Bitcoin soars as miners finally move to solve the digital currency's scaling problem

19.07.2017 / 11:57

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Bitcoin miners are signaling their intent to support a new upgrade for the bitcoin blockchain that may solve the digital currency's long-running scaling issue.

Several of the largest bitcoin miners (who create new bitcoins and support the blockchain), including AntPool, BitClub, Bixin, BTC.com and BitFury, have started showing their support for bitcoin improvement proposal (BIP) 91, by adding a piece of code to each new block of bitcoins they generate.

The proposal needs 80 percent support to be "locked in" to the blockchain permanently. This will bring relief as it prevents the blockchain splitting into two separate chains, which would effectively create two different coins.

Bitcoin has recovered from a roughly 8-week low of $1,863 on Sunday to around $2329 today, according to Coindesk data.

For some time, bitcoin has faced a scaling issue, where the number of transactions that can happen on the blockchain at any one time is limited to 1 megabyte (1MB) every 10 minutes. This creates a backlog of transactions that need to be processed and slows things down.

The bitcoin community has been divided on the best way of solving this, which caused the decrease in the price of the cryptocurrency.

Source: Bloomberg Pro Terminal

Junior Trader Stefan Panteleev

Varchev Traders

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Bitcoin soars as miners finally move to solve the digital currency's scaling problem

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