Bitcoin is already scalable, according to Blockstream developer
Core Blockstream developer Samson Mow revealed on his Twitter that the network of Bitcoin processes almost half a million dollars per second. According to Mow, the asset derives its bullish value not from its performance from transactions, but from high-value transactions and by offering a new financial paradigm.
A video posted by the Blockstream developer shows that Bitcoin processes by far the highest amount of value compared to any other cryptocurrency. While BTC handles around $ 500,000 in coins per second, the next network (BCH) manages only $ 29,000. Similarly, we see that ETH, LTC, and XRP process $ 23k, $ 7k, and $ 2k respectively.
While Bitcoin's dominance in this regard is not surprising, we see that the leading cryptocurrency has ushered in a new financial paradigm. According to Samson Mow, The question is not how many transactions Bitcoin processes, but how much value these transactions transfer.
Based on the opinions of the Blockstream developer, Bitcoin has no problem with scalability. While that may be the truth, we see the main blockchain developer focusing on the stats and not the big picture. After all, favoring value over speed just means that We encourage whales instead of the average user.
For some, Bitcoin may already be a fully functional platform. The network transfers value seamlessly. However, the cryptocurrency behaves more like a financial asset than a currency. Because of this, we may not see Bitcoin becoming a widely adopted payment method or currency. Instead, the current fate of Bitcoin leads it to become ‘Digital gold’ or in a financial asset used for speculation.
Blockstream developers focus on Bitcoin transaction value and not TPS
Whatever the true purpose of Bitcoin, the cryptocurrency truly brings a new financial paradigm that disrupts traditional systems. Now we can see a discrepancy in opinions among those who want to use Bitcoin as a currency or as an asset to create high-value transactions. But in the end, Satoshi Nakamoto proved that blockchain technology has a use case and that it works in a decentralized way and without permission.
Statistics for the ‘Estimated transaction value (USD)’ from Blockchain.com show us that Bitcoin made a lot of progress in 2020. Since the beginning of the year, the estimated total value of transactions on the Bitcoin blockchain network increased from $ 1 billion to $ 4 billion in November.
Such steady growth shows that Bitcoin offers a serious option for both users and investors. However, the asset still has to fight the transaction performance problem at some point. In your current capacity, the Bitcoin network cannot in any way support more users without imposing incredibly high fees. In such a state, it has the potential to reject its existing retail users and any potential for widespread global adoption.
Developers are working on a second-layer blockchain-based network that can dramatically improve scalability. Projects like the Lightning Network try to create a network of nodes that solves the problem. But until now, the developer team had no luck adding a large number of nodes and thus scaling the network.
But whether we end up getting access to scalability protocols or not, Samson Mow is confident that it doesn't matter. For him, Bitcoin has a completely opposite purpose compared to what the scalability:
“It is more of a store of value and a means of transferring wealth. It is not something you would use every day for payments. I've said this before, and people have gone astray and said that I hate Bitcoin, but Bitcoin is bad for payments.
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