One of the early BTC developers and a true Bitcoin specialist named Jeff Garzik is in the latest cryptocurrency news for revealing his unique take on cryptocurrencies. As Garzik noted, the flagship cryptocurrency faces a lot of challenges today – one of which is the “economic paradox” that threatens to delay the Bitcoin development.
Garzik was a guest in an exclusive interview with a news site. The Bitcoin specialist was featured as one of Satoshi Nakamoto’s earliest collaborators and a founder of the crypto startup Bloq. In the interview, Garzik admits his highly “predictable” answer when it comes to the biggest challenge for Bitcoin – which is “scaling” according to him.
However, Garzik’s statement pinpointed an even bigger problem as the best cryptocurrency news sites noted. The Bitcoin specialist said:
“The pace of innovation of the core of Bitcoin is slow and it’s a real challenge,” he told CCN from the Bloq room at Consensus 2019. “If you onboard a bunch of people on Lightning, stuff like that, the transaction fees go up to the point where [most people] just can’t afford to use bitcoin.”
What’s interesting is the fact that one of the favorite statistics that Garzik used is that an individual that earns $32,000 annually is in the top 1% worldwide. As such, he fears that the Bitcoin transaction fees are a risk for anyone who doesn’t live in the US or EU. As a Bitcoin specialist, he knows this best and stated:
“That’s the top 1% worldwide. And so that tells you that, if you have to pay $10 for a Lightning transaction, that leaves Bitcoin to [people in] the US and EU and that’s it. We just excluded the rest of the world due to transaction fees.”
In that manner, Garzik said that Bitcoin’s core layer must be scaled to reduce fees. The Bitcoin expert also talked about another problem referring to scaling technologies – the one which he labeled the “economic paradox” on Bitcoin.
“It’s an economic problem of funding,” says Garzik, who has served as an advisor to BitFury, Bitpay, Chain.com, Netki, WayPaver Labs, and more. “It’s almost a paradox. If you’re a Zcash, for example, then in every single block, 10% of the new tokens minted go to a dev team fund to create sustainability. And so that’s good for the long-term sustainability picture, but it has a downside. It’s a centralized fund, and it goes to a centralized team or whoever is holding the keys.”
With this statement, Garzik was also featured in the altcoin news, scratching the surface of possibilities for the most dominant cryptocurrency and the ones around it.
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