The 1 Factor Making Bitcoin More Like Gold Than Cash
People often assume that Bitcoin (CRYPTO: BTC) is digital cash -- but this is only true on the surface. Bitcoin was invented to serve that purpose, but network congestion and exorbitant transaction fees have stood in its way. Today, Bitcoin has entirely different aims from when it first launched -- and investors who fail to understand that difference might regret it.
Cryptocurrency fans like to argue that the technology will one day "bank the unbanked." Given that the majority of the world subsists on minuscule wages, any version of global digital cash would have to be cheap to use. But Bitcoin has continually seen its transaction fees climb since its invention because of one key factor built into its design.
The blockchain is literally just that -- a chain of blocks. Each one contains all the transactions that people make on a daily basis. The number of transactions that can be fit into a block at any one time depends upon the block size.
Source Fool.com
