The Bitcoin network will have processed more than $19 trillion in transactions in 2024, more than doubling the $8.7 trillion in 2023. This impressive increase marks a reversal after two years of declining volumes since the peak of $47 trillion during the bull market in 2021.
Bitcoin’s role as a store of value and medium of exchange
Pierre Rochard, vice president of research at Riot Platforms, emphasizes that these numbers prove that Bitcoin is not only a store of value, but also an effective medium of exchange. With a market cap of $1.9 trillion, Bitcoin will overtake the silver market ($1.6 trillion) by 2024, further cementing its status as a financial instrument.
The year 2024 brought several milestones for Bitcoin. The introduction of a Bitcoin ETF in the United States and its halving in April attracted significant attention from institutional and retail investors. These developments contributed to a new record of $108,000 for the Bitcoin price.
Growing power of the network
In addition to the rising transaction volume, the computing power of the Bitcoin network reached a new peak. On January 3, 2024, the hashrate reached a record high of 1,000 exahashes per second (EH/s). Although it later stabilized at 775 EH/s, the continued increase underlines the security and robustness of the network.
US-based mining pools, such as Foundry USA and MARA Pool, accounted for 38.5% of all blocks mined in 2024. However, China retains a leading position in the global mining hasrate. However, the pseudonymous nature of Bitcoin mining makes it difficult to determine exact geographic dominance, partly due to the use of VPNs and geographically dispersed miners.
Institutional adoption and future prospects
The record-breaking inflow of capital into the crypto market by 2024, estimated at $78 billion, highlights Bitcoin’s growing role in institutional portfolios. This included $27 billion in crypto funds and $22 billion in direct purchases by MicroStrategy, representing 28% of total inflows into the crypto market.
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Source: https://newsbit.nl/bitcoin-netwerk-verwerkt-19-biljoen-aan-transacties-in-2024/
