As bitcoin has been thrust into the spotlight, some of it's major weaknesses are being exposed.
It's large network fee being one of the biggest.
Check out the current divergence in fees:
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This is precisely why bitcoin cash was created in the first place.
Bitcoin's inability to deal with this large transaction fee might end up ultimately leading to it's demise.
Bitcoin still has potential as a decentralized, unhackable, store of value, but it's overall potential is limited if that is it's only appeal.
I think it's time for a fee-less, and nearly instantaneous cryptocurrency to stake it's place among the top 10 cryptocurrencies in the world. I'm looking at you steem.
Oh and by the way, there's this:
https://investorplace.com/2018/01/4-bitcoin-alternatives-that-you-need-for-2018/#.WlpJFPmnGM8
Check out the 3rd coin down. Steem gets a shout out. ;)
Stay informed my friends.
Follow me: @jrcornel
Things on the internet surge and die very quickly. Just look AOL, Yahoo, MySpace. And Bitcoin is just dying in this exact moment. Just loonk at the Market share plummeting. Now it is at less then a third 33%. Tomorrow it will be even lower.
Sure, nevertheless BTC could surge another time and 2018 could become a decisive year for Bitcoin with the advent of Lightning!
Bitcoin is that candle which burning itself to show a path to altcoins.
1.60% @pushup from @discernente
This post has received a 2.64 % upvote from @boomerang thanks to: @discernente
I'm done with BTC. I'm cashing out. I've had too many transactions held up and cancelled because of "low transaction fees" as if .004 BTC is too low to be processed.
BCH and ETH are my new go-to coins for transactions.
For me, with this much fees, bitcoin is living its last days. That is insane man, like you have to pay more than $15 for the transaction of $12.
RIP bitcoin.
I totally agree with the OP if BTC does not change status-quo, its days are numbered.It is already losing market share, now 32% and used to have 60%.
On the other hand, STEEM is the cryptocurrency with the most number of utilities and functionalities.
The following gif is made by me to compare STEEM's zero fees with top cryptocurrencies. Please feel free to use without any attribute.
For more: https://steemit.com/steem/@riseofth/comparison-of-steem-s-speed-scalability-and-fees-with-major-cryptos-please-use-them-all-over-the-internet
The transaction fees make bitcoin a wild horse hard to tame
I'm just going to put this here.. https://www.coindesk.com/lightning-bitcoin-scaling-tech-really-know/
Agree with most if what this topic has, but at the same time it's all been said before when BTC hit 1k, 5k, etc.
I'm hoping Steem jumps as I'm new to puting Money into crypto and have found myself here, but I still think BTC will be top dog for a while.
I couldn't agree more with you
I do understand that bitcoin transaction fees can sometimes get high, but as of the moment of writing this comment they are actually only about $5. If you go here: https://dedi.jochen-hoenicke.de/queue/more/#2h you can see that the best price is around 160 satoshis per bitcoin, and that could get confirmed the next block. Every time the price has a major, fast change the mempool gets a lot more transactions but within a few days it clears out (to somewhere around 120, 140, or 160) leading to around $4-6 fees. Of course, I wish it was nothing but sometimes it's better just to wait before sending a transaction (Of course, if the price went up a lot, you may want to pay the higher fee to sell more quickly)
So basically Bitcoin is only usable when there are relatively few transactions. Does not bode well for the promise of using it in place of cash / credit transactions. The fees are also only half the issue, since the long confirmation times also make it unusable. Right now it can barely provide decent service processing only investment transactions, so what happens if/when people actually start using it for payments? The Lightning Network is the only hope for Bitcoin to remain a contender for being the cryptocurrency of choice, but even that seems like a kludge to fix a poor design. With so many better blockchain technologies out there my money is on the altcoins - only problem is with so many it's hard to predict the winner(s)
I have been using bitcoin for payments for over a year now (gyft.com) and earlier, the transaction fees were lower but even now as long as the price settles down for even a day I can usually get a transaction in for under $10, sometimes even only $5. Yes, this is a problem simply because if the price rapidly goes up a lot it would be harder to spend, and it is important that the lightning network get developed as quickly as possible in order to increase the ability for bitcoin to be used as a payment method. With the fees I mentioned above, and in a low transaction time (which happens daily to once every few days), a transaction would most likely confirm within 10-30 minutes (Any more would simply be because a block has not been found in a while). Quite honestly, I have tried using ethereum before (for cryptokitties), and I was shocked when my transaction fee was evaporated and the transaction itself never occured (That is, it ran out of gas). At least with bitcoin I know that it could just be in the mempool, and if I wanted to I could put it into a transaction accelerator.
there is no future with such ridiculous fee amount
No, there is no future because BITCOIN is ruled and controlled by few miners in china and they do not allow any good change to happen to BTC, because the slower it is -the more they get BTC from mining.
