Search
Close
  • Home
  • Business News
  • Crypto News
    • Binance
    • Bitcoin
    • Cardoso
    • Dogecoin
    • Ethereum
    • NFT X Metaverse
    • Shiba in
    • Other alt coins
  • Market News
  • Technology News
  • Tools
    • Crypto Table
    • Exchange Rate
    • Currency Converter
Menu
  • Home
  • Business News
  • Crypto News
    • Binance
    • Bitcoin
    • Cardoso
    • Dogecoin
    • Ethereum
    • NFT X Metaverse
    • Shiba in
    • Other alt coins
  • Market News
  • Technology News
  • Tools
    • Crypto Table
    • Exchange Rate
    • Currency Converter
Search
Close
Home Market News

The Very Best From Jameson Lopp’s “Bitcoin 2021 Annual Review”

Cointori by Cointori
March 6, 2022
in Market News, Technology News
152
SHARES
1.9k
VIEWS
Share on FacebookShare on TwitterShare on Whatsapp

RelatedPosts

Mkango and CoTec Sign Definitive Agreements to Invest in Mkango, Maginito and to Collaborate in Rare Earth Technologies in United States

US Stocks On Track For Nervous Start As Traders Go Fed Watching: AMD Earnings Calm Investors

Societal CDMO Highlights Growth of Existing Customer Business Through Signing of More Than $6 Million in Work Orders During Fourth Quarter of 2022

Bitcoin developer and researcher Jameson Lopp published his year-in-review. A report so meaty that we’ll stick to the highlights, and leave people that feel so inclined to explore the whole document at their leisure. With the report, Jameson Lopp aims to paint a broad picture of what the Bitcoin ecosystem is going through, besides the price. Or, as he puts it:

“Most people are only familiar with the exchange rate of Bitcoin, if that. But exchange rate is just one of many metrics we can use to observe the evolution of this ecosystem. While any given metric can be gamed or may be taken from sources that aren’t 100% reliable, by using a diversity of metrics and sources we can get a rough idea of the trends in this space.”

Related Reading | BitGo Engineer Jameson Lopp Swatted for Bitcoin Views

What metrics did Mr. Lopp find interesting and worthy of his report? Let’s find out.

According To Jameson Loop, 2021 Was A Growth Year 

Surprising no one, “El Salvador surged from 150th to 1st place with regard to relative search interest for Bitcoin.” However, it’s interesting to know “that it wasn’t even on the list of 66 countries for which Google logged search interest in 2020.” Also note that, according to Google, “a higher value means a higher proportion of all queries, not a higher absolute query count.”

Countries with the highest relative search interest for Bitcoin have changed significantly from 2020 to 2021! While it’s no surprise to see El Salvador at #1, it’s notable that it wasn’t even on the list of 66 countries for which Google logged search interest in 2020. pic.twitter.com/i6fHQYUfh6

— Jameson Lopp (@lopp) December 25, 2021

In Reddit, Bitcoin had an unusually phenomenal year. “The bitcoin subreddit saw hockey stick growth. Comments and posts per day also more than doubled.” What does this mean? We’re not sure, but, it “finally broke into the top 100 subreddits in terms of subscribers!” That has to count for something.

/r/bitcoin had a massive 2021, nearly doubling its subscriber count to a total of 3,706,000. By doing so it has finally broken into the top 100 subreddits in terms of subscribers! pic.twitter.com/mQmp6VMLzc

— Jameson Lopp (@lopp) December 25, 2021

“Academic interest continued to increase, which is great for the long-term prospects of this industry as we continue to gain a greater understanding of what we’re building.” That’s not entirely true, the number of Bitcoin-related papers is less than the previous year. However, it will probably increase “due to listing lag.” In fact, at the time of writing Google lists “About 22,700 results.”

Google Scholar articles published mentioning Bitcoin:
2009: 83
2010: 136
2011: 218
2012: 424
2013: 868
2014: 2,070
2015: 2,820
2016: 3,380
2017: 6,460
2018: 11,500
2019: 20,300
2020: 24,000
2021: 21,500 (will ⬆ due to listing lag)

— Jameson Lopp (@lopp) December 25, 2021

However, not everything grew in 2021. As the price remained flat for most of the year, Bitcoin’s market cap dominance dropped. Jameson Lopp explains it, “2021 saw a surge in layer 1 competitors to Ethereum, with several networks surging in value as they offer faster and cheaper alternatives with the same functionality. This resulted in the overall crypto market cap surging and made Bitcoin’s share smaller.”

