamental Data

January 16, 2020

2020 is less than 3 weeks old and Bitcoin is already welcoming the new year, which is already known by many as “THE crypto year”, with a new price rally.

The mother of all cryptocurrencies was able to achieve an increase of almost 15% in the past 5 days and even tested the $ 9,000 mark on the night of January 15th.

CNN rates Bitcoin as the best investment of the last decade - what will the next decade look like?

Since the legendary crystal ball does not exist, it is always worth taking a look at Bitcoin's fundamental data and they are currently better than ever:

While the Bitcoin price recovered last year and even increased by around 100%, the fundamentals of coin number 1 developed better than ever before and even cracked new records almost every day.

Assuming that the price of an asset will always approach its fundamental value in the long term, quite a few experts and analysts expect a massive breakout in the price within the next 1 to 2 years.

Bitcoin's fundamentals 2019 stronger than ever

Despite the excellent share price development in the past year, other numbers cause even more sensation:

The most important fundamental values of Bitcoin were actually stronger in 2019 than ever before. Particularly noteworthy are the transaction volume, the number of transactions and the hashrate of the entire Bitcoin network.

As the crypto analysis company "TradeBlock" announced, more value (converted into USD) was transferred in 2019 than ever before in the history of Bitcoin and Co.

"The aggregated annual Bitcoin transaction volume on a USD equivalent basis reached an all-time high in 2019."

These figures not only confirm the growing dominance of Bitcoin, which is currently stable at over 67%, but also show that it is actually used as a medium of exchange.

The development of the number of Bitcoin transactions paints a similar picture:

In the strongest month of May, almost 12 million transactions were sent through the Bitcoin network, which even exceeds the previous all-time high of almost 11 million transactions in December 2017.

Particularly bullish is especially true the view of the current hashrate in the network, which in the past has always proven to be a reliable indicator of upcoming price and market movements:

The hashrate was able to reach new heights almost every day in the past year, and an end to this development is not yet in sight.

The hashrate reached its next all-time high of almost 121 EH / s (= 121,000,000 TH / s) on January 7, 2020. This shows that the miners, who are known to keep the Bitcoin network running, are very optimistic about the future and are investing in hardware in order to be able to put more computing power into the network and ultimately make it even more stable and secure.

Rocket launch 2020: More activity including a course rally

Not only with regard to the course, but also the described fundamental data, Bitcoin is following this successful course of 2019 more than confidently in the first days of the new year

The activities on the Bitcoin blockchain were already shining in the first week of January: the number of transactions rose by 5% within just one week, the transaction value by a quarter and the number of active addresses by around 7.63%.

In this sense, it remains to be seen with excitement whether Bitcoin will manage to become the best asset in terms of price development again in this decade and to beat all traditional asset classes such as gold, real estate, stocks or bonds.

The strong development of the most important fundamental values, especially Last year and the very good start in 2020 are definitely more than optimistic and give the impression that Bitcoin is already positioning itself for a new decade with strong performance.