Bitcoin has reached an astonishing milestone in 2024, surpassing $19 trillion in total network transactions. This significant uptick represents a remarkable comeback, more than doubling the $8.7 trillion recorded in the previous year and reversing a two-year slide that followed the $47 trillion peak seen during the 2021 bull market.
Highlighting this achievement, Pierre Rochard, vice president of research at Riot Platforms, remarked that Bitcoin has decisively proven itself to be “both a store of value and a medium of exchange.” This boom in transactions can be attributed to several pivotal events throughout 2024:
- The Introduction of a Bitcoin ETF in the US: This launch made it much easier for institutional investors to enter the market, significantly boosting adoption and liquidity.
- The April 2024 Halving Event: This crucial moment reduced the issuance of new BTC, generating fresh interest and spurring price increases.
- A New All-Time High Price: Bitcoin’s value surged to an unprecedented $108,000, igniting market enthusiasm and demand.
These developments have solidified Bitcoin’s reputation, establishing it as a premier financial asset that is not only reliable but also increasingly popular among both individual and institutional investors.
Rochard’s analysis also illustrates how Bitcoin’s transaction volumes have evolved over the past six years. Facing a tough market in 2022 and 2023, the network has made a strong recovery in 2024, rekindling confidence and activity.
In tandem with soaring transaction volumes, Bitcoin’s hashrate — a measure of the computational power securing the network — also reached extraordinary heights. On January 3, 2024, the hashrate peaked at 1,000 exahashes per second (EH/s). Although it later stabilized around 775 EH/s, this significant milestone underscores the growing security and resilience of the network.
US-based mining pools now account for over 40% of the global hashrate, with significant contributions from renowned groups like Foundry USA and MARA Pool, who mined over 38.5% of all Bitcoin blocks in 2024. While China-based pools still control majority power, the competitive atmosphere and geographic diversity of miners add to Bitcoin’s appeal and vibrancy.
Considering the pseudonymous nature of mining, tracking the geographic distribution of Bitcoin’s hashrate can be tricky. Mining pools may be located in specific areas, but their contributors often span the globe. This decentralized structure is central to Bitcoin’s ethos, reflecting its commitment to resilience and neutrality.
With increasing adoption and recovering transaction volumes, Bitcoin’s prospects look bright as we glance into the future. Some key areas to keep an eye on include:
- Further Adoption of Bitcoin ETFs: The impact of these funds on market liquidity and institutional investment will be critical.
- Global Hashrate Dynamics: Understanding how mining power is distributed globally will be vital for maintaining Bitcoin’s decentralization.
- Price Movements: With Bitcoin hovering around $98,926, experts will closely monitor the macroeconomic factors influencing its pricing.
MARA, previously known as Marathon Digital, has furthered its impact in the Bitcoin mining industry with groundbreaking initiatives. In 2024, they announced lending out 7,377 Bitcoin, generating modest returns while strategically offsetting operational costs amidst the challenges of fluctuating profitability.
The firm made headlines by becoming the first publicly traded Bitcoin mining company to achieve 50 EH/s of computing power, with a current operational hashrate of 53.2 EH/s as of January 3, 2025. Their significant investments in infrastructure and technology have enhanced both efficiency and the overall security of the Bitcoin network.
MARA’s aggressive accumulation of Bitcoin reflects a forward-thinking strategy to utilize cryptocurrency as a treasury reserve asset. In 2024 alone, they acquired 22,065 BTC at an average price of $87,205 each, amassing a total of 44,893 BTC. This achievement was partly funded through $1.9 billion raised from senior convertible note offerings, signaling strong financial backing.
Industry figures such as MicroStrategy co-founder Michael Saylor have praised MARA’s approaches, hinting that the firm could soon find its way into the Nasdaq 100, a coveted index for the largest publicly traded companies.
As the Bitcoin mining landscape grows more competitive, MARA’s focus on innovative strategies positions it for success, allowing it to overcome the mounting challenges in the sector.
Overall, Bitcoin’s 2024 performance has laid a resilient foundation for the future. With solid infrastructure, enhanced institutional interest, and a thriving community, Bitcoin is redefining the contours of finance as it advances into the coming years.
