It's been very busy around. The fluctuating exchange rate on the stock exchanges brings dramatic drops and high growths. The BTC price surpassed $ 7,000 a week ago. In the course of yesterday, it was attacking the $ 7800 limit, when the market responded to a positive change that bitcoin would not divide this year.
Insufficient capacity of Bitcoin
The most famous cryptocurrency suffers the major problem - the lack of network capacity. All transactions are written on the network in Blocks Blocks ("distributed financial books"). One block has a final storage capacity for transaction information (today 1 MB) and the number of blocks itself is limited. Blocks, according to a complex (and increasingly complicated) mathematical formula, must first be computed and the complexity is set so that one is averaged about every ten minutes.
Capacity and block limitations affect your network capacity. Today, the ceiling is about 350,000 transactions per day, ie. 4 per second. Card companies such as Visa are able to process as many as thousands of them at the same time. As a result, the sent bitcoins have a different priority given by how large a person pays a transaction fee. Whoever does not want to wait, has to pay more. This is why the fees have soared so far this year, and for each transaction, for example, this week spent an average of $ 6. It eliminates Bitcoin from the game in terms of small businesses and sending lower amounts.
Bitcoin Cash was created
The community is aware of this and has proposed several steps to increase the capacity. But the community is not uniform and the proposed steps do not suit everyone. In August, therefore, the so-called hard fork came, a new Bitcoin Cash cryptomate was created. It started with the same blockchain (so the current BTC holders also had a BCH), but all future transactions are already running on the Bitcoin blockchain independently. Bitcoin Cash has blocks of 8 MB. Today it is the third largest cryptome. The price is around $ 600 per unit.
Bitcoin Cash keeps a price of around $ 600
Segwit or a small upgrade has already gone
Most of the community wanted gradual changes. Also, in August, a new Segwit technology was introduced into the network, modifying the block data structure, which can store up to twice the number of transactions with new versions of the software in 1MB blocks. The blockchain itself does not change and is backwards compatible, so Segwit speaks like a soft force.
Bitcoin was already close to over $ 8,000
Here we go back to the first paragraph. The leading companies in Bitcoin yesterday decided to suspend the deployment twice, and splitting will not happen yet. The community is still united and without a consensus, the development of the BTC can go to the flower shop. At the same time, they add that this status will not last forever and the capacity will need to be increased. The division will surely happen once. Just not this year.