Bitcoin Economy Is Collapsing
Bitcoins, one of the latest modes of payment around the world seems to be on the verge of collapse, as the digital currency network is unable to cope with the surge in demand.
According to The Verge, the Bitcoin payment system developed in 2008 by the anonymous Satoshi Nakamoto, faced its ultimate challenge as the network reached its maximum capacity. The overload resulted in transactions to be delayed for long duration around the globe, and in some instances the transaction were failed completely.
The average time to confirm a transaction has increased from 10 minutes to 43 minutes, leaving the consumers confuses and irritated.
According to International Business Times, the problem arise because of an upper limit, which restricts the number of transactions the blockchain can process per second, limiting the digital currency growth as a substitute for cash.
Bitcoin experts have been warning for years to make fundamental changes in the core software of the system in order to avoid the current situation. However, the bitcoin developer community itself has remained divided as how to tackle such an issue.
A number of shops around the world have stopped accepting bitcoins, such as the Nottingham microbrewery The Barrel Drop which said, "Unfortunately we are no longer able to accept Bitcoin while there is such a high probability that transactions will not confirm," wrote The Barrel Drop on Reddit.
Copyright Business Recorder, 2016