Bitcoin's transaction speed and scalability issues significantly impact network usage. Its blockchain processes only 7 transactions per second (TPS), far below Visa's 24,000 TPS, causing delays during peak demand. The 1MB block size limit restricts transaction throughput, leading to congestion, higher fees, and slower confirmations. As usage grows, unconfirmed transactions pile up in the mempool, discouraging users and driving them to faster alternatives like Ethereum or layer-2 solutions (e.g., Lightning Network). Scalability challenges also limit Bitcoin's adoption for microtransactions or everyday use, confining it to a store-of-value role. However, upgrades like SegWit and Taproot aim to improve efficiency. Still, without major protocol changes, rising network usage exacerbates these bottlenecks, potentially stunting Bitcoin's growth as a global payment system while pushing innovation toward off-chain solutions. 0 reply
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