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The failure of BTC ?


maverick528

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Posted

We all here use BTC, and we all are more or less enthusiasts of cryptocoins.

But we can not be blind to some facts, I already said this many times in chat box, but wanted to put it here so that everyone can see it, and also have a discussion about it.

Bitcoin is a failure right now.

It fails to fulfill the promises that were made when it was created.

Why? Because for example if I want to buy a pizza with BTC, I need transactions to be always fast, I can not wait 1 day or 1 week for confirmations while Im starving. And there is also the issue with transaction fees. To move an amount of money equivalent to 5 dollars for example, I must pay 10 dollars. That does not make sense at all.

Blockchain technology has this fundamental flaw, there is a limited amount of transactions that fit on each block, and the arrival of each block takes a certain time. So if a cryptocoin wants to be used more than all traditional currencies worldwide, this two very important flaws must be solved:  1) time for transactions must be in the order of seconds, at most 1 minute. 2) the fee for transactions must be small compared to the amount you are moving, for example 3% of the original amount or less. 3) you must be able to move small amounts of money with no problems, for example 1 dollar.

Bitcoin was the first cryptocoin widely used, so more or less all the crypto coins that followed also used the same blockchain technology, or similar.

Patches and solutions for this blockchain problems are being developed, but will they succeed in correcting all this problems?.

There is another problem that will come in the future: when all bitcoins are mined, as it is planned, the miners will only get income from the transaction fees. This means that probably all the people and companies that invested heavily in mining equipment (and they have to spend also electricity keeping it running) will try to get more money from transaction fees, and this will mean increased transaction fees. If fee amount is already a problem, the future does not look very good.

So, what are your thoughts on this? Will BTC succeed in being used easily in daily life payments? How do you think present problems can be corrected ?.

 

 

 

Posted

I hope it will be improved since we all use btc. I just hate the fact that transactions are slow with having such fees. Also once btc is down all just follows it. We just hope to see some improvements for this year though.

Posted

those are my concerns also

when i met bitcoin price was not more than 100 bucks and those time fees were pennies but now fees realy high and keep increasing if you want fast transaction

i read segwit2 gonna fix this issue but ppl not using it i think

Posted

I agree with you @maverick528 btc is fail for daily transaction. Other than that, I think btc is like an commodity for invest right now..  like gold for example, people who hold them just need to sell when they need cash.

Posted

Everyone has a problem with transaction time and commission. I think when all the coins are mined, namely 21 000 000 as promised that more simply can not exist, the cost of bitcoin will soar above the skies, and it will be very expensive to cost even 1 satoshi, but it will be as difficult to buy or conduct a transaction, because the greed of the miners who want to earn their share on the transaction for the service of confirmation of the block. So either everything collapses, because masses of people will not be able to use bitcoin because of high cost, or will fly to the skies and will be used only by big business people, for which it is another matter

Posted

For transaction I think XRB is better than bitcoin. Because it has 0 fee and instant transaction speed.

Bitcoin can have this kind of value because it's the first crypto coin and the most famous one :P 

Posted

- Segwit exist on BTC blockchain since 2017, the problem is that lots of services still don't use it. If 100% or the network were using it, the speed of transactions will be a lot faster than now and fees smaller. Plus the lightning network to come in 2018 is suppose to make things even faster.

But it will not fix all the problems and if the world start using BTC on a regular basis it will still be slow as now. That's were the parralel with "gold" make more sense to me than just the monetary aspect. If BTC is used as a storage value (like gold irl) it will not have to deal with so much day to day transactions.

- BTC will be fully mine dozen of years from now. So every hardware will be dead before that anyway or at least replaced by new technologies who will possibly make things differents in the future. Think Ethereum for example. It was a Proof-of-Work like BTC (mining) and they are turning soon in a Proof-of-Stake coin, meaning no need for mining hardware anymore. BTC could "easily" do the same and people will be paid by staking the wallet and securising the network.

- "so more or less all the crypto coins that followed also used the same blockchain technology, or similar." Not really, lots of other coins use different blockchain technologies. Look at Tangle for IOTA for example, Hyperledger, Corda, Intel Sawtooth, ...

  • Moderator
Posted
14 hours ago, Kargai said:

- Segwit exist on BTC blockchain since 2017, the problem is that lots of services still don't use it. If 100% or the network were using it, the speed of transactions will be a lot faster than now and fees smaller. Plus the lightning network to come in 2018 is suppose to make things even faster.

But it will not fix all the problems and if the world start using BTC on a regular basis it will still be slow as now. That's were the parralel with "gold" make more sense to me than just the monetary aspect. If BTC is used as a storage value (like gold irl) it will not have to deal with so much day to day transactions.

- BTC will be fully mine dozen of years from now. So every hardware will be dead before that anyway or at least replaced by new technologies who will possibly make things differents in the future. Think Ethereum for example. It was a Proof-of-Work like BTC (mining) and they are turning soon in a Proof-of-Stake coin, meaning no need for mining hardware anymore. BTC could "easily" do the same and people will be paid by staking the wallet and securising the network.

- "so more or less all the crypto coins that followed also used the same blockchain technology, or similar." Not really, lots of other coins use different blockchain technologies. Look at Tangle for IOTA for example, Hyperledger, Corda, Intel Sawtooth, ...

When I said that more or less all cryptocoins use the same blockchain technology, its because at least all the "old-timers" cryptocoins like LTC, Doge, PPC, FTC, etc. were all built using BTC technology, and actually with very very small changes to it. Only recently things started to develop in other ways, and probably this is a consequence of developers paying attention to the mistakes that were made in BTC.....

 

Posted

Bitcoin, in other sense, not using as a payment option, but more likely as a trading asset in these days. If bitcoin doesn't overcome those two problems (transaction time and high fees), it might affect its versatility..

Posted

This is the main reason why this following altcoins are merely created for the sole purpose to correct Bitcoin's flaws; to provide more fast transaction. And so far for me ethereum has beaten bitcoin on transaction speed I dont know about other coins like ripple,iota and etc coz I havent used it.

Posted

Do the fees really have to be so high?

 

what i mean is.. it’s Not like there only happens 1000 Transaction a day. Even if the fee is on a low amount, they still get a lot, even if the fee is not that high.

thats a concept that still work until today. Banks are widely changed to free transactions. But you have to pay your account every month.

lets do the math:

one bank has like.. 10 million customers. The account costs like.. $5 a month.

that would be 50. Million dollars a month alone. Just for example. But under all these customers are different people. There are companies, special accounts or whatever.

if you put that in comparison to a fee of 3%, as @maverick528 said, it would be still a lot of money.

that means that the development of blockchain shouldn‘t bee only on the software. You need to make it more affordable in the end. And I think that will happen when the coins are mined. On the latest point when they have to.

bc no ones gonna pay a huge fee every time.

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