Congestion Spurs Conversations about a Bitcoin Fork
As of December 23, 2023, a noteworthy backlog of 291,660 unconfirmed transactions magnifies the hurdles confronting the existing network. This represents a considerable decrease from the peak on December 16, 2023, when the rate skyrocketed to 674 sat/vB, resulting in a $40 cost per transfer.
The dialogue surrounding a potential Bitcoin fork has found a prominent platform on social media, particularly on X, where influential figures such as software developer Jimmy Song contribute to the ongoing discussions. Adam Simecka, a vocal advocate in this space, goes so far as to classify Ordinal inscriptions as a “scam” and predicts that this trend may result in a hard fork—a new iteration of Bitcoin—that could ultimately fail.
This emerges as a response to Udi Wertheimer’s mention of “BIP-1559,” further illustrating the varied opinions and perspectives permeating the cryptocurrency ecosystem. Tyler Whittle, a sorcerer at Taproot Wizards, adds a fresh dimension to the conversation by discussing the risks Bitcoin faces due to its resistance to adapt and change. Drawing parallels with the downfall of once-dominant companies like Blackberry, Kodak, and Nokia, Whittle emphasizes the necessity for the Bitcoin community to break away from a stagnant mindset.
In his viewpoint, a shift from the prevailing “biblical Bitcoin culture” to a more dynamic and adaptable approach is imperative. Bitcoin Cash has already increased its block size to 32 megabytes (MB), while Bitcoin, incorporating Segregated Witness and Taproot, achieved a 4 MB block size in the current year. However, the potential for further expansion remains limited, and reaching a consensus on increasing the block size appears increasingly unlikely.
The discussions surrounding Ordinal inscriptions, block size limitations, and rising transaction fees underscore a growing divide within the cryptocurrency community. With ongoing debates and divergent opinions surrounding these issues, the possibility of a significant Bitcoin fork in 2024 cannot be dismissed.