Erik Voorhees – CEO of Shapeshift, big-time proponent of Bitcoin, and notable individual in the crypto space – recently shared a chart via Twitter that shows the number of confirmed Bitcoin (BTC) transactions per day.
According to Voorhees, the chart which is featured in his tweet below is “the most important chart in crypto.”
The most important chart in crypto https://t.co/XME5jivO5x #bitcoin #blockchain #finance
— Erik Voorhees (@ErikVoorhees) April 23, 2019
The chart featured in the tweet above is from blockchain.com and shows a visual representation of the number of daily confirmed Bitcoin transactions.
To Voorhees, this is the most important chart in crypto because it represents Bitcoin’s rate of adoption as well as the overall usage and interest in the cryptocurrency.
Bitcoin Usage on the Rise
As seen in the “most important chart in crypto” above, the number of daily Bitcoin transactions has been on a healthy uptrend since around 2012.
Also, in alignment with Bitcoin’s price, the number of daily transactions reached an all-time high near the peak of the previous bull run, when Bitcoin reached $20,000. Since then, the number of Bitcoin transactions experienced a steep decline in 2018, due to the significant bear market.
However, towards the middle of 2018, the number of Bitcoin transactions began to healthily rise once again, and the price eventually followed after bottoming out in December 2018.
Therefore, this chart which Voorhees rates so highly not only shows Bitcoin’s adoption and usage but can be used as a precursor for price action.
Bitcoin’s Adoption Will Drive Its Price
It’s long been said that real-world adoption of Bitcoin and cryptocurrencies is what will drive their price far past previous all-time highs. This statement couldn’t be truer, as the transactional data represented in the above chart shows a direct correlation with price.
As previously reported by IIB, Coinbase CEO Brian Armstrong listed 3 key things crypto needs for mass adoption: reduced volatility, increased scalability, and better usability.
In addition to this, Voorhees points out in his Twitter thread about the aforementioned chart that transactions done via Bitcoin’s lightning network are not even included in the chart’s data. Therefore, Bitcoin’s scaling solution features more transactions than what’s represented in the chart.
All in all, once the Bitcoin lightning network and other scaling solutions catch on and are fully developed, Bitcoin will be used far more than it is now and its price should reflect this usage.
Do you think the number of daily Bitcoin transactions will continue to rise? When will we surpass the all-time high of Bitcoin transactions? Let us know what you think in the comment section below.
