Satoshi Nakamoto, right after he wrote the whitepaper on Bitcoin, envisioned it as a payment system and a currency that would work entirely online. However, a lot has happened since its early days and Bitcoin’s core function has moved away from this ideal.. Even Bitcoin transfer fees have risen over the years.
Many now see and use Bitcoin as a store of value.. For this reason, Bitcoin, whose volatility is mostly upwards, has become an investor’s dream as it provides a very high return compared to other investment instruments out there.
However, as a payment system, Bitcoin is still heavily flawed and the main problems that stop its growth in this direction. has. Bitcoin’s scalability is hampered because it’s very slow and expensive compared to more traditional payment processing platforms.
Bitcoin transfer fees
Analysts at Bank of America have added to the debate about Bitcoin’s role in the global financial system.
The first point of discussion is that for Bitcoin transaction fees, miners have to confirm the validity of a Blockchain transaction.
In the first quarter of 2017, the fee paid $2.40 per transaction was only available in the fourth quarter of 2016. It was $0.024.
Bank of America Analysts Merrill Lynch:
“Fees are not strictly enforced like regular banking transaction fees, but if you don’t include the appropriate fees, they are charged by a miner. there is a serious risk that a transaction will not be processed.”
If you are making a bitcoin transfer, you have the right to determine the fee charged to the miners who will confirm the transaction during this transaction.. You can set this transaction fee to zero, but in this case the probability of that transfer not being made and hanging is very high.
The economics of mining is complex and necessary, but they play a role in slowing down Bitcoin as a payment system.
<
Currently, the reward for each new block mined on the Blockchain is 12.5 Bitcoins, that is $75,000 worth of bitcoins.
According to analysts, about 2,000 Bitcoin transactions are processed in each block, based on this information per transaction A base price of $37.50 ($75,000 / 2000) was obtained.
Although not calculating specific figures, analysts said that mine reward factors are likely to the true economic cost of a Bitcoin transaction.
Speed of transactions
When we looked deeply at the data, analysts also examined transaction speeds. They found an average waiting time of 10 minutes for 300,000 transactions per day.
In addition, they compared it to the Visa payment system, which processes 2,000 transactions per second with a maximum capacity of 56,000 per second.
Analysts said, “20,000 retail transactions per second. It will take approximately 100 minutes for one-second transactions to be processed on the Bitcoin Blockchain.”
When comparing the charges, analysts noted that the standard transaction fees of its processors such as Visa and Mastercard rose from 0.2 percent to 5 percent, depending on factors such as the size and location of the merchant. In addition to the $2.40 transaction fee, he said, taking into account the current industry fee of 0.20, a $1,200 transaction would be the minimum size for even Bitcoin to break.
As a result
<
Me rrill Lynch analysts decided that Bitcoin is a great concept, with Blockchain as its core technology.
However, so far, the obvious agenda of providing a “all-peer-to-peer version” for pure electronics doesn’t seem to have made much headway.” said.
cointelegraph
The conclusion of the analysis is that the processing speed in the bitcoin infrastructure is insufficient, once again telling us that the crypto money industry is just at the beginning and It clearly shows that it is open to improvement.. Bitcore, which we recently published a press release as crypto money news, comes into play at this point.. Working with a capacity that can do the total transaction that Bitcoin can do at all times in 3 days, BTX seems to be a candidate to be a solution to this problem of Bitcoin.
Tightening austerity with the pandemic, THY quits sponsorship of the Irish Cricket Team