[heading]Bitcoinomics, Chapter 6: The Market[/heading]
“I am getting less and less sympathetic to individuals who refuse to upgrade their payment methods.” – Trace Mayer
•Market Capitalization – The “market cap” represents the historical number of total bitcoins currently existing multiplied by the USD price.
•Network Hashing Rate – Signal of hashing difficulty and the approximate number of Giga hashes per second (computation speed) at which the network is performing. This is calculated by dividing maximum target by current target where target is a 256-bit number, while difficulty measures how hard it is to find a new block compared to the easiest it can ever be. Difficulty changes every 2016 blocks (or two weeks) and to find a block, the SHA-256 hash of a block’s header must be less than or equal to the current target for the block to be accepted by the Bitcoin network.
•Hash Rate Distribution – This estimation of hash rate distribution amongst the largest mining pools. The integrity of the network depends on a single actor never obtaining 50% of the overall hashing power. A more detailed alternate chart using a different data source, IP address that begun the block, can be found at Block Origin.
•Daily Transaction Volume – This measures the estimated transaction volume per day in US Dollars. An alternate graph visualizes bitcoin network activity in real-time, including transactions, block creation, and currency trade measured in BTC.
•Average Transaction Confirmation Time – The average (mean) amount of time in minutes that it takes for a transaction to be accepted.