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Question #401

What does an increase in the number of active Bitcoin addresses reveal about network adoption?

Category: General
It signals a decrease in transaction fees due to fewer network participants.
It means miners get fewer rewards because active addresses consume block space.
It indicates growing user participation and wider adoption of the Bitcoin network.
It reflects higher blockchain security from more nodes validating each block securely.

Why is this the correct answer?

This is correct because an increase in active addresses means more unique wallets are sending or receiving Bitcoin, which reflects more people using the network, engaging in transactions, and broadly adopting the technology. For beginners, think of active addresses as foot traffic in a store: the more visitors, the more interest and adoption. While some addresses might belong to the same user, overall growth suggests increasing network usage, which is a key sign of adoption.

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