The Chinese Miner is moving out to other countries now. Hope Bitcoin transaction fee reduces soon.
Lool, you sheep need to get more educated, it is not really the miners, the developers at AXA/blockstream/ main BTC core have publicly stated they don't mind high fees (the blocks are full nothing can be done ATM...)
Nice story
It's simple, bitcoin doesn't have a future. While bitcoin cash is better, I doubt it will be the next #1 coin since there are much better alternatives.
*shitcoin trash
u like ur btc slow huh
btc xfers just fine with bitpay wallet or mycelium...nearly instant. true story.
Hey yato! the god of calamity!
Love that anime!
Hey yato! THE GOD OF ''CALAMITY''
Love that anime!
Heyy, I'm the god of fortune now! >:(
I agree with you, yato, that bitcoin probably doesn't have a future. One simple question makes me think this: why would we hold onto a worse technology than go with other cryptos who were born with better technology already?
I think it's the result of:
EDIT: 5. Bitcoin's name
Yup I agree with all your points, especially having to buy bitcoin before alts. Once people can buy alts straight from fiat without paying huge fees that may very well end bitcoin's #1 market cap reign. I followed ya back btw.
Bitcoin will survive. The technologoical problems will be solved. Too many people have declared it dead. With every attempt to kill it it gets stronger.
See Bitcoin obituaries to realize that this FUD about its demise goes way back:
https://99bitcoins.com/bitcoinobituaries/
BTC will definitely die. It is just a question of when. Will it be in the next 12 months due to transaction fees? Or will it be next 12 years once SHA2 encryption is cracked.
There will be far superior alternatives in 10 years for sure, arguably there are many superior alternative blockchains already up and running today.
I think Bitcoin will survive, but the growth will be limited vs. other projects. Or maybe it goes the way of Myspace. Who knows.
The way I understand bitcoins death is kinda Like myspace's tbh.
No, there is no future because BITCOIN is ruled and controlled by few miners in china and they do not allow any good change to happen to BTC, because the slower it is -the more they get BTC from mining
Bitcoin 2.0 looks like it's gonna change a lot of what people are hating on it for. Can't wait to see what happens there.
I'm definitely interested in what the lighting network will do for btc, but imo it will just bring centralization.
Hi Yato, Iv been following your responses so far and I hate to say it but i tend to keep agreeing with all that you are saying.. if you had to pick three what do you propose as better alternatives ?
Well, I'm definetly not an expert so don't take my word for it.
Well, my top three picks are steem, IOTA, and EOS. I also really like monero.
I also have investments in bch and ltc since they may grow.
this is not financial advice
I don't mean it in a way "boohooo us government doesnt recognize it boo hooo all cryptods are a scam LOL", I just think that bitcoin is outclassed by technologically better coins.
I agree, Bitcoin will survive.
But it's not going to hold its price. It's going to cool down, it's going to lose some big investors, and it's going to see some drastic changes to the ways it's being used.
A Bitcoin crash has been predicted by Quinlan & Associates for 2018. This is a 150 page analysis from a major firm and is backed by a lot of real data and professional analysis. This is not an old guy in his basement who doesn't like Bitcoin and decided to post his opinion. This is an analysis by a firm who took the time to crunch the numbers.
Ok I will definetly look into it. Even though it doesn't effect me as much since I don't own much btc
It will be interesting to see if people use BTC like a savings account. It Does not look very likely at the moment.
I don't think it's worth it tbh, when you loose a lot of money just taking out a part of your savings.
I guess BTC should be seen as the cryptogold. You dont walk with a goldbar over the streets to buy your new pair of shoes. So why sending gold. Its just an crypto with high value
why btc as cryptogold? It looks like something like sbd would be better when it actually gets stable.
True and network effect is important. It seems to me Dash should be next king of the hill in spite of advantages of say bitshares, zencash and steem.
Dash definetly has a chance, but it has some sketchy stuff with it's release so I'm not the biggest fan
BCH is SLOWER then bitcoin, pls do math.
How is it slower than btc when it has a bigger blocksize?
The use case for Bitcoin at the moment is store of value rather than medium of exchange. Security comes at a price. I would suggest only moving larger quantities of BTC at moment in order to reduce the impact of the fees. Some of the network congestion is due to Coinbase spamming the network which will hopefully be resolved soon.
I think it's really annoying paying more than a regular bank transfer. Have been moving more into alts now, hope the better coins can get some attention too. With that said, not saying RDD is the one but here's my technical analysis on it.
https://steemit.com/bitcoin/@benkalashnikov/redd-rdd-analysis-123-potential-profit
Thank you for this post.
