In the world of finance and investment, information is gold or, in this case, should we say, digital gold. This holds especially true when delving into the realm of Bitcoin – a realm defined by intricate complexities and powerful potentials.
Whether born of personal curiosity or anchored in an investment thesis, sourcing and analysing data from the Bitcoin blockchain can be transformative. This practice not only aids in understanding the dynamism of Bitcoin but also plays a vital role in shaping sentiment and influencing investment decisions in the Bitcoin market.
Popular metrics in Bitcoin analysis
There’s a trove of metrics that investors and analysts use to gauge Bitcoin’s performance, health, and market sentiment. These include transaction volume, hash rate, active addresses, transaction fees, and many more.
Each of these metrics offers a unique perspective on the state of the Bitcoin network and its potential future direction. It’s like looking through different lenses, each one revealing a different aspect of the Bitcoin ecosystem.
The Importance of cross-referencing data
However, no single metric or data source should be taken as the gospel truth. The decentralized nature of Bitcoin means that data might vary across different sources. Hence, it’s imperative to cross-reference and compare findings from various sources to gain a comprehensive and accurate insight into Bitcoin’s status.
It’s about getting the full picture rather than settling for a single puzzle piece.
Bitcoin blockchain stats
The purest and most direct way of sourcing Bitcoin data is by running your own full node and using a block explorer. By running a full node, you download and validate all transactions and blocks in the Bitcoin blockchain, thereby becoming part of the decentralised network. This gives you access to the most accurate and timely data directly from the source without relying on third parties.
You can inspect transactions, verify payments, and see the overall state of the blockchain. On the other hand, a block explorer is a tool that allows you to navigate through the blockchain. You can explore block details, transaction histories, wallet balances, and more.
Using a block explorer with your own full node ensures that the data you are viewing is accurate and secure, increasing your understanding and visibility of the Bitcoin network while also reinforcing your role in maintaining its decentralisation and security.
If you’re not running a full node or you’re looking for additional data interpretation that a block explorer simply cannot provide, then third-party data providers would be your next step.
|Clark Moody Dashboard
|Time Chain Stats
Lightning network stats
When it comes to the Lightning Network, a second-layer solution to Bitcoin’s scalability challenge, data becomes even more elusive. Given the off-chain nature of Lightning transactions, data providers can only offer a sample, not the entirety of the network. This is a crucial nuance to remember when integrating Lightning network data into Bitcoin analysis.
If you want to dive into Lightning, you can start by reviewing data from various Lightning Network explorers or third-party providers.
|Look Into Bitcoin
|LN Router Graphics
Wrapped Bitcoin stats
Wrapped Bitcoin (WBTC) is another element to consider when evaluating the Bitcoin network. Several altcoin chains have created this Bitcoin derivative and use it to trade on on-chain markets. It’s a way to use Bitcoin value within different ecosystems. Each WBTC is backed 1:1 with a corresponding Bitcoin, which is held in reserve by a custodian.
Despite the shortcomings of Wrapped Bitcoin, it does represent well over 150 000 coins and is far larger of a market than the likes of the Liquid Network or Lightning Network in terms of value locked. To review wBTC you can use the block explorers of the various chains that hold the asset or use get a consolidated view with the help of third-party services.
|Into The Block
Ordinals and inscriptions stats
Ordinals and inscriptions are a new way of using the Bitcoin network, and like it or not, people are spending a considerable amount of Bitcoin trading these assets and inscribing data into the blockchain. If this use case for block space continues to grow, it will have a significant effect on the Bitcoin market going forward and might be of interest to some investors. Again you could use an ordinal explorer to track this information or leverage third-party data providers like the ones below.
Nostr is not a financial network but a communications protocol, never the less it has joined the Bitcoin data conversation. As a tool allowing anyone to publish and subscribe to events or messages, Nostr can add an additional layer of understanding to the depth and breadth of Bitcoin’s use cases, from zaps to orchestrating more complex transactions.
Keeping track of Nostr, the number of users, and the amount of funds being traded via events holds some value for those who want to monitor the reach of Bitcoin.
Sourcing and analysing data from the Bitcoin blockchain and its adjunct networks is both a science and an art and can also introduce a lot of complications. It demands diligence, discernment, and an appreciation of the layered complexities of Bitcoin.
As investors navigate the Bitcoin landscape, these data-driven insights can become their compass, guiding them through the ever-changing world of Bitcoin. Or you could just use these services to source information when you have to argue on Twitter and receipts are required.
Where do you source your Bitcoin data?
Do you use any of the services on this list, or do you never trust any source and only use verified data on your node? Are there any reliable Bitcoin data service providers you think should be added to this list? Let us know in the comments down below.