ID Theory Bitcoin Insights
19th August 2019
ID Theory is a London-based cryptoasset investment firm. Our Insights report provides the latest key macro as well as on-chain data for decentralised networks. If you would like to receive insights directly to your inbox, you can subscribe here:
MACRO
31st July - US Fed cut interest rates for the first time since 2008 (Red line).
5th August - Chinese Yuan slid below $7 (Blue line).
BTC and Gold
BTC and US 2 Year Treasury Yield
BTC and USD/CNY
BTC and EUR/CHF
Fundamentals
Google Trends
‘Bitcoin’
‘Crytocurrency’
Local Bitcoin volume
Local Bitcoin trading volume has remained high in both Argentina and Hong Kong. Argentina is seeing volume ~ $12m USD with the global volume on local bitcoins being ~$60m USD (20%).
Argentina
Hong Kong
On-chain Metrics
Confirmed Transactions Per Day
Confirmed transactions are down 9.5% in the last week at 320,000 transactions today. Transactions per day is still up 16.5% YTD.
Mean Transaction Value
The mean transaction value is up at 9% this week with signs of fewer extreme transaction values since 2019 ATH mid-July.
Bitcoin Economic Throughput
Bitcoin economic throughput is a measure of financial bandwidth per unit of time on the Bitcoin network. It is simply calculated by taking the average transaction size and multiplying it by the number of transactions.
Current economic throughput is ~$2.5Bn USD and is up 5% this week. Economic throughput is up 171% YTD.
Mining Revenue
Mining revenue is down 10.8% from the previous week but still marks a 161% increase YTD.
Hashrate
After Bitcoin’s recent ATH in hashrate, it is now down 16% from the previous week at 63.7m TH/s.
Daily Active Addresses
The daily active addresses for Bitcoin in down 4% from the previous week.
Bitcoin Days Destroyed
Bitcoin Days Destroyed (BDD) is an alternative metric for transaction volume on the Bitcoin network. It is calculated by taking the number of Bitcoins in a transaction and multiplying it by the number of days it has been since those coins were last spent.
The relatively low number of days destroyed signifies ‘old spent coins’ are moving less throughout the network.
Second Layer
Lightning Nodes
The number of lightning channels on the Bitcoin network has increased slightly at 0.3%. The number of nodes is up 106% YTD.
Lightning Channels
There are 28,390 unique channels on the lightning network - up 0.53% from last week. The BTC capacity on the Lightning Network has seen a 0.3% rise from previous week. Capacity is down 23% from the ATH.
Wrapped BTC
Wrapped BTC (WBTC) is an ERC20 token backed 1:1 with Bitcoin.
The total value of Wrapped BTC remains static at 563 BTC.
BTC Days Since All Time High
About the Author
Lewis Harland is an analyst at ID Theory and researches decentralised networks and cryptocurrency assets.
ID Theory Ltd. is an Investment Advisor for cryptoasset investment fund, IDT Crypto Asset Fund Ltd.
Interested in partnering with ID Theory or building something special? Get in touch through our website or at info@idtheory.io.
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