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RE: Cryptweets - Bitcoin Cash or Crash (@Bitcoin)

in #bitcoin7 years ago (edited)

To get to Visa capacity a Bcash block should be about 8 GB(!), this makes it only for a few rich companies possible to run a full node. By attacking these few nodes you can take the entire network down or by compromising them you can forse your own rules or steel coins. Every time the blocks get bigger it will be a bigger hurdle for normal people to run a full node and only some businesses will do. Is this the reason that most business people want bigger blocks?

I agree that 8 GB blocks are problematic, and I think 2nd layer solutions like lightning have their place in the ecosystem.

That said, there are no valid arguments whatsoever against a 2 MB block size limit, and the reason why businesses would like a block size increase (like in SegWit2X) should be fairly obvious, Bitcoin simply cannot be used by their customers without a block size increase.

In a sense, it's the bigger businesses that have most to earn on keeping the block size small; the bigger companies in the sphere can save fees on batching up lots of payments in a single bitcoin transaction, the bigger companies can lure in customers through "free off-chain internal transactions". I'd even go as far as to say that today it's totally madness to keep small amounts of bitcoins in a "real" bitcoin wallet, due to the transaction fees and unreliability one needs a third party to handle transactions. The block size limit is a hard capacity limit, so there are no room for growth, except in the "custodian" market, with people having bitcoin balances on the exchanges.

The biggest problem is that Bitcoin is losing dominance - it's down to 1/3 now according to coinmarketcap, only once before have it dipped below 50%. The exchanges are earning some money on this, as the altcoin trading volume is growing by every day, but crypto currency as such is losing a lot on not having a solid leader anymore.

In reality we have uncontrolled inflation in the crypto currency space now as the value is spread more and more thinly over more and more alt-coins.

All that just because of some people actively and constantly vetoing any motion of increasing the capacity limit all since 2015.

I'm not at all sure that Bitcoin Cash is the right solution ... but it's better than Bitcoin, by far. Bitcoin Cash as it is today scales much better than, say, Ethereum, partly due to all the work that has been put into optimizations and scalability the last two years.