Anyone want to help me understand the scaling issues with BTC and eth? All this hard fork talk has me confused.
Why does BTC network need to be scaled ?
Currently BTC takes more then 10 min to transfer which what it was designed to do initially. The transaction time increase is due to more & more people using BTC for investment, for trading or just general buying things. If BTC is to become more popular & be expected by big e-commerce retailers, transaction times need to be faster the current 30 min to hours.
Also, what started as a way to trade among peers & buy stuff anonymously, is now trying to widen the network to suit retail application.
So what is the issue with scaling debate ?
Well, being a decentralised program means that 97% of the network need to agree on how the scaling should be done. Currently, the two sides who are at disagreement make up over 90% of the network, the consensus is the rest 10% will just follow the majority vote.
Bitcoin core developers which is North American and run 82% of the network, in simple, want to use add-ons or side-chains solution called SigWit to make the overall network run faster, better & safer then current.
Bitcoin unlimited developers which is China based has the second biggest power to run the BTC network, 12.5% total, in simple, wants to change the core code of the BTC network. Pretty much replacing with a new set of rules, codes ect.
share.png
Here is chart showing % of companies that run the BTC network.
https://coin.dance/nodes#allNodesThe most likely out come if they don't agree ?
Well, this is IMO, the price will of BTC will eventually fall. This will be be due to people not liking the long times needed per transaction and most likely go use some other coin. If we look at some of the coins used in black market e-commerce sites like Alphabay, i would say ETH & XMR could see the most steady price action. But from my investment point of view, if BTC starts going down, most coins will follow.
The other scenario is that they both go there separate way's and Hard-Fork.
Hard-fork would essentially crate 2 bitcoins, the original BTC will be in the hands of Bitcoin Core team & Bitcoin Unlimited will create so other name for there BTC coin version.
This scenario will create panic for all users of the BTC network especially investors who will most likely ( or have already started ) dump BTC and even other coins till things look good again. I would also think if that plays out, the smaller investors will panic leaving a blood bath behind.
I have noticed LTE price gaining but still unsure if it's a pump or people hedging bet's.
I'm not at all an expect on trading or Crypto's so please DYOR
