In general, Bitcoin discussion revolves around the price action the coin is currently going through, and perhaps its potential for the future. In terms of the negative topics surrounding Bitcoin, its scaling issues still remain, and still occupy the minds of many of its believers.
American Institute for Economic Research editorial director Jeffrey Tucker has delved into these two talking points on Bitcoin and posed an interesting question: Where would Bitcoin’s price have been had the project scaled successfully?
Bitcoin certainly has matured as an asset over the years, but as it entered into the mainstream consciousness and was suddenly inundated with users, it faced massive scaling issues of $30+ transaction fees and long wait times for confirmations.
It was at this time that the weaknesses in Bitcoin’s make up as a currency was realized and perhaps also a time where its drive to be a store of value intensified.
“Adoption hasn’t gone far enough and it hasn’t come into consumer use like it should and would have if it had been able to scale. Now we’re seeing what happens when Bitcoin was not properly scaled,” Tucker added
Tucker said Bitcoin was designed to thrive in times like the current financial crisis, and suggested the reason it hasn’t is due to its scaling problem:
“Bitcoin was innovated to become a safe haven during times just like this. So why aren’t we seeing Bitcoin become the safe haven that it was developed to be, and was for a number of years?”
The suggestions by Tucker make for an interesting debate, and it was enough to spark Ethereum co-founder Vitalik Buterin to join in the discussion along with Blockstream. Buterin used this as an opportunity to punt Ethereum 2.0
He suggested Tucker keep an eye on the Ethereum 2.0 launch this year, stating it will have “high scalability but without the centralization that relies solely on increasing block size.”
This, however, did not impress Blockstream’s CEO Adam Back, and CSO Samson Mow, who mocked Buterin’s statements and ETH 2.0.
Analyst Willy Woo suggested that scaling has nothing to do with the price or market cap, pointing to gold as an example:
“Gold is $9T. How many transactions per second does gold do? I mean shipping the underlying between vaults. That’s BTC’s main chain. The swaps we do on ETFs and derivatives is Gold’s layer 2. That s–t scales, so will BTC’s layer 2.”