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How many transactions can bitcoin pass per second? What are the long term plans?

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Number of transactions bitcoin

Bitcoin has made a place for itself in the brand new fintech world owing to its speed, efficiency, distributed ledger system, decentralized network, lower and insignificant transaction and processing fees and much more. If you actually run a particular Bitcoin node on not a simple home desktop but a high end and high speed server, the results can be quite astonishing. The number of transactions that are currently pulled through in the real world would in such a scenario, blast through the ceiling. Even a present high speed Bitcoin node can be further scaled up to allow for the processing of way more transactions than what actually takes place in the real world right now.

There are several misconceptions regarding what actually matters when trying to figure out the number of transactions that can be made on the Bitcoin network per second. The hashing algorithms’ relative computational speed does not determine the number of transactions that can be made per second. If a platform is running on such a fast algorithm it simply means that the token miners can manage to make more hashes per second when compared to a simpler hashing algorithm working on exactly the same hardware.

At the end of it, what determines the number of transactions per second is not the hashing algorithm but is directly correlated to the block size of that particular blockchain, transaction size and average block time.

 

Theoretically about 7 (Number of transactions)

Any average transaction requires about 250 to 500 bytes of data. One Bitcoin block in the blockchain can have not more than 1 MB of data. On an Intel Core i7 quad core, the Bitcoin platform can work through about 8000 signature verifications every other second. The number of transaction per block hardly ever cross the 3000 mark. Scaling this down to seconds, this roughly translates to about 5 to 6 transactions per second.

Clearly such a low number does not hold the capacity to handle transactions on a larger scale. This could also be the reason for the faster working of the network right now but because of the ever growing user base of Bitcoin, it has already started facing pressure and beginning to form cracks in its infrastructure. Eventually, if one wishes to make it a mainstream thing, several optimizations need to be made so as to adapt it for a larger audience to be catered and this mostly requires research and development in the scalability issues which if not tackled with, would not allow Bitcoin to be setup on a larger user base. Moreover, more and more unconfirmed transactions are getting logged up on the network and transaction and processing charges are increasing day by day. It is not very difficult to see that the current Bitcoin platform has gotten saturated and reached its utmost peak limit.

 

Future plans

The most vital and urgent plans that the Bitcoin network needs to work upon is its scalability. The network is handling an increasing amount of traffic every passing day since more and more people are getting interested over this. The Bitcoin platform was originally designed to simply support lightweight clients. These clients were expected to process only simple and small blocks of the blockchain. That being said, this infrastructure has worked well over the past 10 years but now with increasing enthusiasm and more developments taking place in the Bitcoin space, scalability is causing issues.

VISA handles about 2000 transactions per second whereas PayPal handles about 10 million transactions per day. Now if Bitcoin aims to be launched as a fiat currency and aim to replace existing currencies like dollars and such, if for suppose a huge nation like the United States was to rely upon Bitcoin money to pay for their food and medicines daily, the current Bitcoin infrastructure won’t be able to withstand the pressure. Quick transactions are vital for quick payments and fast delivery of food and medicines for a nation to survive and for Bitcoin to be deployed in the future, its long term plans should mainly focus on scalability issues. The current restriction on Bitcoin would not allow more than 7 transactions to be passed per second and that is just not what a fiat currency should look like.

#Exchange

Mt Gox: Has the time come when Mt.Gox Creditors will be paid?

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As reported by the Mt Gox trustee, They still have 141,000 BTC and 142,000 BCH and the trustee seems to be taking charge to return the funds to the victims.

The small cryptocurrency community back then was in shock when the biggest bitcoin exchange Mt Gox (at that time) was hacked and around 850,000 BTC were stolen which were worth around $450 million back then and around $3.4 billion according to today’s price. Years have passed since the incident, however, only a few the victims have received their share and most of them are still waiting for their lost funds.

 

Mt Gox to credit victims?

As reported by Nobuaki Kobayashi, the Mt Gox trustee, Mt Gox still has more than 141,000 Bitcoin and 142,000 Bitcoin Cash and the trustee seems to be taking charge to return the following funds to the victims. The victims were super excited to hear this and Twitter seems to be full of tweets claiming that the exchange has finally made its decision of returning the lost funds to the victims.


