Bitcoin’s growth is a sign of strength and its challenges are being solved

National currencies

Coinify’s take on the current discussion about Bitcoin’s growth and future

Mike Hearn’s recent announcement of his departure from the Bitcoin project means the end of a range of valuable contributions from Mike Hearn to Bitcoin. However, his statements exaggerate the challenges faced by Bitcoin – challenges that Bitcoin is well on its way to overcome.

All growing projects and organisations will face important decisions shaping their long time progression. Hard decisions must be made with every option containing advantages and disadvantages that cannot leave everyone in favour. Someone leaving a project can be a necessary step for a clearer direction.

This decision process takes place in all growing organisations such as software companies, banks, and governments. And it also includes Bitcoin.

The difference with Bitcoin is its inherently open and transparent nature, allowing for public debate of issues that in regular companies and banks would be kept behind closed doors. It may look messy to bystanders, and it may cause some drama. But this openness is one of the biggest advantages to Bitcoin, just like public debate is one of the biggest advantages of democratic governments.

At the centre of Mike Hearn’s arguments is his opinion that resolving Bitcoin scalability beyond the current block size limit is happening too slow. But a large consensus is now forming among the Bitcoin ecosystem including miners for increasing the block size to at least 2mb. Coinify supports this, and we think this is likely to be adopted.

At Coinify we handle payments in 17 different digital currencies, but Bitcoin carries by far the most transactions in our system every day. And it works: Whether it is a customer paying from Japan, Brazil or Germany, Bitcoin continues to settle hundreds of thousands of transactions every day with an efficiency and security unrivaled by any legacy transaction system.

For a more in depth discussion of Mike Hearn’s technical concerns, we recommend this article by Henry Brade.

Do you need more reasons why Bitcoin’s growth is bound to continue in 2016? Have a look at this infographics listing 33 of them.


Image credits: Flickr (fdecomite)

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