Bitcoin market cap dominance (a highly manipulable metric of questionable value) dropped throughout 2021 despite the increase in exchange rate, as a number of new tokens reached unicorn status. pic.twitter.com/qVGOf4iyJW

— Jameson Lopp (@lopp) December 29, 2021

The Lightning Network Is Harder To Measure, But…

There’s no denying that 2021 was the year of The Lightning Network. As Jameson Lopp puts it, “The observable network grew significantly in 2021. It’s also becoming more difficult to know how accurate the metrics are for Lightning Network as more channels are being created privately.” It’s important to note that the following tweet contains a typo, there were actually 19,048 nodes.

Lightning Network in 2021:
# advertised channels ⬆ 124% to 84,377
# nodes with channels ⬆ 132% to 1,948
Bitcoin in those channels ⬆ 212% to 3,309 BTC
Network total USD value ⬆ 410% to $158M

NOTE: unadvertised channels and their value can’t be measured.

— Jameson Lopp (@lopp) December 31, 2021

And there’s also the density, which is “an inverse efficiency metric.” And it’s going down. So efficiency is going up.

Lightning Network density is now below 0.1% – you can think of this as an inverse efficiency metric. A 100% dense network would be one in which every node connects to every other node, which would tie up a ton of capital and other resources. pic.twitter.com/nX4pQZ1EGl

— Jameson Lopp (@lopp) January 2, 2022

Jameson Lopp included this tweet by one of the most successful Lightning node operators out there, Alex Bosworth. In it, we can see how the Lightning Network Revenues for nodes almost tripled the past year.

https://t.co/9TviYagVWi Lightning Network Revenues:

2018: 0.1184 BTC
2019: 0.2194 BTC
2020: 0.3477 BTC
2021: 1.0800 BTC

My total capital and coding involved has stayed fairly flat over this time. Routing has grown a lot.

Chain fee costs declined dramatically from 2020 levels.

— Alex Bosworth (@alexbosworth) December 31, 2021

Jameson Lopp On Network Security And Node Count

Great news for decentralization, the number of nodes keeps rising. “I attribute this to more user friendly “plug and play” node projects gaining popularity.” The reachable Bitcoin nodes increased by 30%, but the headline are the unreachable nodes. “The number of unreachable nodes (behind routers without port forwarding) was also fairly steady around 50,000. This is probably evidence of a node floor of dedicated Bitcoiners who have persevered through the bear market.”

Reachable Bitcoin node count increased 30% in 2021 according to @port8333. The fascinating thing is that this is a result of a surge in tor nodes – the number of nodes reachable via IPV4 actually decreased. pic.twitter.com/LgDi8Y0fXR

— Jameson Lopp (@lopp) January 2, 2022

Following the China ban on Bitcoin mining, the network made a complete recovery and the hashrate even got to an all-time high at the very last moment. “Bitcoin’s network hashrate increased by 10% during 2021, from 159 to 175 exahash per second.” The predictions for this year are wild, though. “We are still accelerating of course, and I expect that 2022 will accelerate growth even faster as we are seeing major investments in infrastructure as folks seek out cheap stranded and renewable energy across the world.”

Bitcoin’s network hashrate increased by 10% during 2021, from 159 to 175 exahash per second.

But that’s not noteworthy. Weathering and completely recovering from a 50%+ drop due to a mining ban by the country with the most hashpower was a major milestone for network resilience. pic.twitter.com/yw8HwXm9pG

— Jameson Lopp (@lopp) January 2, 2022

Back to nodes, as it turns out, “the resources required to fully validate the entire history of the blockchain are decelerating, meaning that node operators should be able to take advantage of the deflationary nature of technology.”

During 2021 the Bitcoin blockchain grew from 319GB to 383GB – an annual growth rate of 20%. pic.twitter.com/mLK9WjAWSg

— Jameson Lopp (@lopp) January 1, 2022

The “annual blockchain growth rate is now down to 20%, which ought to be easily addressed by increasing hard drive density.” 

BTCUSD price chart for 01/05/2021 - TradingView

BTC price chart for 01/05/2022 on FX | Source: BTC/USD on TradingView.com

Conclusion

To wrap this up, let’s give the mic to Jameson Lopp:

“The one theme that I’ve taken away from all of these metrics is that 2021 was a growth year for Bitcoin, though it was unlike previous cycles of retail hype and we persevered through some significant hiccoughs.”

Related Reading | NFTs: A 2021 Year In Review

Was the cycle broken in 2021? Maybe. Price-wise, Bitcoin behaved in a unique way this year. However, as Lopp’s report shows, by all other metrics the network looks healthier than ever.

