India’s T-Hub Startup Incubator CEO Claims $20 Payment Fees on Bitcoin Transactions Failed BTC
The CEO Of India’s Leading Startup Incubator Claims That Bitcoin’s Failure Was Due to Its $20 Fees
T-Hub’s CEO, Jay Krishnan, claims that the reason for Bitcoin’s failure is its $20 fees. It is strange that the manager of India’s leading startup incubator and also SRI Capital’s advisor could make such a misleading claim. The reality is that over the last nine months, the average Bitcoin transaction fees have remained under $0.2.
Last year in December, Bitcoin’s demand along with interest in most crypto coins like Ripple, Bitcoin Cash, and Ethereum attained all-time highs. The global price hovered around $19,500, while in certain markets like South Korea, it went above $24,000.
Wrong Claims Regarding Scalability
All bitcoin-based systems are distributed networks that work on P2P protocols. Hence, scalability must be achieved through more development and cryptographic engineering.
Over the past year, most blockchain networks from Ethereum to Bitcoin among others have experienced significant improvements in their overall scalability. Ethereum is currently looking to implement Plasma and Sharding while Bitcoin has already integrated Lightning and Segwit to enhance the blockchain’s transaction capacity.
Despite all these positive steps, Jay Krishnan, a CEO who is in charge of managing innovative tech developments in India, concluded that the reason Bitcoin is failing is its incapacity of addressing the unrivaled transaction activities and high demand that occurred last year in December.
He said that the $20 transaction fee was too high and that it was used for ensuring security and convenience in the currency exchange. He added that the high cost was not only inconvenient for buyers but also a sign of bitcoin’s security risk.
However, Ben Horowitz, a highly successful and prominent venture capital investor had a very different stance from Jay Krishnan. Horowitz commented during the recent TechCrunch Disrupt meetup that the crypto world signifies a new birth of the computing system. While crypto appears impractical and inefficient at the onset, its decentralized feature allows the creation of intuitive apps that couldn’t be created before.
He added that new tech platforms are generally worse off at the start as compared to the old way of doing things, but with time the benefits of blockchain will be felt across all industries.
Bitcoin Is A Success
Analysts often dismiss disruptive technologies. For instance, consider how analysts condemned the idea of making smartphones back in 2007. Nevertheless, it is critical to recognize the potential or value that new systems have to offer, like consensus cryptocurrencies like bitcoin.
As more mainstream investment firms like Morgan Stanley and Goldman Sachs acknowledge the potential of Bitcoin, then it is clear that this popular coin has succeeded. While Bitcoin transaction costs might be high for some people, even at $0.1, but it is less costly than the fees needed when using an offshore bank account.