Explanation of Increase in Bitcoin Prices Due to Increased R & D

Sella    11:03 AM    News    Comment   

At least that was what Electric Capital's study recently showed. The San Francisco-based crypto asset management company found that the number of developers working on public blockchain has doubled since 2017. In January 2017, there were a total of 2,190 developers working on public coin projects. That number increased to 4,352 at the end of January 2019. This gap implies that the technology underlying crypto is being developed at full scale despite bearish market conditions.

"The number of active monthly developers or developers fell by 4 percent while the market fell more than 80 percent," said Avichal Garg, co-founder of Electric Capital. "Developers entering the crypto ecosystem continue to develop despite current market conditions."

Ethereum is more active than Bitcoin

According to Capital Electric, Ethereum has the largest development team. At the same time, Bitcoin is in second place.

Development activities on several platforms, including EOS, Dogecoin, Litecoin, Bitcoin Diamond, and Bitcoin Gold, are dead or have almost no activity.

Dev's activity is a Bullish Sign

Independent research published in January 2017 found a direct relationship between development activity and positive weekly price movements. Sha Wang and Jean-Philippe Vergne noted that increasing crypto development activities by one standard deviation provides a weekly yield of 9%.

Unlike companies, which typically employ researchers and private developers to oversee the improvement and innovation of their products / services, a decentralized project such as bitcoin depends on the participation of volunteers. From time to time, developers send their core enhancement proposals to the bitcoin GitHub repository - called commit. Commit with maximum voice will be integrated into bitcoin mainframes. In return, their author or developer will receive a prize.

Sometimes, the rejected code directs the writer or developer to create a separate project. For example, Roger Ver's proposal to increase the bitcoin block size from 1 MB to 8 MB made him create another coin - Bitcoin Cash.

High volunteer participation shows that the project in question is going in the right direction. End users consider such projects to be more durable and strong. As a result, they become more confident in holding the project's basic assets.

Increased crypto development activities - specifically, bitcoin - are the most important fundamental factors to consider. Active research and development is the key to attracting so much money into this sector, thereby increasing the value of the underlying asset itself.