{"id":285272,"date":"2023-01-10T07:30:10","date_gmt":"2023-01-10T07:30:10","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=285272"},"modified":"2023-01-10T15:20:21","modified_gmt":"2023-01-10T15:20:21","slug":"research-bitcoin-fundamentals-remain-unchanged-despite-the-significant-events-in-2022","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/research-bitcoin-fundamentals-remain-unchanged-despite-the-significant-events-in-2022\/","title":{"rendered":"Bitcoin fundamentals remain unchanged despite the significant events in 2022"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The year 2022 marked the start of a new crypto winter, with major crypto companies collapsing and digital currency prices plummeting, including Bitcoin. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, interest rate increases and general economic negativity are causing investors to worry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The fundamentals of Bitcoin remain strong despite all of these. <\/span><span style=\"font-weight: 400;\">Let's take a look at some of the Bitcoin metrics for the year 2022:<\/span><\/p>\n<h2><b>Bitcoin Circulating Supply<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The circulating supply of Bitcoin currently stands at 19,257,175 &#8211; 91.7% of the capped maximum supply of 21 million coins.\u00a0 Now, there are 1,742,825 left to be mined before the limit of 21 million bitcoins is reached.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-285280 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/glassnode-studio_bitcoin-percent-of-21m-supply-mined.png\" alt=\"\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/glassnode-studio_bitcoin-percent-of-21m-supply-mined.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/glassnode-studio_bitcoin-percent-of-21m-supply-mined-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/glassnode-studio_bitcoin-percent-of-21m-supply-mined-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/glassnode-studio_bitcoin-percent-of-21m-supply-mined-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/glassnode-studio_bitcoin-percent-of-21m-supply-mined-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">An average of one bitcoin block is created every 10 minutes, so Bitcoin's supply is increasing approximately every 10 minutes.<\/span><\/p>\n<figure id=\"attachment_285564\" aria-describedby=\"caption-attachment-285564\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-285564 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/block-time-1024x224.png\" alt=\"\" width=\"1024\" height=\"224\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/block-time-1024x224.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/block-time-300x66.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/block-time-768x168.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/block-time.png 1366w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-285564\" class=\"wp-caption-text\">Change in Bitcoin block time over one year (Source: BitInfoCharts)<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">However, despite a severe market downturn, including miner capitulation and forced liquidation, defi platform hacks, Bitcoin has largely maintained consistent 10-minute block times IN 2022.<\/span><\/p>\n<h2><strong>Bitcoin miner\u2019s block reward<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Two components constitute bitcoin block rewards: newly created coins and transaction fees. When they successfully validate blocks on the network, the reward is given to miners. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The number of newly generated coins is regulated by a halving event that occurs roughly every four years. The Bitcoin halving event reduces the supply of new bitcoins by half and aims to ensure that all 21 million bitcoins have been mined.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite moving all their BTC to different addresses, the newly generated Bitcoin currently stands at 900\/day this halving, and the reward for each block is $6.3 BTC.<\/span><\/p>\n<figure id=\"attachment_285283\" aria-describedby=\"caption-attachment-285283\" style=\"width: 1014px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-285283 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/blkr.png\" alt=\"Change in miner's block rewards over the last years (Source: Bitcoin Visuals0\" width=\"1014\" height=\"265\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/blkr.png 1014w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/blkr-300x78.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/blkr-768x201.png 768w\" sizes=\"(max-width: 1014px) 100vw, 1014px\" \/><figcaption id=\"caption-attachment-285283\" class=\"wp-caption-text\">Change in miner's block rewards over the last years (Source: Bitcoin Visuals0<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">While block rewards are stable and predictable, transaction fees can fluctuate depending on multiple factors, such as network activity and transaction size.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bitcoin's Average Transaction Fee was $0.834 on Dec.31, a decrease from last year's high of 2.829 &#8211; a change of 70.5%.<\/span><\/p>\n<figure id=\"attachment_285284\" aria-describedby=\"caption-attachment-285284\" style=\"width: 839px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-285284 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/txn.png\" alt=\"Change in transaction fees over the last year (Source: ycharts)\" width=\"839\" height=\"255\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/txn.png 839w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/txn-300x91.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/txn-768x233.png 768w\" sizes=\"(max-width: 839px) 100vw, 839px\" \/><figcaption id=\"caption-attachment-285284\" class=\"wp-caption-text\">Change in transaction fees over the last year (Source: ycharts)<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">This fall is primarily due to increasing network difficulty, heavy computational demand, and poor market performance.\u00a0<\/span><\/p>\n<h2><b>Block height<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The block height stood at 573.296k as of December 31. The blocks created per day remained constant despite the miner's revenue touching new lows.