Two-thirds of the total volume of transactions in any given day, the network of bitcoin, not have any relation to the purchase of goods and services or trade in this virtual currency.
According to research firm Coinmetrics rates, trade volumes are influenced by a number of factors, including the activity of so-called cryptocurrency mixers, mixing data for different transactions and accounts, mining pools that distribute coin amongst the pool participants and direct episodes of such types of fraud such as spoofing and market manipulation.
In this bitcoin not alone. Says Elementus Inc, another research firm, more than 45% of transactions on the network Ethereum also do not have economic value. In the segment of digital token Cardano was recorded the moment when economic value possessed 98% of all transactions, and share your statistics in Coinmetrics.
Although the anonymity of the blockchain is one of the fundamental principles of the idea of bitcoin, a number of industry representatives believed that the lack of transparency in the technology of the distributed registry is an obstacle to more widespread implementation and adoption of both institutional and individual investors, and regulators.
“If the whole market started not being funny but with a serious purpose, then people need to know more about it. They want to know the facts. If institutional money will be channeled into bitcoin, their owners must understand what they’re buying,” says Charlie Morris from the company Newscape Capital Group which engaged in little investment in scriptactive.
In this regard, Morris became a member of the team of developers of a new analytical tool, which should provide a clearer understanding of the information stored in the blockchain. The result of these efforts was Cryptocomposite. com, the first version of which, according to Morris, will be launched very soon. As for another similar provider of analytical data — Elementus, as told by the CEO of the project Max Galka, this summer, financial institutions are beginning to test it in trial mode, and a full product launch will happen in the fall.
“You like spying on bloccano through a keyhole and seeing only a tiny slice, but do not represent the full picture. Very difficult to understand the whole context. We will try to give you the opportunity to see the whole situation,” commented Daw, a former trader at Credit Suisse Group and Deutsche Bank and now a lecturer at the University of Pennsylvania.
Meanwhile, the full picture can be unexpectedly different in comparison to charts of trading volumes, which can be seen on the websites-browsers, network or the blockchain to see in the published exchange statistics. Although each transaction committed on the public network, fixed online, the participants usually remain anonymous and can be very difficult to know who is behind a particular transaction, and not whether it with criminal intentions.
“In such networks addresses are created free, and fees for transactions are quite low for that one user could send a small amount through hundreds of transactions,” — explains Luca Nutstsi of Digital Asset Research.
When mixers mix the balances of various accounts, the blockchain records each of these transactions separately. According Coinmetrics, in the period from February 2017 to February 2018 one mixer formed up to 90% of the total value of transactions with Ethereum, says Nick Carter, co-founder of the site. Such activity can have the aim of protection from hacker attacks, but it can stand and the criminals trying to cover their tracks.
A large volume of transactions they generate, and mining pools, and there is no need to talk about the economic value. When the pool earns a broadcast, it is logged in the blockchain. When this coin starts to be split up and distributed between all participants, it generates a set of transactions. According to estimates Jackdaws, the share of such episodes distribution of mining pools accounts for 19% of all transactions in Ethereum.
And finally, one big problem is spam, creating the appearance of high trading volume, as in cases where the company encouraged users to create any goal of numerous new accounts for a nominal Deposit — for example, in order to be able to vote repeatedly. As the Jackdaw, the share of such activity accounts for up to 19% of the total volume of transactions in Ethereum network.
Moreover, often the manipulators intentionally inflate trade volumes flooding the market with fake orders to buy or sell, to shake it in the necessary direction. Such an appearance of activity also contributes to the promotion of the network at a higher line on these rating sites like CoinMarketCap. com.
Despite some disagreements about what should be considered economically valuable transaction (for example, the co-founder of Ethereum’s Anthony Di Iorio I am sure that they must be regarded and the distribution of resources within mining pools), most agree that many blackany literally intoxicated with spam.
Partly, as suggested by Di Iorio, due to the low transaction fees.
After deducting all do not have the economic value of transactions, the scale of networks and bitcoin and Ethereum is much smaller than assumed at the moment on the basis of the reviewers of the blockchain and cryptocurrency exchanges. Estimates of the crankcase, the volume having genuine economic value of transactions with bitcoin are about $2 billion a day. For Ethereum, a similar figure is $700 million a day. This is about twice less than the officially registered statistics of the daily volume.
Morris, on the basis that the average daily trading volume of bitcoin is $2.3 billion, concludes that at the present time, the cryptocurrency is trading in the range of 10% from their fair price.