In an article that appeared in Forbes, the author goes over several reasons why he feels that less popular or newer blockchain projects could one day unseat the duopoly that the top two players hold today. His argument largely boils down to issues of scalability, confirmation times, and transaction fees. Let’s go over these ideas one by one, and see what’s going on here.
Just 12 months ago, transaction fees for Bitcoin were so low that they were almost negligible. Proponents of the cryptocurrency often emphasized the lower transaction fees as one of its main selling points.
Fast forward to today and transaction fees, to ensure a quick delivery, can often exceed $200 during peak periods. Given this, it’s plain to see that something has gone wrong.
While the other big player, Ethereum, has done better in the transaction fee space, their fees have increased alongside Bitcoin, just at a slower rate.
As a result, it is only logical that as fees continue to rise, those looking to move money across cryptocurrency networks will look for alternatives. For example, this year Litecoin and Dash both saw explosive growth. These two currencies are well-known for their low transaction fees. By December of this year, Litecoin did see a jump in transaction fees. However, they are still more economical than Bitcoin.