Featured Image by engin akyurt on Unsplash  | Charts by TradingView
Share61Tweet38Send
Cointori

Cointori

Related Posts

Mkango and CoTec Sign Definitive Agreements to Invest in Mkango, Maginito and to Collaborate in Rare Earth Technologies in United States

February 1, 2023

US Stocks On Track For Nervous Start As Traders Go Fed Watching: AMD Earnings Calm Investors

February 1, 2023

Societal CDMO Highlights Growth of Existing Customer Business Through Signing of More Than $6 Million in Work Orders During Fourth Quarter of 2022

February 1, 2023

Food Service Equipment Market Size Worth USD 46.38 billion, Globally, by 2027 at 4.1% CAGR

February 1, 2023

Elon Musk Rails Against Putin Ally For ‘War Criminal’ Comment: ‘Damned If You Do, Damned If You Don’t’

February 1, 2023

The @Newsquawk US Market Open: Relatively contained trade ahead of data, earnings & FOMC

February 1, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

No Result
View All Result
  • Trending
  • Comments
  • Latest

Is The Ethereum Merge About To Have A Confirmed Delay?

April 15, 2022

Data Leak At Unchained Capital, NYDIG, Swan & BlockFi. At The Same Time

March 21, 2022

Fantom Foundation Responds To Andre Conje’s Departure

March 6, 2022

The Andy Milonakis NFT Show, EP. 20 – Goat Soup’s Dark Night Of The Soul

April 26, 2022

IRA Financial Breach: Hackers Snatch $36 Million From US-Based Fintech Startup

0

Bitcoin Hash Rate Balloons To Record High — Will Price Go Up As Well?

0

Ethical Blockchain: Are Crypto, NFTs And DeFi Bad For The Environment? Here’s Why They’re Not

0

Mexican Billionaire Says It Again: Buy Bitcoin Today — And Thank Him Later?

0

Mkango and CoTec Sign Definitive Agreements to Invest in Mkango, Maginito and to Collaborate in Rare Earth Technologies in United States

February 1, 2023

US Stocks On Track For Nervous Start As Traders Go Fed Watching: AMD Earnings Calm Investors

February 1, 2023

Societal CDMO Highlights Growth of Existing Customer Business Through Signing of More Than $6 Million in Work Orders During Fourth Quarter of 2022

February 1, 2023

Food Service Equipment Market Size Worth USD 46.38 billion, Globally, by 2027 at 4.1% CAGR

February 1, 2023

Categories

  • Binance (49,311)
  • Bitcoin (92,133)
  • Business News (97,532)
  • Cardoso (40,811)
  • Crypto News (48,603)
  • Dogecoin (40,811)
  • Ethereum (41,185)
  • Market News (85,454)
  • NFT X Metaverse (40,811)
  • Other alt coins (40,857)
  • Others (2)
  • Shiba in (40,811)
  • Technology News (84,887)

Coin Tori is the #1 Crypto and business blog you can always trust to feed you with the necessary infomation.

Facebook Twitter Linkedin Instagram

Categories

  • Business News
  • Crypto News
  • Technology News
  • Bitcoin
  • Binance
  • Cardoso
  • Other Alt Coin
  • Dogecoin
  • Ethereum
  • NFT X Metaverse
  • Shiba in
  • Market News
  • Others

Tool

  • Crypto Table
  • Exchage Rate
  • Currency Converter

All right reserved - Cointori

Designed By Gentry Stack

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent. Read More
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
bitcoin
Bitcoin (BTC) $ 23,085.19 0.88%
ethereum
Ethereum (ETH) $ 1,581.65 0.56%
tether
Tether (USDT) $ 1.00 0.00%
usd-coin
USD Coin (USDC) $ 1.00 0.10%
bnb
BNB (BNB) $ 308.20 0.62%
xrp
XRP (XRP) $ 0.404323 0.92%
binance-usd
Binance USD (BUSD) $ 1.00 0.05%
cardano
Cardano (ADA) $ 0.383278 2.64%
dogecoin
Dogecoin (DOGE) $ 0.092389 0.02%
matic-network
Polygon (MATIC) $ 1.09 0.38%
  • Home
  • Currency Converter
  • Business News
  • Crypto News
  • Binance
  • Bitcoin
  • Cardoso
  • Dogecoin
  • Ethereum
  • NFT X Metaverse
  • Other alt coins
  • Shiba in
  • Market News
  • Others
  • Technology News
Menu
  • Home
  • Currency Converter
  • Business News
  • Crypto News
  • Binance
  • Bitcoin
  • Cardoso
  • Dogecoin
  • Ethereum
  • NFT X Metaverse
  • Other alt coins
  • Shiba in
  • Market News
  • Others
  • Technology News