The high fees are an issue of trying to move smaller amounts but if trying to move large amounts of money they are still very competitive. I agree that for bitcoin to have utility as a currency, fees need to come down but if it is only used as a settlement layer for things like the lightning network etc, fees are acceptable! Plus if a large portion of transaction are taken off the block chain, fees should come down anyway.
When the lighting network will be implemented, a bitcoin will be a million bucks
Despite the high fee, i believe btc has made name for itself, they have a solid brand
Most people would rather go with the efficiency of a good crypto with prospects even with its high fee
#speaking from experience
Brand? lol
Yea brand, dont you know what that is?
This is tech and things change very quickly. Look how Myspace had a brand with huge following then let it go due to well many developmental reasons.
Yeah... I believe you, and i am still very much shocked at how Myspace went down, however, i dont see bitcoin in that light, their high transaction fee shouldn't translate to them losing followers to the retent of collapsing
I think if the pressure mounted on them becomes much, they will definitely reduce the fee, but they still doubtfully remain one of the best as far as crypto is concerned at this very moment
Thanks for your input🙌
Thanks for your post. There's a very long story how Bitcoin development became centralized that most Bitcoin Investors are not aware of. I highly doubt the block size will ever be raised on Bitcoin Core and its very unlikely Bitcoin's Lightening Network will solve scaling problems anytime soon.
Perhaps "brand" is not the term some would use but the meaning is
correct.reasonable. Time will tell. Those who move millions on a weekly basis still have no problem with Bitcoin fees. It's all a matter of use cases. Buy houses and cars with bitcoin. For VPS or coffee, forget it.I don't see a future for bitcoin as a currency. The high fees are artificially created to make the implementation of the lightning network necessary. This network will be much more centralized and eventually create hubs because users have to maintain open channels for transfers and therefore want to maintain as few channels as possible. Not a good solution and definitely not a solution I would ever want to use.
At least we have alternatives like BCH and there are a ton of other coins with superior utility for day-to-day transactions.
no future
I hate to be repetitive as this has been said enough, but bitcoin has a future as a store of value. Buy it and forget about it, like gold. I would say Bitcoin Cash would be a good coin for day to day transactions, but I feel like the community around this coin is a little bit mischievous and is a somewhat hostile player in the cryptocurrency community.
I've found that Bitcoin Cash supporters often spread FUD and try to destabilize bitcoin by warning of it's imminent downfall every time there is a selloff. This sort of taints the whole spirit of Cryto. Both coins can easily co-exist.
Bitcoin more like Donald trump coin!
Ever since the increasingly massive rise of bitcoin people who are beta testers from 2003-2012 are the one's benifitting the most and only the rich can also participate.
people from 2003-2012
consist of traders and miners.
Because of the rise of bitcoin it has created a mountain too steep to be hiked by a average american only ''EXPERIENCED'' and ''POWERFUL''(RICH) people can do it!
Bitcoin has become inhumane.
That's why the market percentage of Bitcoin trading is lowering rapidly.
I predict Ethereum a really good future, because of its' good infrastructure and use even outside of cryptocurrencies.
I saw that it is down to about 32% now, one of the lowest levels I have seen.
Ethereum is also struggling with capacity issues right now as it cannot cope with high transaction numbers. If you want high numbers of transactions, look to EOS, bitshares and Steem!
can you follow me
I can
Etherium is actually doing quite well,
Ethereum (ETH)
$1,415.42 USD (12.97%)
Bitcoin fees are crazy high, EOS is the other one to watch. https://coinmarketcap.com/currencies/ethereum/
Utility is the name of the game in the future of Crypto. Bitcoin is a little like voodoo money where the price is purely based on speculation. Steem and Ethereum have a lot of application utility beyond currency speculation.
Ether is too big to fail at this point, hundreds of tokens are built on its platform. It will be the Alt-coin that dethrones Bitcoin.
I really want bitcoin to succeed, but it has to change :/
It will
It did but the 1MB was kept going on a fork called Bitcoin-Core. The real Bitcoin is Bitcoin Cash.
Bitcoin fees are high. If only there was a platform with no fees....hmmm Steemit anyone :)
RaiBlocks
@jrcornel thanks for sharing. I have a little request I was reading on the antminer S9. I didn't really understand much, can you please do a blog post on it? Thank you.
Bitcoin is not a currency. It is a store of value. And hopefully lightning will come soon enough. Right now, it is the least risky crypto.
Bitcoin will be around for a long time if people want it to be. It doesn't have to be a transaction coin to have value. BTC is easy to buy, easy to store, and easy to sell. And the tech is bulletproof. For that reason, it may well outlast us all. Or, fade away. Who knows!
