Report: BTC Gets a Health Check in ‘The State of Bitcoin’

Delphi Digital has taken a deep dive into bitcoin core in its first “The State of Bitcoin” report. The 59-page document from the digital asset company leaves no stone unturned, covering everything from payments to coin distribution and rolling returns compared to stocks and gold. The report brings together a plethora of interesting statistics that attest to bitcoin’s growing evolution and adoption.
Also read: Fundraiser Aims to Raise $1M in Cryptocurrencies for Venezuelans
Better Understanding Bitcoin
Few people, save for a handful of terminal haters and discredited economists, dispute that Bitcoin is valuable. But quite where that value lies, and what the primary purpose of Satoshi’s creation should be, is a matter of some dispute. “In its current state, is easier to dismiss than understand,” acknowledge the authors of The State of Bitcoin. “We believe the primary long-term value drivers for BTC revolve around its ability to serve as 1) a censorship-resistant and 2) a ‘check’ on governments as an alternative, country-agnostic digital reserve currency.”
The report itself offers something for everyone, addressing ’s current deployment as both a medium of exchange and a store of value. Delphi Digital devotes particular attention to charting BTC’s progress in the countries that need it most – inflation-hit and Venezuela. Here, as well as in regions where many of the world’s unbanked can be found – primarily Africa – cryptocurrencies have huge potential. The report identifies three primary drivers behind BTC adoption in these countries:

As an alternative to local currencies suffering from high or hyperinflation
Allowing citizens to hold their wealth directly, rather than trust a local bank
To improve the speed and reduce transaction fees of sending remittances

The average cost of remittance for sending $200 is as high as $36 between South Africa and Botswana, for example, showing significant scope for cryptocurrencies to provide a low-cost alternative. But ’s use cases don’t end there. “In the past, when high inflation took hold in a person’s country, there was little that they could do except watch as their purchasing power evaporated,” continues the report. Now, “any person with internet access has the option to insulate themselves from local currency risk by switching to [BTC]. Essentially, bitcoin can offer a check on government power and policy while providing a vital safe haven for people from all around the world.”
Divining Trends Through UTXO Analysis
Examining unspent transaction outputs (UTXOs) offers up clues as to the market cycle that is currently enduring, and hints at what may come next. Delphi Digital has used a green line to represent UTXOs that are at least a year old – i.e. coins that haven’t been spent in over a year. Monitoring the percentage of 1yr+ UTXOs, as part of BTC’s entire UTXO set, shows when bitcoin holders begin to move their coins once more, be it to sell, trade, or purchase goods and services. “In the second half of 2018, the 1-Year UTXO band began exhibiting a positive growth trajectory directly in tandem with the 1-2 Year band as

This was syndicated from and originally written by our friends Kai Sedgwick at
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