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The first-ever Bitcoin civil war is about to get ugly and only Satoshi can prevent it!
The global crypto market suffered the worst crash this year as it fell below the US$1 trillion mark. The price of the flagship cryptocurrency, Bitcoin, tumbled down to US$19,000, dragging down all other major altcoins. The price of Ethereum, Solana, Cardano and several other cryptocurrencies still continues to plummet as Bitcoin is still unable to find stability and continues to decline under various macroeconomic factors. The crypto market reached around US$3 trillion for the first time in November last year which was mainly led by Bitcoin as it touched all-time highs of US$68,000. But after the massive crash by the end of 2021, the market lost most of its value.
Besides these adversities, Bitcoin also faced technical issues. Since November, Bitcoin mining difficulty increased exceptionally. Currently, Bitcoin’s dilemma has risen as it faces its first ‘civil war’. The Bitcoin blocksize war between big and small blockers is about to take an ugly turn that will definitely spruce up difficulties for the wider crypto market.
Bitcoin’s first civil war took place between 2015 and 2017 and is referred to as the ‘Blocksize War’ or the ‘Scaling Debate’. Since the inception of Bitcoin, crypto has grown exceptionally popular, but as the blocks filled up, the momentum of the transactions became slower and more expensive. The investors with the bigger blocks were mostly institutional investors and business owners who joined the Bitcoin blockchain network to acquire faster, cheaper transactions and for BTC to be established as a global payment system so that it can compete with Visa and PayPal. On the other hand, the group of small blockers contains developers, engineers, and other investors who believed that Bitcoin might become the new currency that could transform the current economic and financial conditions.
Bitcoin Civil War is About to Worsen Conditions in the Broader Crypto Market
Basically, small-sized blockers chose integrity, resilience, and security. They are currently debating about the fact, if the block size actually became bigger or not, because if it did, then it would be more expensive for users to run nodes and thus incentivize hosting nodes in data centers, which is a one-way street toward centralization, where the network would be controlled by third-parties and centralized organizations like banks. Experts believe this would eventually lead to the death of decentralized currencies.
Meanwhile, Bitcoin players holding large-sized blocks pushed harder for the Bitcoin XT upgrade, which eventually increased the size of the blocks! Now the real dilemma is why would any investor want to increase the Bitcoin block size, even though it might be more expensive to maintain?
Well apparently, Satoshi never publicly specified why he added a block size limit to the Bitcoin protocol. But it is speculated that the creator intended it to be an anti-spam measure to protect the Bitcoin network from being attacked by any scammer from overloading it with artificially large BTC blocks full of fake transactions. Now small-sized block owners ought to be furious over this since it might be overburdening for them to maintain transaction costs amid the growing financial turbulences in the wider crypto market.
Will Satoshi’s intervention clear these doubts?
It is quite likely that Satoshi’s intervention amid present conditions will calm down the winds of the civil war. Satoshi Nakamoto’s intervention in the crypto market will sort out several doubts, especially about the inner functionalities of Bitcoin. BTC’s price was hit when the entire crypto market fell due to various macroeconomic factors. Under current circumstances, Satoshi’s identity revelation or intervention to sort out the doubts pertaining to the Bitcoin blockchain size might actually help the crypto bring back its lost credibility.