The Bitcoin blocksize debacle, a leading contributor to the bubble building in the alternative cryptocurrency market, continues full speed ahead, gunning toward August, when a showdown is scheduled to occur regarding the User-Activated Soft Fork, BIP 148, which will invalidate blocks mined by non-segregated-witness and ultimately cause a mighty chain split and a period of confusion. The belief is that in the end, through these efforts, congestion will be reduced in the network and price will continue on its merry way to infinity.
Adam Back is a computer scientist. It’s typically incorrect to accuse him of basing statements on emotion or personal belief, and given that his own invention, Hashcash, was a necessary precursor to Bitcoin, it’s wrong to ham-fistedly take his words out of context the way some outlets have since Back yesterday tweeted the following:
Adam Back @adam3us
i bet they’d pay $100/tx for digital gold, and mid-sized international remittance, I would. still be really good if fees were much lower.
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People took this out of context. Someone on Reddit made a dramatic post, “Is this a joke?”
Of course, it’s not a joke. In international, high-value remittances, high-fees are perfectly acceptable. There are so many reasons for this it doesn’t bear much explaining. It still raises the question of why the cryptocurrency with the most user adoption and biggest network should be dedicated to one of the smaller use cases, in terms of traffic. If this were all Bitcoin were used for, would there even be significant block congestion?
Also read: Hype Watch: What’s Really Going on with Bitcoin and US Visas?
What Back Actually Meant
Back believes that when Segregated Witness, Lightning Network, Rootstock, and other second-layer services are finally integrated into the main Bitcoin network, fees will plummet. He believes that the current situation could go on, because the transaction fees are still far from unacceptable to some parts of the global market, thus: