3 ms·

You can go to any crypto-trading forum (i.e. /r/bitcoinmarkets) circa 2012 and find that this was common knowledge. Everyone knew/knows that 'Chinese' volume w

You can go to any crypto-trading forum (i.e. /r/bitcoinmarkets) circa 2012 and find that this was common knowledge. Everyone knew/knows that 'Chinese' volume was mostly fake because the exchanges made it easy to do so with low fees. Whether the exchange simply let this happen or actually deliberately created the fake volume was immaterial. UTXOs remain the best way to track overall market use and movement. Through this, you can plainly see that the last year of market activity has been thin, just traders competing with each other. With one notable exception in Nov/Dec of 2018 causing the big dump. This was one of the most singular events in Bitcoin history, with old coins fueling a major drop in price.

tudorconstantin 8y ago
What happens on exchanges doesn't have to be settled on the blockchain and higher exchange volume is not necessarily reflected in utxo volume. That being said, it looks like the whole 2018 had more utxo activity than 2017, and things seem to get even more intense lately: https://utxo-stats.com https://utxo-stats.com
nosuchthing 8y ago
UTXOs remain the best way to track overall market use and movement. UXTOs can be mass produced in bulk from single users controlling and scripting multiple wallet addresses. Looking at the Winter 2017 UXTO transaction logs, it's pretty clear a single entity was (can/is) coordinating upwards of 10%-50% of the volume, the clearest examples of this are throughout December of 2017.