- Couldn’t move your existing money
- Had wildly unpredictable fees that were high and rising fast
- Allowed buyers to take back payments they’d made after walking out of shops, by simply pressing a button (if you aren’t aware of this “feature” that’s because Bitcoin was only just changed to allow it)
- Is suffering large backlogs and flaky payments
- … which is controlled by China
- … and in which the companies and people building it were in open civil war?
Deadlock on the blocks
NB: You may have read that the limit is 7 payments per second. That’s an old figure from 2011 and Bitcoin transactions got a lot more complex since then, so the true figure is a lot lower.
Some customers contacted Chris earlier today asking why our bitcoin payouts didn’t execute …
The issue is that it’s now officially impossible to depend upon the bitcoin network anymore to know when or if your payment will be transacted, because the congestion is so bad that even minor spikes in volume create dramatic changes in network conditions. To whom is it acceptable that one could wait either 60 minutes or 14 hours, chosen at random?
It’s ludicrous that people are actually writing posts on reddit claiming that there is no crisis. People were criticizing my post yesterday on the grounds that I somehow overstated the seriousness of the situation. Do these people actually use the bitcoin network to send money everyday?
Nobody knows what’s going on
“One of the great things about Bitcoin is its lack of democracy”
Why is Bitcoin Core keeping the limit?
The bandwidth might not be as prohibitive as you think … if the network were to get [as big as VISA], it would take several years, and by then, sending [the equivalent of] 2 HD movies over the Internet would probably not seem like a big deal.
Problems with decentralization as bitcoin grows are not going to diminish either, according to Maxwell: “There’s an inherent tradeoff between scale and decentralization when you talk about transactions on the network.”
The problem, he said, is that as bitcoin transaction volume increases, larger companies will likely be the only ones running bitcoin nodes because of the inherent cost.
The death spiral begins
Massive DDoS attacks on XT users
“I was DDos’d. It was a massive DDoS that took down my entire (rural) ISP. Everyone in five towns lost their internet service for several hours last summer because of these criminals. It definitely discouraged me from hosting nodes.”
The proposed roadmap currently being discussed in the bitcoin community has some good points in that it does have a plan to accommodate more transactions, but it fails to speak plainly to bitcoin users and acknowledge key downsides.
Core block size does not change; there has been zero compromise on that issue.
In an optimal, transparent, open source environment, a BIP would be produced … this has not happened
One of the explicit goals of the Scaling Bitcoin workshops was to funnel the chaotic core block size debate into an orderly decision making process. That did not occur. In hindsight, Scaling Bitcoin stalled a block size decision while transaction fee price and block space pressure continue to increase.