However, it is worth noting that Mt Gox might have more than $631 million worth of Bitcoin and Bitcoin Cash, the number of funds to be compensated are likely much more than this amount. The other documents on the website claim that the victims shall be sent a notification regarding the approval or disapproval of their claims based upon their type of filing (online or email).

 

Nobuaki Kobayashi said that after a few days, the Rehabilitation Trustee of Mt Gox will be announcing the results of the claims filed by the victims. The result will showcase whether or not their claims have been accepted.

 

Missed the deadline?

If you are one of the victims and you’ve somehow missed submitting your claim, you can still download the claim form from the Mt Gox website. However, if these claims made after the deadline shall be accepted for refunds will be decided by the court.

 

Is there any timeline for the claims?

According to Nobuaki Kobayashi. he will contact the victims soon. So there is no specific timeline as to when the funds will return to the victims. However, it is still great news for the people who have been waiting for over 5 years and they are surely happy about the fact that they will soon be compensated.

 

Cryptocurrency investors are now wondering how will this affect the bitcoin price? What do you think? Tell us in the comments section below.

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#Bitcoin

Cryptocurrency Price Analysis: Great Week for the top 10

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The current week has proved to be quite amazing for the cryptocurrency market as all major coins are holding green. The total cryptocurrency market rose by around $1.5 billion yesterday night with the price of bitcoin reaching $4100.

 

Bitcoin:

BTCUSD Price Chart

BTC/USD Weekly Price Chart

Bitcoin broke the $4000 resistance level on 17th March and has been over this range since then. Bitcoin has turned the previous resistance into strong support now and has moved upwards slowly currently trading around $4120 (according to Bitfinex chart) with around 1% increase in the last 24 hours. If bitcoin is able to maintain its position above $4100 range for long, it might soon move ahead towards the major long term resistances such as $4500 and $4600.

 

Altcoins:

ETHUSD Weekly Chart

ETH/USD Weekly Chart

Ethereum also saw a nice bullish momentum this week after reaching the highest point of $143. Currently, Ethereum is trading nicely around $140 and is experiencing a few dips while trying to move upwards.

Unlike other top 10 coins, Ripple market is experiencing volatility from the last week but the momentum is still quite bullish.

LTCUSD Weekly Chart

LTCUSD Weekly Chart

Litecoin has been following trends and is steadily trading around $60 from the start of the week. Litecoin has increased more than 1.67% in the last 24 hours which makes it the best performing crypto of the day (in comparison with the top 10 cryptos according to market capitalization). LTC is currently trading around $61 (according to Bitfinex chart).

 

The overall cryptocurrency market is in a bullish momentum with sings of further gains. After a long bearish trend, cryptocurrency analysts are now believing that the bull market might be coming soon.

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#Bitcoin Price Analysis

Bitcoin Price to $4500 soon? BTC Price Analysis

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Bitcoin price moved above $4000 yesterday and currently trading around $4100. The buyers are trying again to break through the strong resistance at $4200.

Technical Indicators:

Support Level: $3900

Resistance Levels: $4100, $4200

 

Bitcoin Price Analysis:

On the hourly chart, bitcoin price has been quite bullish since last week when it reached a high point of $4160. However, bitcoin was not able to break through the resistance around this range. Again bitcoin started a bullish momentum on 18th March and reached up to $4120 before but started to correct downwards later. It went below $4000 support level.

Bitcoin price moved above $4000 yesterday and currently trading around $4100. The buyers are trying again to break through the strong resistance that is formed between $4100 and $4200. If the current resistance is broken, there are chances that bitcoin could spike up to $4500 in the short term. The current momentum surely signals a ‘buy’ time. However, if bitcoin is not able to break through this resistance for long, it could result in BTC price falling back below $4000 and even $3900 range and turn bearish.

BTCUSD Hourly Chart

BTCUSD Hourly Chart

Last week, bitcoin tested the $4200 resistance but failed to break through. The sellers pushed the price down to $3832. Later, buyers were able to start a fresh bullish momentum and moved the price above the 12-day exponential moving average which was turned into support. Bitcoin moved above $4000 and the buyers are currently moving ahead to fight the sellers at $4200 resistance level.

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