Acclaimed crypto and blockchain Chinese journalist, Collin Wu has suggested possible reasons for the over 4,000 transactions in today’s bitcoin block – block 687249. This is the highest number of transactions ever for a bitcoin block since the inception of the leading cryptocurrency.
Ideally, the number of bitcoin transactions is always around 1,610, but today’s number is almost quadrupled. Wu postulated that the reduction in bitcoin block generation could be the cause. There has been a decline in bitcoin block generation because of a significant reduction in the bitcoin hash rate and continued China authorities’ clampdown on bitcoin miners.
Collin Wu tweet. Source: Twitter
In another development, Wu also reported that the NASDAQ index rose today while the overall crypto market fell by 4% today, with sports tokens experiencing the highest decline at 10%. He suggested that the ongoing European competition might be a reason for these figures as people transfer funds to gamble on matches in the competition, noting that the Chinese crypto community is enthralled by football gambling.
Bitcoin On Another Bullish Run?
Historically, bitcoin price and inflation in the U.S. are interrelated mainly because most people invest in bitcoin to avoid inflation. However, new reports suggest that inflation in the U.S. (which currently stands at about 5%) is now at a 13-year high.
A recent survey by the U.S. Bureau of labor statistics reveals that inflation has been rising steadily in the country since the beginning of this year.
The core price index, which doesn’t include food and energy, is now at a 29-year high, rising further by 3% last month. As these figures keep rising, individuals and institutions divert funds to assets with high intrinsic value. This explains why the S&P 500 rose to a new peak price of $4,300 on Thursday and bitcoin rallying gradually from its current price of about $36,000.
Why Is Taproot Lock-In Significant for The Bitcoin Network?
After the SegWit upgrade some four years ago, there has been no significant upgrade to the bitcoin network. But taproot is about to change that narrative. Taproot requires only 14 more blocks to be locked in.
Once locked in and approved before this year ends, taproot will enhance bitcoin’s smart contract compatibility and privacy. While bitcoin transactions are yet to be tracked easily with the current add-ons, it is only a matter of time before this tracking becomes less challenging as advancements in blockchain monitoring tools continue to develop.
But taproot makes it harder to track bitcoin transactions because it cloaks each stage of the bitcoin transaction process. Also, it lowers transaction fees for complex transactions.
Collin Wu confirms taproot activation. Source: Twitter
With taproot, any monitoring tool will only monitor a peer-to-peer transaction but can’t monitor any other transaction process. A bitcoin core developer, Gregory Maxwell, proposed this upgrade three years ago and this upgrade is now considered hugely crucial to the privacy of bitcoin blockchain transactions.
Despite this positive development, interest in Chinese crypto industry continues to fall fast amidst stricter censorship on crypto-related actions.