Bitcoin is up by 5% to around $4,300.
The much anticipated Segregated Witness (SegWit) was activated last week. However, it didn’t provide an immediate relief to transaction fees. Average Bitcoin transaction fee is approaching $9 which is certainly not sustainable.
SegWit is not expected to help ease off transaction fee at a significant scale for weeks or even months, so Bitcoin users will have to bear with the high transaction cost for a while.
The original vision of Bitcoin was “a peer-to-peer electronic cash system”, meaning that people should be able to use Bitcoin as a form of payment just like cash. Right now, the high transaction fees make this vision not achievable.
Some people argue that the main use case for Bitcoin is store of value, similar to gold. However, the main functions of money are as 1) a medium of exchange, 2) a unit of account, and 3) a store of value. Without the ability to serve as a medium of exchange, Bitcoin’s use cases would narrow down and be at risk of losing its relevance as a currency.
As for Ether, there were not much news going on in the Ethereum ecosystem last week. Ether price went up by 13% to around $330.
Developments in the Cryptocurrency World
Segregated Witness (SegWit) activated for Bitcoin: https://bitcoinmagazine.com/articles/segregated-witness-activates-bitcoin-what-expect/
Estonia could offer ‘estcoins’ to e-residents: https://medium.com/e-residency-blog/estonia-could-offer-estcoins-to-e-residents-a3a5a5d3c894
Canada looking to classify digital currencies as securities: https://cointelegraph.com/news/canada-looking-to-classify-digital-currencies-as-securities
Vietnam is preparing to legally recognize bitcoin: https://www.coindesk.com/vietnam-preparing-legally-recognize-bitcoin-2018/
Ethereum ice age update: https://www.reddit.com/r/ethereum/comments/6w29zk/metropolis_and_other_updates_from_todays_core_dev/