In 2024, the transaction volume completed by the Bitcoin network surpassed $19 trillion, more than double the $8.7 trillion in 2023. This remarkable growth marks a strong rebound after two consecutive years of declining transaction volumes since 2021.
Pierre Rochard, Vice President of Research at Riot Platforms, emphasized that this surge not only proves Bitcoin's resilience but also solidifies its core position in the global financial system. He noted, 'The Bitcoin network completed transactions worth over $19 trillion in 2024, clearly showcasing its unique advantages as a store of value and medium of exchange.'
ETFs and the halving event help Bitcoin reach new highs.
Bitcoin's recovery in 2024 benefited from multiple factors, including the approval of Bitcoin spot exchange-traded funds (ETFs) in the U.S., the upcoming halving event in 2024, and a price reaching an all-time high of $108,000. These milestone events not only boosted market confidence but also propelled global adoption of Bitcoin.
The security of the Bitcoin network has also reached new heights. In January 2024, Bitcoin's hash rate broke the historical record of 1,000 EH/s; although it stabilized around 775 EH/s thereafter, this level still demonstrates the ongoing commitment of global miners to the Bitcoin ecosystem.
The decentralized network structure remains the core advantage of the Bitcoin ecosystem. Although the geographical distribution of hash rate dominance is difficult to track completely, the anonymity and flexibility of miners ensure the Bitcoin network's censorship resistance and resilience.
The United States dominates global Bitcoin mining, but China still retains influence.
In 2024, the United States continues to solidify its position as the global Bitcoin mining center, accounting for over 40% of the total global hash rate. Among them, Foundry USA and MARA Pool have become industry leaders, jointly mining 38.5% of Bitcoin blocks.
Foundry USA increased its hash rate from 157 EH/s to 280 EH/s within a year, showcasing strong growth in North American mining. However, the influence of Chinese mining pools remains significant. Despite China banning cryptocurrency mining as early as 2021, as of September 2024, Chinese mining pools still control 55% of the global hash rate.
Chinese miners circumvent regulations using virtual private networks (VPNs) and peer-to-peer applications, continuing to maintain dominance in the global mining sector. This phenomenon highlights the double-edged sword of Bitcoin's decentralized network: it enhances censorship resistance while posing ongoing challenges to regulation.
Businesses adapt to the new environment, and the Bitcoin ecosystem continues to expand.
The escalation of U.S.-China trade tensions has prompted mining machine manufacturers like Bitmain to shift production focus to the U.S., while Jack Dorsey's Block has also announced a resource realignment to increase investment in Bitcoin mining and self-custody wallets. The wave of globalization in blockchain technology is driving comprehensive innovation in the Bitcoin ecosystem from mining equipment to trading tools.
The Future of Digital Gold
The strong performance in 2024 undoubtedly lays a more solid market foundation for Bitcoin. Whether it’s the surge in transaction volume, enhanced security, or the globalization of the mining industry, Bitcoin is proving its 'digital gold' value to the world in a whole new way.
While it is important to follow market trends, maintaining rationality and foresight is crucial. Follow Mr. Qiu to navigate through the data fog and interpret the essence of trends. In this rapidly changing world, 'seizing the opportunity' is never just an empty phrase—it is the secret weapon behind every successful trade!
