Life in the cryptocurrency space wouldn’t be complete unless its users had the temerity to make high valued cryptocurrency transactions. Temerity means “excessive confidence or boldness,” which is the HODLER’s manifesto and the attitude of most cryptocurrency evangelists. In this article, we will be discussing the intricacies of Bitcoin transactions.
Transactions for Bitcoin are capped at 1 mb per block and will stay that way for the foreseeable future. There is additional capacity to accept more transactions through a soft fork called Segregated Witness. However, Bitcoin has run up to its physical transaction limit on layer one, blockchain, and is looking for its answer to scaling problems in layer 2, which would be through a lightning network. So, how does one know that Bitcoin transactions are exhibiting more temerity?
Below are two charts—the former emphasizing that Bitcoin has reached its limit for the transactions it can handle and the latter emphasizing transaction temerity from its users.
Layer one: blockchain transactions
Bitcoin temerity from its users is at an all-time high and operating at its maximum transaction capacity. Likewise, the price and security for Bitcoin has also been shooting up from the lows of $3,200 in December to the current price of $10,015 (8/15/19 at 11:15am) and the security of the Bitcoin blockchain (hashing power) just passed its all-time high of 80 exahashes.
Now the question to ponder: Is Bitcoin’s increased transaction volume and temerity due to the increase in Bitcoin price and security? Or did the recent rise in Bitcoin’s price and security cause the transaction volume and temerity to increase?
Please, let me know your opinion on this chicken and egg problem in the comments below.