With Bitcoin transaction fees and block times shooting up post halving, leading analyst shares why he is not looking for ‘faster and cheaper’ options.
State of the Bitcoin Network
Bitcoin transaction fees is shooting up to $6 per transaction, with the block time up from 10 minutes to 14 mins as well. ‘Bitcoin Halving’ is causing a massive shake-out in the hash-rate resulting in slower blocks and network congestion.
During the last halving, such an argument potentially created greater fear among Bitcoin investors looking for a firm value proposition. Nevertheless, four years down the line, Bitcoin [BTC] has established itself as the uncorrelated scare asset. Mati Greenspan, leading financial and crypto analyst and founder of Quantum Economics, notes in his daily newsletter,
There are at least three dozen cryptos that are cheaper and faster, but none of them have the security, digital scarcity, immutability or liquidity that BTC does. He added, in one of his tweets – XRP does not have a credible claim to digital scarcity.
Moreover, the design of Bitcoin is dynamic, i.e. it allows for accommodation of more or less miners with it’s difficulty adjustments. The total hashrate of Bitcoin is down nearly 16.6% since the 11th May. The first difficulty adjustment post halving is due later today, and the network expects a drop equivalent to March.
Furthermore, while transaction cost and network volume are important metrics for cryptocurrencies, the number of addresses holding Bitcoin [BTC] has been rising exponentially since the last halving. The number of addresses with at least 0.1 BTC is around 3 million.
Bitcoin Dominance and Altcoin Opportunities
Nevertheless, make no mistake, Greenspan adjusts his cryptocurrency portfolio to accommodate altcoins from time to time. After switching to 100% Bitcoin in the aftermath of the COVID-19 crash, post halving, he bet on the liquidity flowing towards altcoins.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com