Bitcoin is growing rapidly. More and more people are using Bitcoin. People are investing in Bitcoin. However, Ted Bauman explains that Bitcoin has a big problem. If the way that Bitcoin works does not change, then in a few years, when everyone uses Bitcoin to pay for their transactions and their purchases, problems will arise. For example, a transaction may not go through until 20 minutes after you wanted it to go through. If you have to pay to get into somewhere, this will be a major problem.
The problem is that unlike the credit card companies, the decentralized Bitcoin platform cannot do as many transactions at once. Visa can handle hundreds of thousands of transactions in just a few seconds. However, Bitcoin can only handle a few dozen. This means that if a lot of people are doing transactions with Bitcoin, they will have to wait until the transaction goes through. This is certainly the case when mining happens. According to tedbaumanguru.com, Bitcoin mining is when the decentralized Bitcoin platforms create new Bitcoins. The fact is that the average Bitcoin transaction takes at least a few minutes to process. Last year, it was even worse, as many transactions took almost 3/4 of an hour to process.
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If Bitcoin is to grow into a real currency, then it needs to be able to work just like a currency works, which means that it needs to be able to be used for transactions in real time without many people waiting for it to process. However, Ted Bauman says that there are a number of solutions.
One solution would be to reduce the amount of data in each Bitcoin mining block. However, issues with security may arise. That is why some people have been using the hard fork technology to duplicate the transactions with a new data block. Because it is a different technology, they called it Bitcoin Cash on tumblr.com. In fact, although Bitcoin went down in value last week, Bitcoin Cash has been rising. Bitcoin Cash has its problems too, so it is likely that other forms of hard forking will arise.
Ted Bauman is the editor of The Bauman Letter and Alpha Stock Alert. He has been with Banyan Hill Publishing for many years. Banyan Hill Publishing helps protect assets and manage investments. They started in 1998 as The Sovereign Society, and their focus is on self-reliance and sovereignty in investing.
— Ted Bauman Guru (@Ted_B_Guru) October 31, 2017