bitcoin Press Launch: IPSX, the very first blockchain-powered IP Address Sharing system, is established on a road to success, making rapid progress and developing itself as one of one of the most appealing tokens in the altcoin community. April 17th 2018. Hergiswil NW, Switzerland: After the effective cause the Token Generation Event on the 5th of March, […]
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Published at Tue, 17 Apr 2018 20:32:43 +0000
This week Dhruv Bansal the co-founder of Unchained Capital, a cryptocurrency based financial services lending firm released a research study called ‘bitcoin Data Science: Hodl Waves’ part one. Bansal and his team analyzed the BTC network’s ledger of Unspent Transaction Outputs (UTXO) over a few years and discovered how when BTC lost a large share of value — transactions occurred less because of new investors and distinct holding periods materializing.
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Unchained Capital’s ‘Hodl Wave’ Research
The cash to crypto lending service had analyzed the bitcoin core (BTC) blockchain and the network’s UTXOs a few years ago and decided to publish the firm’s data. Blockchains use a ledger mechanism called Unspent Transaction Outputs or UTXOs and this data is timestamped. This means blockchain researchers can figure out when UTXOs were last used in a transaction which has given the company a rich set of data throughout the years.
Unchained Capital created a colored coded chart which calculates waves of age distribution within the digital currency’s UTXOs and their age distribution set back to the genesis block in 2009.
“This chart is fascinating because it displays the macroscopic shifts that have occurred in bitcoin’s ownership through history. Spikes in the bottom, warmer-colored age bands (<1 day, 1 day — 1 week, 1 week — 1 month) indicate large amounts of bitcoin suddenly transacting,” explains Unchained Capital’s research. “The steady growth of the top, color-colored age bands (2–3 years, 3–5 years, >5 years) shows bitcoin that’s not being transacted with, idling between rallies — The interaction between these two patterns illustrates the behavior of bitcoin’s investors during market cycles.”
It is not possible to make charts such as the one above for traditional asset classes. It’s only bitcoin and other public blockchains that meticulously track these data throughout their whole histories. This enables post-hoc analyses of large-scale market behavior.
This image from Unchained Capital’s research shows UTXO age distribution with price peaks labeled. The white lines are ‘Hodl Waves’ which starts a new aging period.
Essentially, Bansal and his team found a pattern after every rally that they call the ‘Hodl Waves.’ Unchained Capital says basically the wave is created when a large amount of BTC transacts towards market price spikes, and then the UTXOs age with new owners. The firm’s chart shows a visual depiction of waves forming distinct patterns of curves. “[The] pattern of nested curves caused by each age band becoming suddenly much fatter (taller) at progressively later times from the rally,” Bansal states.
The Genesis Wave to the Largest Wave in Blockchain History
The first wave began during the Genesis period between January 2009 through June 2011, when the price was 0-$33 USD per coin. Unchained Capital says this wave was not caused by a price rally, but because BTC had no significant value at the time. Early adopters and Satoshi held on to their coins, because they were not worth much for a good period of time.
The Genesis wave is the shortest wave in history.
The next wave began between June 2011 ($33) to the December rally of 2013 ($1K).
“Right after the rally to $1k, more than 60% of BTC had been spent within the last 12 months. This was the most “recent” moment for BTC’s money supply in history — the moment at which the average last time of use of a bitcoin was lowest,” explains the study. “Who sold? Once more, it was the investors who purchased in the prior 2–3 years, through the $33 peak and the $198 peak.”
Unchained Capital calls this wave the ‘Great Hodl’ of 2014.
The largest ‘Hodl Wave’ was between the 2013 rally at $1K, all the way to December of 2017 spike past $19K. Last year when BTC jumped to $1K per coin, close to 60 percent of BTC was older than twelve months. One year later during the $19K top, only 40 percent of BTC was older than a year. “During 2017, 20% of bitcoin in existence was transacted with for the first time in years,” explains the company. The researchers believe the three main reasons for this effect was due to the bitcoin Cash hard fork and Segregated Witness soft fork, initial coin offerings (ICOs), and capturing gains.
At the moment after the big spike and following ‘Crypto Winter’ a new wave is forming which shows BTC fractions older than 12 months have dropped to 40 percent.
“After every great rally, there’s been a great Hodl. As the data shows us, there is already the development of another generation of holders settling in for the long haul,” Bansal concludes.
Beginning in January 2018, the category of bitcoin that are 6–12 months old rebounded from a low of 7.76% to 14.63%, a doubling of its population.
Bansal and the research teams’ study has an interactive chart which shows a far more in-depth look at these waves. The Unchained Capital’s research paper can be found in its entirety .
What do you think about the ‘Hodl Wave’ research done by Unchained Capital? Do you find statistics like these interesting? Let us know your thoughts in the comments below.
Pictures via Shutterstock, and Unchained Capital’s research study images.
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Tallinn, Estonia, April 19, 2018 – Having attracted half a million traders in just five months with an average of 50,000 active users per day, AI-based digital asset exchange platform today announced average per day trades of US$100 million.
With a super-secure trading platform that applies the latest in big data analytics and AI technology to detect trading anomalies that pose risks in real-time, Bibox has seen a user growth rate of more than 300% per month. Bibox provides functions for professional traders that include Planned, Conditional, Iceberg, TWAP, Stop Loss/Gain orders.
Underpinned by blockchain and proprietary algorithms, Bibox’s supports more than 35 tokens and 112 trading pairs, including bitcoin, Ethereum and Tether, with AI selecting listings for new tokens on Bibox Digital Exchange Platform based on merit. Bibox adopts and end-to-end approach to AI-based security that includes monitoring functions and alerts for suspicious activity.
