A renowned crypto analyst and researcher Willy Woo has ascertained what several others within the community have unnoted in the case with Bitcoin [BTC] network congestion. Whereas this year’s market worsening has shaked off around 70% of Bitcoin [BTC] price, the Bitcoin network is quietly gaining scale. It’s a symptom of what several blockchain pioneers are touting throughout the market draught, that is for developers to stay their heads down operating while not being distracted by the noise that’s encompassing cryptocurrency costs.
Congestion on the Bitcoin network has reached around 95% since the last week, however if you were transacting in Bitcoin [BTC], you wouldn’t have experienced an hike in transaction fees, that stay at approximately around $0.1 USD — even for transactions as massive as $194 Mln. Woo tweeted a comparison of the 2017 congestion of up to 85% versus 2018 peak congestion of 95%, illustrating that despite the upper congestion todays fees stay “nominal” and below year-ago levels.
Adding further, he explained:
“Meanwhile… throughout the bear market no less… Bitcoin’s blocks peak higher than95% full without anyone noticing, the fees and confirmation times stay nominal. Bitcoin [BTC] of 2018 isn’t Bitcoin of 2017. The protocol is quietly improving.”
The data seems to be supporting the 1MB ceiling, although Woo later updated the chart to mirror “witness blocks within the image.”
According to the Blockchain Council, a 1MB block is approximately equal to 2,000 transactions, although the common range of transactions per block is reportedly below that. The adoption of SegWit, that contains around 4 Mln unit block weight ceiling, has expanded the capability for blocks.
The Bitcoin blockchain has the capability to perform around seven transactions per second (TPS), that may be a much far cry from the tens of thousands of TPS that the Visa network handles. But, as Andreessen Horowitz General Partner Katie Haun recently explained in earlier days: “We are within the dial-up days. Architecture hasn’t been designed nonetheless to scale-up programmable money.”
In just less than 2 years, the Bitcoin block reward is predicted to be halved from 12.5. BTC to 6.25 BTC, that can place a bigger stress on fees generated by the mining method.
Investors can take a look at the nerve of the network once more in Q1 of 2019, that is when crypto traders like Michael Novogratz of Galaxy Digital predict institutional capital can come off off the sidelines.