Bitcoin (BTC) has had a tough rap over the last few months. The slowdown in transaction processing times and the increased fees that have come on the back of increased transaction volume (in other words, scalability issue) have exposed the technology’s primary flaws and, in doing so, led many to suggest that the flagship coin has had its day.
Well, not so fast.
Sure, bitcoin is down right now. At the time of writing, the price of bitcoin comes in at around $10,400 apiece, giving it a total market capitalization of a little over $175 billion. Sure, so-called competitor coins like Bitcoin Cash (BCH) are trying to muscle in on bitcoin’s superiority as a transaction coin. Sure, the potential for Ethereum (ETH) to overtake bitcoin from a market capitalization perspective (the so called Flippening) is increasingly becoming a possibility.
But forget all that for a moment. Bitcoin is going nowhere.
When you look at the current state of bitcoin, the two primary arguments for the flagship digital currency fading away to insignificance are those outlined above – that the transaction times are too slow and that the fees are too high. These are reasonable arguments given what’s happening right now on the network but as far as long-term implications are concerned, they are essentially insignificant.
Because bitcoin is only having scaling issues because it’s the only cryptocurrency that has scaled to such a degree that network scalability has become a problem. Let’s put that another way:
In order to have scaling issues, a coin has to scale.
None of the other coins (the transaction type coins, that is, for simplicity’s sake we’ll leave smart contract tokens like ETH out of this discussion going forward) have reached anywhere near the daily volume that bitcoin churns out and so it’s practically impossible to compare any one coin with bitcoin as far as issue resolution is concerned.
Roger Ver can host a live stream demonstration comparing BTC to BCH transaction times and fees but it means nothing. Of course the BCH network is going to be faster and cheaper right now – Bitcoin Cash is doing around 6% of the daily transaction volume that bitcoin is.
When BCH reaches $10 billion a day in daily transaction volume, conduct the same like for like comparison and you’ll get very different results.
But there’s another, more important point to make here.
Above, we said that in order to have scaling issues you’ve got to scale to a point where these issues become apparent. The same is true for the following:
In order to solve scaling issues, you’ve got to have scaling issues.
And it’s this point in time that bitcoin is at right now. There are numerous solutions being implemented today (SegWit, Lightning and more) that will reduce transaction fees and processing times on the bitcoin network. These solutions aren’t going to happen overnight – they are complex technological developments that take time to integrate and, perhaps more importantly, integrate correctly – but the integration is happening right now and it’s not going to be long before they are in place.
And once this happens, bitcoin will become the only cryptocurrency not only to have had scalability issues, but to have overcome these issues.
The mainstream interest in bitcoin over the last six months or so has been good in many ways, but it’s come at a time when bitcoin is having problems. This has led many new entrants to believe that these problems are permanent, since it’s their only experience of the bitcoin network. Other coins (Bitcoin Cash, we’re looking at you) are capitalizing on this misinterpretation.
Keep that in mind.
We will be updating our subscribers as soon as we know more. For the latest on BTC, sign up below!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of Flickr
Will Ripple (XRP) advocacy hike affect bitcoin dominance of China?
Currently, China is leading in Bitcoin mining industry by far, second to none for bitcoin mining power. Literally, it’s contributing over 70% of the network’s hash rate (a term that is used in describing the total processing power of a blockchain network). But how Ripple fits in here and what it has to do with that? We’ll talk about that a bit later below, let’s cover some in-depth facts about China’s dominance over Bitcoin first.
It’s a near-complete dominance by China on the BTC mining grid that has made it responsible for mining a majority of circulating bitcoins. A Beijing-based company, Bitmain Technologies, is highly responsible for extracting the significant part – more than half of the globe’s bitcoin, and alone, it has approached 50% of the total hash rate more than once.
