Author: Oliver Egginger 2015-08-21 17:31:27
Published on: 2015-08-21T17:31:27+00:00
In an email conversation, Will Madden expressed his concerns about keeping the block size of Bitcoin at 1 MB and its impact on the network effect. According to him, capping the block size is limiting the number of active users to around 100,000 people transacting twice a day on blockchain. This restriction limits new users from joining and freezes the economic incentive to mine. However, Oliver argues that the number of shareholders is determined by many parameters, mainly the decreasing-supply algorithm. He believes that while it's hard to believe that the blockchain will ever reach mass adoption, freezing Bitcoin's growth for any meaningful length of time may not threaten its position as the leading cryptocurrency. Oliver also thinks that only experienced users penetrate the blockchain directly, and they know what they are doing and deal with problems. When space for transactions starts to become scarce and the fees rise too much, the developers have enough time to make a change, which would not be so controversial if all necessary preparations have already been taken. Oliver's opinion differs from others in the Bitcoin community who are more fatalistic. He believes that fear is a very bad adviser and can make a genius stupid.
Updated on: 2023-06-10T20:27:43.646201+00:00