The fact that the value of BTC reached $30 was more impressive than when it reached $6,000. In case of proper scaling, the increase in price could be tremendous.
For the last 10 years, cryptocurrencies have been performing outstandingly and in 2017 they reached a price of $20,000.
In this article, we will review the analysis of the economist Saifedean Ammous, who is a professor and has the author of “The Bitcoin Standard”. He has monitored the performance of Bitcoin and suggests that although the results are surprising, it could have been even better. The only thing that stopped it is issued with the correct scale.
Would crypto have performed better if it had scaled?
Jeffrey A. Tucker, who is an economics writer, discussed that the realistic expectations for Bitcoin were that it would reach a much higher value than it actually did. The main problem that prevented it from being successful was the fact that it has not been scaled correctly. The technology should have been used by many more merchants and consumers, in his opinion.
The failed scaling of forks like BCH and BSV is a perfect example of that. Even though they had big blocks, they still cost much less than BTC. Tucker also praised BCH as a very useful digital asset. However, not everyone agreed with him. BTC co-founder Yan Pritzker said that Tucker’s opinion was not well-informed, saying that if Bitcoin were to scale as he suggests, features would suffer drastically.
Ten years ago today, 5,050 btc was sold for $5.02 in the first bitcoin market transaction.
Today, they would be worth $42,171,792.50.
A rise of 838,078,685%. https://t.co/yCvJ9TrrSn
— Saifedean Ammus (@saifedean) October 12, 2019
Michael Goldstein also disagrees with the statement and analyzed that the scale was going according to plan when the value of the crypto was $6000.
scale is present
Although many disagreed with Tucker, there is still some truth to it: there are attempts to scale the technology, but it is not happening at the desired speed.
The answer to this problem could be the Lightning Network, which is a second layer scaling solution, migrating transactions from crypto to enable very fast and effective transfers.
Square Crypto has already released the Lightning Development Kit, which allows developers to create “custom” integrations of the network through an API, demo apps, and other technical tools.
I am not impressed by a price of $6K of BTC. I was shocked when the thing came to $30.00. But can you imagine the current price if the thing had scaled correctly?
— Jeffrey A. Tucker (@jeffreyatucker) March 30, 2020
This could make it easier to integrate the Lightning Network and help with the scalability of cryptocurrencies. Another solution is Schnorr signatures: it allows more transactions to fit in a block.