The fact that China is controlling a majority of Bitcoin hash rate, clearly tells that it has the power of manipulating or merely destroy the bitcoin network if it gets enough support should it decide to take such a move. Therefore, this has led to serious concerns among countries including the US that China might get an edge in this cryptocurrency industry and possibly becoming a potential threat.
China is the biggest manufacturer of Bitcoin as well as cryptocurrency mining equipment. The reason behind the massive growth of mining farms in the country is because of cheap electricity bills.
Furthermore, the country has adopted several…
Bitcoin bull run momentum builds up; price breakout imminent
There is no doubt that Bitcoin is the most significant and largest success story in the cryptocurrency sphere despite the volatilities the powerful digital coin has been experiencing this year. 2018 has been a rough year for major cryptocurrencies including Bitcoin that has seen the prices of the virtual currency depreciate from a high of 20,000 US dollars in January 2018, to a low of 6,400 US dollars in October 2018.
Regardless of not much powerful performance, Bitcoin still maintains being the most sought-after virtual currency in the market. In totality, Bitcoin had a price appreciation of about 150,000 percent from its listing in July 2010 to the present day.
Bitcoins Brief Historical Evolution
In its lifetime so far, the number one ranked cryptocurrency has had its fair share of mixed bear runs, and bull runs throughout the years with the longest bear run being experienced in March 2014 and March 2015. However, in its history of up and down price progression throughout the years, gains have outweighed losses and Bitcoin has managed to record impressive highs of 20,000 US dollars as at December 2017.
As for this year, 2018 has been a nightmare for Bitcoin as its bullish gains have been low, recording shorter runs that have given rise to general losses attracting undue media attention from the general public and governments.
The Future of Bitcoin by Market Indicators
According to technical perspectives regarding Bitcoin price movements…
Institutional investment presumption to send ETH, XRP, and Bitcoin high
These days it points out that institutional investors slowly are gaining interest in the cryptocurrency domain. Practically, a real-world working model will attract institutional investors automatically from all over the globe. They will look for an opportunity to invest in the cryptocurrency industry if not necessarily in coins such as Bitcoin, Ripple’s XRP or Ethereum, and it seems like that moment is already at hand.
State of the Market
The past 24 hours have been stable for the crypto market as the entire market has seen steadiness in their trade. For that reason, the general market value has been lifted to $210.6 billion.
The state of the market has seen the price of Bitcoin go up by 0.7% to the $6,537 lifting its market cap to $113.2 billion. Bitcoin cash has stayed stable too at $466 representing a slight drop of 0.56% and the market cap being $7.7 billion.
Also, Ethereum price dropped 0.59% to $205.87 giving it a market cap of $21.1 billion, and as for Ripple (XRP), a similar trend was experienced whereby it dropped by 0.15% to stand just above 46 U.S cents making its market cap to stand at $18.5 billion.
The stability in the cryptocurrencies is a positive gain as that increases hopes and chances for the institutional investments.
Genesis Global Trading says it has loaned digital assets valued at more than half a billion dollars to institutional…
Using Blockchain with Benefits to Your Business: Simple Explanations
Elon Musk hits the world of cryptocurrency
Ripple’s David Schwartz: ‘The XRP ledger is decentralized’
Don't Miss2 weeks ago
Exclusive: Ripple (XRP) to be exhibited at SWIFT’s Sibos conference
Altcoins1 week ago
TRON TRX: A Perfect Way To Bring Games To Blockchain
Altcoins2 weeks ago
Electroneum (ETN) on the rise, can it make to highest market cap coins?
Altcoins2 weeks ago
Why is xRapid not bringing XRP price up?
Don't Miss1 week ago
Exclusive: Singapore to develop Ripple (XRP)-powered invoice trading platform
Altcoins2 weeks ago
You think Tron (TRX) looks good? It’s even better
Altcoins5 days ago
Electroneum (ETN) investors can have a broad smile on their face
Altcoins1 week ago
Moeda Loyalty Points (MDA) Up Over 300% This Week – But Why?