How to tell if Bitcoin is really dead?

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image descriptionImage Source:we see it almost every day, this is nothing new. But the problem is,

In fact,How can something that is dead die again?In fact,Bitcoin has been declared dead more than 300 times

Most people just dont understand Bitcoin.Hans Haugeexistblockchain investorexist

It is wrong to declare the death of Bitcoin based on its price drop alone. So whats the right way to do it?Treat Bitcoin as an organism and pay attention to the four major dataIt helps if Bitcoin is considered a living thing.

heIt is difficult to classify Bitcoin, but its behavior and vital signs can be known.heprevious articlepointed out that

If Bitcoin is really dead and the price has gone to zero, why does the data show the exact opposite trend?

1. Bitcoin Hash Rateblockchain.com

Bitcoin hash rate (logarithmic scale), data source:

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2. Number of Unique Bitcoin Addressesblockchain.com

The number of unique Bitcoin addresses (logarithmic scale), data source:death spiralIf you look at the number of unique Bitcoin addresses in use, you might think that there has been a decline over the past three months. However, given the magnitude of the decline in 2011, this trend is not at all

death spiral

3. The number of confirmed bitcoin transactions

If Bitcoin is really dead, no one will use it. If no one is using it, then the number of confirmed transactions will level off (not increase).blockchain.com

image descriptionNumber of Bitcoin transactions (logarithmic scale), data source:From the table above, people are still using the Bitcoin network. these are not

Fake transactions with zero fees

, nor are the transactions made by the robot itself. In fact, people need to pay to use the main network., having an active development team is a big deal. Bitcoin is a project supported by a network of volunteers. Therefore, community support is critical to Bitcoins success and growth.

Image Source:Github.com

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For better understanding for non-technical people, lets estimate the cost of hiring 34 software engineers per year. Assuming an average annual salary of $100,000, the total annual salary of 34 software engineers is $3.4 million, and the work is actually done by volunteers. (Yes, not all engineers work full time, but many of them are some of the best engineers in the field, so their actual salaries will be well above $100k.)lightning networkimage description

Image Source:Github.com

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How to tell if Bitcoin is dead?

Knowing the life statistics of Bitcoin, we can determine whether Bitcoin is dead or not. The basis for judgment is simple:

1. If the network hash rate drops to zero;

2. If the number of unique addresses stops growing;

3. If the number of confirmed transactions stops increasing;

People may think that Bitcoin will succeed in the future, or that Bitcoin will fail, or that Bitcoin will be good or bad. The reality is, as of today, Bitcoin isnt dead because it doesnt meet the criteria for being dead; so its alive.

Now that we know what Bitcoin “death” looks like, let’s take a look at its imminent death.

Image Source:The Princess Bride

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Image Source:Bitcoin is an asset that needs to be valued using a logarithmic scale,

Its survival depends on being able to maintain the price trend. During downturns or periods of market overheating, we may see temporary corrections in the price of Bitcoin and some statistics, as it did after the Mt. Gox bankruptcy. However, given the long 8-10 year history of the Bitcoin network (with some statistical limitations before the price is affected), the long-term trend is still the best indicator.blockchain.com

Bitcoin market capitalization (logarithmic scale), data source:

in conclusion

Since 2010, there have been three sharp corrections and three bubbles in the market. We are now in the third stage. Hans Hauge said he was looking forward to a bottom in the market. He believes that this cycle will repeat itself when the price of Bitcoin soars to higher levels.

in conclusion