My thoughts on Bitcoin's network congestion

2019-4-5 19:50

Here's a wee chart below to illustrate my thoughts on Bitcoin's transactional network the last two years.

The Bitcoin network hasn’t been able to keep up with peak transactional demand since 2016, since 2017 it hasn’t been able to keep up with the AVERAGE transactional demand.

Meanwhile our current scaling path is Segwit which relies on a the entire industry to organically adopt, and this will take some time. And here's our progress thus far...

My guess, optimistically, is we have at least one year of pain until Segwit gets adopted widely enough to alleviate serious congestion. (The Lightning Network thereafter should allow even more pain to be lifted but this is probably an even slower adoption curve due to its additional complexities for user interation.)

Until then, I suspect keeping blocks this small will have a side effect of the most dangerous type of centralisation as speculators keep large funds in exchanges, also known as crypto-asset banks, rather to risk sending funds into the mempool abyss awaiting processing. Very ironic.

Thoughts on the Markets?

I'm not entirely sure what will happen. There's really two effects which I think will superimpose to form the general picture of 2018.

A tidal wave of money

I'm expecting a tidal wave of money to hit the crypto-asset markets. This is because institutional investors will be pretty much forced to allocate a fraction of their combined trillions into a new non-correlated asset class to hedge risk, and only in 2018 are the crypto-assets big enough to carry this money.

They'll go to the largest liquidity pools, which traditionally means Bitcoin but in 2018 to a lesser degree the option is there for highly liquid altcoins like Ethereum and Bitcoin Cash. I suspect Bitcoin will be the the front runner as $200 transaction fee will hardly deter a hedge fund.

The altcoin waterfall effect

However in early 2017 when congestion forced the transaction fees up and speculators could not sweep the scaling debate under the rug, we saw a waterfalling of money into altcoins. This could happen again.

My best guess?

Everything goes up. But particularly:

High liquidity crypto-assets Protocols that promise scaleability Protocols that promise governance

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 95101.09 (-0.10%)
Объем 24H $42.95b
Изменеия 24h: -2.03 %, 7d: -9.30 %
Cегодня L: $94782.14 - H: $95637.28
Капитализация $1882.985b Rank 1
Цена в час новости $ 5022.72 (1793.42%)

transactional network bitcoin hasn keep thoughts demand

Источник: woobull.com

transactional network → Результатов: 18


Фото:

Ethereum Founder Vitalik Buterin Highlights Shocking $15M Worth of Transactional Spam

Vitalik Buterin has spoken out on the topic of a mysterious congestion of transactions on the Ethereum network, of which he is the founder. Buterin estimated in a message posted on his Twitter account yesterday that the recent spate of ERC-20 smart contract transactions, which seemingly serve no purpose upon inspection, have cost the creators of […] Ethereum Founder Vitalik Buterin Highlights Shocking $15M Worth of Transactional Spam was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

2018-7-18 15:29


Партнеры Currencies.ru

Аналог Notcoin - Blum - Играй и зарабатывай Монеты



Реклама на Currencies.ru

Самое свежее на Currencies.ru

iDEGEN hits $1.6 million as AI tokens bid to join altcoin party

iDEGEN has hit the crypto market running, riding a major bullish mood engulfing the entire market. This comes as traders cheer Bitcoin’s massive and record monthly green candle. As the benchmark crypto looks to break the sell wall at the $100k level, several altcoins are toying with levels that have traders excited.