Given its transparency and security credentials, CEO Jeffrey Lei wants to extend secure trading beyond crypto geeks, and develop a platform that is accessible to everyone, “Eventually users with different risk tolerance capabilities will have different access to trading services and fees according to their identity.”
At present, Bibox can handle more than 10 million users at the same time and 1 million transactions per second.
For more information please visit official website , subscribe to Bibox official accounts in Twitter; Reddit; and Medium.
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Herman Gref, the CEO at Sberbank, the largest Russian bank with State participation, has recently confessed that he had purchased his most expensive t-shirt for 12 bitcoins. The whole deal was worth only $5 at that time. But in the beginning of 2018, this amount of bitcoins would make up a fortune as it would equal to $98,184, according to the bitcoin price from .
The internet is full of stories about people who purchased something for crypto when it used to be very cheap. Only over the past year, bitcoin has grown in price by 1824%. Its rate has increased thousands of times in the past years, that’s why now the value of these transactions looks astonishing. For example, a guy from the US ordered 2 pizzas for 10,000 BTC, which now make up almost $100 mln. The reason behind this act was the lack of spare money and the availability of bitcoins, as he explained.
As the market evolves, now a tool has emerged allowing to get a loan with “real” – or fiat – currency on the security of crypto assets. In other words, those who possess bitcoin, Ethereum or other cryptos can unfreeze some of their funds and get instant money for their own needs, business development or hedging. At the same time, they don’t need to sell their crypto assets.
Startups ready to grant loans for such collateral emerge all around the world. Among them are: SALT Lending from the U.S., Nebeus from the UK, ETHLend from Hong Kong and eCoinomic.net from the Estonia.
The terms of such loans are significantly different from the standard ones because of the blockchain assets’ high volatility. For example, you may use 1 BTC to get a loan of $10,000, while its market value can vary between $15,000 and $20,000. Meanwhile, the loan rate may vary between 7% and 12% and sometimes reach 20% and even 120% per annum.
Such loans can trigger a real revolution in the lending market. Indeed, for the first time in 20 years a new asset has emerged that can be used to get a loan. And smart contracts help to solve the problem of trust between the parties that can be located on different continents.
“The second generation of cryptos, starting from Ether, allows to set up the so-called smart contracts. In fact, this is the creation of certain conditions, the fulfillment of which is fixed by the whole system, regardless of will and desire of participants who signed this contract,” clarifies Maksim Akulshin, the co-founder and the Architect of .
This tool can completely replace intermediate institutions, such as banks. For example, previously, without these intermediaries, it was impossible to imagine a deal for buying and selling an apartment. Now the conditions for transferring property rights after the payment is received can be registered in a smart contract.
This mechanism allows to ensure transparency while working with a borrower. “The one who takes credit is sure that we will not use his bitcoin, we will not sell it secretly, we will not be able to speculate with it. And when he returns the money he borrowed, he will receive back his pledge,” explains Aleksei Smolianov, the co-founder of eCoinomic.net and the owner of the Sauber Bank.
Besides, the information that the crypto currency is in the pledge is available to any user who is not even an eCoinomic.net client, since this information is open for external access.
The idea to offer the market the tool to give out loans secured by cryptocurrency appeared in the minds of eCoinomic.net co-founders a little over a year ago when it became clear that the development of the blockchain is irreversible. “We’ve been active in the microcredit market and we understand well both the market and the mechanism of its work: how the money should be paid from the technical point of view, how to interact with the clients,” says Aleksei Smolianov. “One of the companies represented in the group headed by Maksim Akulshin is an IT-company with more than 10 years of experience. We’ve been working together both in the area of B2B and in searching for fintech solutions”.
The analysis of the potential market has revealed two groups of users. The first one consists of those who possess only a small amount of cryptocurrencies. They have almost no free funds and they often deny themselves current expenses, travelling, business trips, rest, because they believe that this asset will grow and try to keep it. The representatives of the second group mostly have big amounts of cryptocurrencies and they need to hedge their positions.
The total amount of funds raised during the eCoinomic.net Token Sale shall be divided into two parts. $6 million will be spent on the launch: development of the platform, legal and technical audit, initial marketing. The rest of the funds are to form the Reserve. We estimate this part to amount at $100 million. The Reserve is required as a precaution against abrupt changes in volatility. The reason behind this measure is the sharp short-term slippage of price, which shows up in the market from time to time.
Suppose that a client has deposited bitcoin and received a loan of $7,000 when the price per 1 BTC was equal to $10,000. With eCoinomic.net, the maximum period for which he can receive such a loan is 1 month. If he returns the funds during this period bitcoin gets unfreezed and gets back to the client’s wallet.
But if the prices drop significantly, the client may face a margin call if the quotes drop below $7,000 per bitcoin. The client will receive a notification each time the price drops by 5%. He can reduce his risks if he increases his safety margin. If a margin call occurs, eCoinomic.net platform sells the collateral. If the prices fall sharply, it may be difficult to sell bitcoin at the needed price. This is when the insurance fund will help. This fund can buy the bitcoin in such a situation and sell it at the exchange when the price bounces back.
The project representatives are now in the midst of negotiations with institutional investors that are ready to place the funds when the platform is launched and provides audited reports.
Loans in eCoinomic.net are strictly regulated, 1 contract cannot exceed $10,000, the maximum term of one contract cannot be more than one month, the commission is fixed. One user can execute several contracts.
A smart contract regulates the rights and obligations of all parties. If one participant fulfills the terms of the contract, the other party unambiguously fulfills it, too. Such approach will allow borrowers and creditors build relationships in a new way.
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