As far as use for transactions, there are a few others trying to do this. I'm certain STEEM will be one of a few cryptos that serve as transaction coins. Maybe even the dominant one. I expect Amazon and other large companies to also offer cryptocurrency. Facebook too. If there's a way for these guys to make money, they'll do it, and then we benefit from choices.
If the Facebook thing concerns you, here's a nice article that you may appreciate: http://www.nasdaq.com/article/can-facebook-fb-make-cryptocurrency-more-mainstream-cm904405. They're not saying they're going to create a crypto, but...it's Facebook, guys. They want to rule the world.
Lightning network time
This may be the only thing that keeps it alive.
Bitcoin as it is presently constituted is untenable. From its way too high fees, lack of scalability and its huge energy consumption. Having said this, maybe we shouldn't throw the bay out with the bathwater. Lightning network is coming to bitcoin and this could make a huge difference. According to a very in depth article in bitcoin magazine there is also:
increased privacy through Tumblebit and Zerolink, more sidechains, more adoption and to cap it off a Schnorr Signatures Proposal. Any techies out there understand these new developments coming down the line? Do they have the potential to rejuvenate/rescue bitcoin?
https://bitcoinmagazine.com/articles/keep-eye-out-these-bitcoins-tech-trends-2018/
One thing is for sure, before the end of 2018, bitcoin would have lost its number one spot. It is now defeating the purpose of its creation in the first place; One of which is, low transaction fee
BTC will go down eventualy. Fees are just to high. Only thing that is holding it up is reputation as main cryptocurrency. When people realise it's the most non efficiant crypto now, it will go down slowly...until some crypto's marketcap goes over BTC's cap..than it will tank down rapidly.
See you @ $28000..
Maybe, but it will go down eventually...
Stay informed my friends -
Lighting network will solve this problem.
Yes, transaction fees are just too much, I think Litecoin is a better option right now, at least for moving money around.
@jrcornel Once the dust settle everyone will be more than happy with bitcoin cash. Thank you for sharing, have a wonderful day :)
In the long term btc will be, what Gold was for us till now. Maybe it was not meant like this but this is what it became. For me its ok and as you have dash, ltc and some other coins with less transaction fees and processing time its an even better setting for cryptocurrency really change the world.
People are already hoarding Ethereum like crazy... In one exchange its value has peaked at almost tenfold price. If this continues for long, Ethereum will be more valuable than Bitcoin.
Interesting, when Tesla invented AC he licensed his patent to Westinghouse for $1 a kilowatt, just imagine that, he realized that was way to much and waived his fee so that AC could become successful.
Nice good post
Your post informative and valuable for us .Many many thanks dear...
its informative...and i understand this..thanks for sharing..
It is true weekness may be exposed but it will come over it.
Respect
Bitcoin should us the possibilities but another coin with lower transaction fees and easier maneuverability will take over the space.
ha I wished it was "only" $16! More like $40+ the past days/weeks - BTC is dead and the Lightening Network won´t change a bit
bitcoin in my opinion just has the first mover advantage, blockchains like steem have more use cases than bitcoin, all btc has to offer their miners is the fee hence the very exorbitant rates
Think about 16000 for 16 fee. It is almost nothing. So bitcoin sales and buy will boom.
Think about sending $20 with a $16 fee...
Nice idea. Check my post and comment me if you have time to read.
Respect
Current high fee situation is bad, but the developers work around the clock to solve this for Bitcoin: https://steemit.com/bitcoin/@vikisecrets/will-the-lightning-network-solve-bitcoin-s-high-fee-situation
Awesome post! @jrcornel What's your view on the proposed lighting network built on top of bitcoin? it will reduce the fees, the confirmation times , which is why the forks (litecoin, BCH) came about in the first place, will the LN make the forks redundant?
Bitcoin no doubt has the challenges you mention but I do not think these are enough to kill it. That being said, I'm happy that you drew the attention of Steem to the possibility of taking its place in the first ten cryptocurrencies in the world.
Bitcoin is no doubt a #KING but i think its time for Alts like Bitcoin Cash XVG etc with more less transaction fee and faster than #bitcoin. So every one will be moved to #Altcoins but #BTC will still remain the #KING
someday some day I will be like jrcornel
One of the most powerful arguments against Bitcoin is the centralization of power, Steem is highly centralized in who owns it and this will be a detriment to future adoption. Zero fees don't matter if there is little to no money flowing through a system when the majority do not have enough to make meaningful exchanges with, and everyone is holding onto it for speculative purposes.
Bitcoin seems like it will be a crypto for just holding and big payments. That is how I see it.
All that bitcoin has is a first mover advantage, and an advantage in the fact that you need BTC to buy just about any alt, unless you use ETH. There for it will always have some sort of volume unless this changes