Two Problems with Bitcoin

2 problems with bitcoin

2 problems with Bitcoin affected trading this past week. The first problem is scalability and the second is accessibility. Those problems made competitors appear more attractive.

The first problem: Bitcoin scalability

The problem with scale was supposed to be solved by the introduction of SegWit2X. Over the last few years, more Bitcoin users have flooded the network, and this means the more transactions are taking place than ever before.

Bitcoin operates using a technology called blockchain. Imagine a long chain with each link processing critical information. That information is a transaction. Every transaction that’s taking place on the Bitcoin network is recorded in a block which is then attached to the rest of the chain.

Each block on the Bitcoin chain is I megabyte (MB) in size. One block is mined every ten minutes, and an average of around 2,000 transactions may take place on each block every three to four seconds. The size of the block has caused slow transaction speed; anywhere from 10 minutes to 1 hour and more.

Nobody wants to wait more than 10 minutes to an hour to go through. The solution was to initiate SegWit2X which would increase or to form a block of 2 MB. But, the introduction of SegWit2X was canceled last week.

As the above chart shows, LiteCoin and Dash are doing now what Bitcoin can’t.

The second problem: Bitcoin accessibility

As we said before to work with Bitcoin you need to First, Sign Up for a Bitcoin Wallet.

Investopedia suggests, “Before you buy Bitcoin, you need to download a Bitcoin wallet by going to a site like Blockchain.info, or to a mobile app such as Bitcoin Wallet for Android or Blockchain Bitcoin Wallet for iOS, and filling out an online form with basic details. A transaction shouldn’t take more than two minutes. Imagine buying a Big Mac and waiting that long. (Related reading, see: Basics For Buying And Investing In Bitcoin).”

Once you have a Bitcoin wallet, you use a traditional payment method such as credit card, bank transfer (ACH), or debit card to buy Bitcoins on a Bitcoin exchange (example: Coinbase). The Bitcoins are then transferred to your wallet.

“However you view Bitcoin, the reality is that its value is highly volatile,” says Sport Betting Dime. In the course of a week, a day, or even an hour, it can take a massive nosedive or make a huge gain. How do you know from day to day the value of your wallet? With a bank, you know how many dollars are in your account, with Bitcoin you know how many coins you have but not their value. Note, the value of the dollar is down 95% since 1913. The government keeps printing more dollars. There is an unlimited supply. Not so with cryptocurrencies.

We need to get to the point that digital currencies are so easy to use your Grandma would use them, like Paypal. That may be Dash Evolution. It will enable users to signup and access Dash from any device and transact as easily as you can with PayPal, but in a fully decentralized way.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s