\u00a0<\/span><\/p>\n<figure id=\"attachment_285286\" aria-describedby=\"caption-attachment-285286\" style=\"width: 1015px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-285286 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/blk-ht.png\" alt=\"Growth of block height and blocks created per day (Source: Bitcoin Visuals)\" width=\"1015\" height=\"274\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/blk-ht.png 1015w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/blk-ht-300x81.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/blk-ht-768x207.png 768w\" sizes=\"(max-width: 1015px) 100vw, 1015px\" \/><figcaption id=\"caption-attachment-285286\" class=\"wp-caption-text\">Growth of block height and blocks created per day (Source: Bitcoin Visuals)<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Every blockchain consists of a series of sequential blocks, with the first block referred to as the genesis block. The genesis block is considered to be in block height zero. As a general rule, the blockchain's total height equals the height of the most recent block.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As the block height continues, Bitcoin still has more than 99% uptime, currently sitting at <a href=\"https:\/\/buybitcoinworldwide.com\/bitcoin-uptime\/\">99.987%<\/a>.\u00a0<\/span><\/p>\n<h2><b>Bitcoin mining difficulty<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">As of December 31, 2022, Bitcoin mining difficulty stood at 35.36 trillion, up from 24.27 trillion one year back.<\/span><\/p>\n<figure id=\"attachment_285292\" aria-describedby=\"caption-attachment-285292\" style=\"width: 861px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-285292 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/blk2.png\" alt=\"Bitcoin Difficulty\" width=\"861\" height=\"296\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/blk2.png 861w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/blk2-300x103.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/blk2-768x264.png 768w\" sizes=\"(max-width: 861px) 100vw, 861px\" \/><figcaption id=\"caption-attachment-285292\" class=\"wp-caption-text\">Bitcoin Difficulty<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">This figure represents the amount of computing power applied to mining this particular cryptocurrency every 14 days based on the amount of hashing power competing for rewards on the network.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A greater mining difficulty indicates that more miners are trying to obtain this cryptocurrency. Hashing refers to the amount of processing power that PCs use to build the blockchain: the more blocks of verified transactions are processed, the more bitcoin is mined. Despite a volatile market and a blizzard last month, mining difficulty adjusted every 2016 block.<\/span><\/p>\n<figure id=\"attachment_285279\" aria-describedby=\"caption-attachment-285279\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-285279 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/glassnode-studio_bitcoin-difficulty-adjustment-percent-change-3.png\" alt=\"Bitcoin difficulty adjustment percent change (Source: Glassnode)\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/glassnode-studio_bitcoin-difficulty-adjustment-percent-change-3.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/glassnode-studio_bitcoin-difficulty-adjustment-percent-change-3-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/glassnode-studio_bitcoin-difficulty-adjustment-percent-change-3-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/glassnode-studio_bitcoin-difficulty-adjustment-percent-change-3-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/glassnode-studio_bitcoin-difficulty-adjustment-percent-change-3-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-285279\" class=\"wp-caption-text\">Bitcoin difficulty adjustment percent change (Source: Glassnode)<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>The year 2022 marked the start of a new crypto winter, with major crypto companies collapsing and digital currency prices plummeting, including Bitcoin. In addition, interest rate increases and general economic negativity are causing investors to worry. The fundamentals of Bitcoin remain strong despite all of these. Let&#8217;s take a look at some of the [&hellip;]<\/p>\n","protected":false},"author":1393,"featured_media":276910,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2376,15323,77921],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bitcoin fundamentals remain unchanged despite the significant events in 2022<\/title>\n<meta name=\"description\" content=\"Bitcoin has endured a turbulent year, including a decline in price and market cap, but its foundations remain solid.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/research-bitcoin-fundamentals-remain-unchanged-despite-the-significant-events-in-2022\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bitcoin fundamentals remain unchanged despite the significant events in 2022\" \/>\n<meta property=\"og:description\" content=\"Bitcoin has endured a turbulent year, including a decline in price and market cap, but its foundations remain solid.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/research-bitcoin-fundamentals-remain-unchanged-despite-the-significant-events-in-2022\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-10T07:30:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-10T15:20:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/bitcoin-holder.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Soumen Datta\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Soumen Datta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/research-bitcoin-fundamentals-remain-unchanged-despite-the-significant-events-in-2022\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/research-bitcoin-fundamentals-remain-unchanged-despite-the-significant-events-in-2022\/\"},\"author\":[{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/soumen-datta\/#person\",\"name\":\"Soumen Datta\",\"url\":\"https:\/\/cryptoslate.com\/author\/soumen-datta\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/soumen-datta\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/soumen-datta\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/10\/cs-soumen.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/10\/cs-soumen.jpg\",\"caption\":\"Soumen Datta\"},\"jobTitle\":\"Journalist\",\"description\":\"Soumen is a dedicated researcher and writer in the field of cryptocurrencies, DeFi, NFTs, and GameFi projects. 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