Bitcoin, praised to be the future of currency, holds plenty of promises to most critics and financial analysts that it will provide money safely and free from interference from the government. Nonetheless, there is a problem that could prevent the growth and spread of bitcoin across the globe, says Ted Bauman, a financial expert. Ted Bauman points out the fact that bitcoin is unable to process large numbers of transactions fast enough and this could impede the road to success for the praised cryptocurrency.
Ted argues that bitcoin, although it’s accepted in the general population comes with some possible pitfalls. An excellent example that Ted Bauman gives the delay that is experienced when processing bitcoin payment.
Once you make a bitcoin payment, you have to wait for around 20 minutes for processing of the, and at times, it might mean waiting for an hour for it. Compared to other payment processing systems such as Visa, bitcoin transactions can be very slow.
Visa, for example, processes around 20,000 transactions per second during busy days while bitcoin can only handle at least 6-7 transactions per second. That is why it is prevalent for bitcoin transactions to take around 10 minutes to finalise. Sadly, during busier times, bitcoin transactions take approximately 40 minutes or more, and this could scare people away from bitcoin.
But Ted also proposed a solution for bitcoin users. He suggests that users should suggest that bitcoin should work to reduce the amount of data processed in each mining block. Alternatively, bitcoin could also work on increasing the size of the data block to speed up processing speed substantially.
Surprisingly, bitcoin miners are already on the case looking for better technology to reduce the amount of data in each bitcoin block. As a result, most bitcoin miners have integrated the Segwit2x technology for smoother and faster transactions. But leaders of the bitcoin community are still debating whether the integration will be helpful or not because it causes some security concerns.
Ted Bauman’s Work
Ted Bauman is the editor of the Bauman Letter and Alpha Stock Alert. He graduated from the University of Cape Town with a bachelor’s degree in Economics and History.
Ted Bauman’s Twitter