A recent dramatic departure by a Bitcoin core developer Mike Hearn, was emphasized with his declaration that Bitcoin is a ‘failed’ experiment.
However, the term ‘failed’ is an odd way to classify the current state of Bitcoin.
A quick look at the numbers state otherwise.
On January 17, 2016, the equivalent of US$69,422,433 was moved on the bitcoin network. The fees paid to move these transactions was $13,154 or 0.019% of the value transacted. This of course does not consider the cost of validating the transactions, or subsidy paid to the miners in the form of new bitcoin inflation.
In fact, it’s the success of Bitcoin that is causing the problem. We now have so many transactions being processed that it’s causing a bottleneck. This bottleneck is due to Bitcoin having a scaling issue.
Scaling is a problem all startups face, and Bitcoin is still a startup. Unfortunately, fixing this problem is not simple- there are several proposals being discussed and tested.
If you wish to learn more about the various proposals please visit:
Bitcoin is now a billion dollar experiment, and it’s foolish to rush out a solution without extensive testing.