Cryptocurrency of the year faces fresh hurdles as prices hike again.
2017 can be counted as the year Bitcoin became a global phenomenon. By any measure, the crypto currency’s rise in value in the last 12 months has ensured that anyone with at least a handful of the currency in their hands has become rich. No one could have imagined this type of rising just a year ago, even by the most ardent of their supporters. However, with every gain there comes other problems to deal with at the same time. The price of transferring a fraction of a Bitcoin, as a result, has also risen.
Four years ago, one Bitcoin cost $20, and now, the prices have increased so much that a simple transfer of one Bitcoin today now also costs $20. Now the system has been applauded for tackling so many of the old financial institutions including the Western Union and the odd bank, but the transfer fees to show that the system does have its negatives.
Bitcoin has grown by leaps and bounds this year so much so that any transfer which is not more than a couple of hundreds is highly costly to the user. The debate about whether Satoshi, (rumored beginner of Bitcoin), started the service as a micro-transactional system. The service is clearly untenable for anyone sending less than thousands, but even armed with all this information, Bitcoin hard supporters are still not seeing the signs and the bad parts.
On both the dark-net and the common web, discussions and debates on the issue of transaction fees have started and they are raging on. One user, infuriated by the transfer fees hikes wrote on the social platform, Reddit, that he found it hard to comprehend that a so-called currency of the future would not allow him to send a simple $5 to a friend without paying at least $15 to complete the transaction. More enlightening were the comments, one of which acknowledged the problem but also gave some advice on how to tackle the problem.
The problem with the new $20 fee for transfers is that micro transaction on the platform is entirely infeasible. With time, Bitcoin transfer will eventually get to a point where the only time it’s suitable to transfer the money and not feel any cost is when it is $10 million. Eventually, even mid-level transactions will be at risk and they too will suffer. It also brings forth the new question, is Bitcoin now only a store of wealth because it’s good, or just because people can’t afford to send the money anymore.
Compared to other cryptocurrencies such as Ethereum and Bitcoin cash, Bitcoin still has its advantages. As mentioned above, 2017 has definitely been the year of Bitcoin and it’s safe to say every other cryptocurrency is riding on that wave. It has set the standard and is on everyone’s lips right now, but eventually, issues like this will have to be addressed. As of now, Bitcoin continues as a hot product, a hot mess that is.