Home etftrends.com Bitcoin Blockchain Expanding at Prodigious Pace

Bitcoin Blockchain Expanding at Prodigious Pace

It’s not just bitcoin’s price that’s expanding.  The blockchain on which bitcoin resides – one of the pioneers in the space — is also rapidly adding heft.

The expansion of the bitcoin blockchain could bring with it a variety of implications, including solidifying the overall usage case for blockchain technology. In turn, such shifts could stoke newfound interest in assets such as the Amplify Transformational Data Sharing ETF (BLOK). The $673 million BLOK turned six years old in January and has made a name for itself as one of the rising stars among equity-based, crypto-correlated exchange traded funds.

Those benefits have been on display this year as the ETF has gained nearly 18%, helped by bitcoin notching record highs in March and a fresh flirtation with those highs in recent weeks. BLOK is a departure from many of its rivals in that its allocation to bitcoin miners — the crypto stocks regularly found in ETFs — account for just 21% of the fund’s roster. That implies BLOK has other avenues for benefiting from blockchain expansion.

Bitcoin Blockchain Could Boost BLOK

BLOK allocates more than a third of its roster to transactional and private blockchain companies, indicating the fund has some leverage to the theme of bitcoin blockchain expansion. Data confirms that expansion has considerable momentum.

“Bitcoin’s blockchain size was close to reaching 5450 gigabytes in 2024, as the database saw exponential growth by nearly one gigabyte every few days. The Bitcoin blockchain contains a continuously growing and tamper-evident list of all Bitcoin transactions and records since its initial release in January 2009. Bitcoin has a set limit of 21 million coins, the last of which will be mined around 2140, according to a forecast made in 2017,” reported Raynor De Best for Statista.

The bitcoin blockchain, an area of core competency for some BLOK holdings, serves other functions. Notably, it’s the record-keeping standard for transactions denominated in the cryptocurrency and its roots in the proof-of-work concept prevent double spending of bitcoin. While proof-of-work is criticized in some crypto circles, it is useful on multiple fronts and potentially potent for some BLOK holdings.

“Bitcoin’s reward system is based on its proof-of-work mechanic and serves two purposes: it attracts participation and incentivizes it. Both of these lead to a large network of participants which also helps prevent double spending,” according to Investopedia. “By awarding the worker who proposes a block and wins the hashing competition with bitcoin, the developers believed that more people would want to join and add their processing power to the network.”

For more news, information, and analysis, visit the Crypto Channel.

newETFs.io respects the hard work of others and gives all credit to the remarkable folks at ETFTrends.com. This excerpt/article was pulled from their RSS feed; click here to view the original. Please note that on occasion, the RSS feed will not have the author. When this happens this site defaults the author to "News". Make no mistake, this excerpt/article was not created by newETFs.io, it was simply shared with you.