Crypto 360°

Bitcoin (BTC) has a transaction rate of about 15000/h or about 4 tx/s. It is the max transaction rate, and it is exhausted with the current usage, and has been for four years, leading to the queues, recently 200000 tx waiting in the queue called the mempool.

The rate is artificially capped there, and the mechanism to do it is the blocksize of about 1.7 MiB (obviously also the block rate which is 6/h, but nobody wants to change that).

Bitcoin Cash (BCH) has no constraints, only the laws of nature, and temporarily also the limits of hardware and software. Our tx rate is 19 times higher currently, or 77 tx/s, with plans, people and resources to increase it, the work is ongoing. No consensus change is needed (low risk of split), but most of the node implementations need to synchronize the changes in the chat protocol to make it happen. (The nodes communicate with each other using the chat protocol)

The queues lead to users bidding up the tx fee to come to the top of the queue, with transactions often costing 2-5 USD (median) over extended periods lately. With expected inflow of users, which can take the coin price to 100kUSD or even 500kUSD, even the hedgefunds can be discouraged by the fees, except the very largest. Normal users will be pushed out, and sometimes without the opportunity to sell all of their value (depending on the size of the tx outputs or coins they own).

Increased requirements for hardware; storage, computing power and network, will keep some actors out of mining, but there will be plenty. There is not only the Google search engine, not only the Facebook social medium, not only the Amazon internet vendor. But to our advantage, the market for mining is one of the freest imaginable, with little government intervention (some taxes, some intrusion in the power price, some bullying) The internet giants referred to, can in fact take advantage of government intrusion in the form of antitrust laws or competition laws or anti-monopoly laws (properly misnomed to give the impression of giving increased competition, while the opposite is true). The near free market in bitcoin mining means that there will be many miners, and many more potential miners.

submitted by /u/ErdoganTalk
[link] [comments]

source https://www.reddit.com/r/btc/comments/kj67cz/the_tx_rate_is_absolutely_a_problem_for_btcs/

Crypto 360°

Thursday, 24 December 2020

Who sold all their BTC for BitcoinCash back when BCH was $2900 usd / 0.23 BTC? - Nov - Dec. 2017?

Polish Crypto Miner Prepares Its Services For South Korean Gamers

Only 12% Of Deutsche Bank Clients See Bitcoin Over $100K Next Year

Michael Saylor, Microstrategy CEO: #Bitcoin is the first engineered safe-haven asset running on the worlds's first digital monetary network. As investors lose faith in Gold & Bonds as safe haven assets, it makes sense for all firms to have a Bitcoin strategy.

The tx rate is absolutely a problem for BTC's store of value proposition, even with large actors replacing the normal users

Why is every post about BCH if this sub is literally BTC??

My new article about BCH and Menger monetary theory

Search This Blog