We’ve reported on the struggle over control of the Bitcoin protocol, and how that uncertainty is causing a pause in the price of Bitcoin. This past week, the battle raged on as the mainstream banking industry continues its attempt to co-opt and take control of Bitcoin.
As a result, the Bitcoin price suffered, briefly dropping to under $400 before recapturing that level.
MIT Technology Review reports:
For more than a year now, people who use or work on the digital currency Bitcoin have been arguing about how to fend off a looming problem that some leaders in the community say could kill the whole system. This week that problem has become very real. Some people and businesses using Bitcoin have found their funds stranded after trying to send them to other users.
The problem is caused by Bitcoin’s design, which is capable of processing at best only seven transactions per second. This week the currency, which is powered by a decentralized network of computers run by people and businesses around the world, hit its capacity limit. A backlog of stranded transactions has built up. (There is debate as to whether this happened naturally, or by a person or group intentionally trying to cause problems for Bitcoin.)
It is quite clear to us that the above problem is the latter, and did NOT happen “naturally.” The global banking industry does not like competition, and now that Bitcoin has emerged as a serious alternative, the global banking oligarchy is doing everything it can to take control of Bitcoin and merge it into mainstream banking.
The jury is still out on whether or not they will be successful.
>> Read the full article at technologyreview.com.