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Reserve Bank of Australia faults Bitcoin over miner’s fee and transaction costs

Arijit Sarkar



Credit: Wikimedia

Although numerous businesses from the countries that are hostile to cryptos, such as India and China, have taken shelter in the Australian jurisdiction, a recent publication from the central bank, Reserve Bank of Australia, evoked mixed feelings among the community owing to its clear intentions of refusing Bitcoin’s entry into the market.

The report was developed based on a one to one comparison between the crypto king Bitcoin [BTC] and in-house Australian dollars. While questioning BTC’s stability and store of value, RBA drew several faults in the ecosystem related to miner’s fee and transaction costs. The financial institution also compared Bitcoin network’s transaction speed with Australia’s new Fast Settlement Service, which had been designed with the capacity to settle around 1,000 transactions per second with greater processing capacity for international cards schemes.

“In December 2017, to incentivise miners to prioritise their transaction, Bitcoin users had to pay, on average, almost US$30 per transaction (and more than US$50 on certain days).”

Moreover, RBA acknowledged the recent spike in (crypto-assets) innovations around filling BTC’s “shortcomings” that also fail to contribute owing to their short lifecycle. It added,

“The short lifecycle may also partly reflect a rapid pace of technological development; with ‘coins’ potentially being discarded as they become ‘old-tech’.”

While the report strongly suggests the explosive growth in the launch of crypto assets is to bridge Bitcoin’s functionality shortcomings, the leaders within the crypto industry constantly warn the crypto enthusiasts of pretentious scams related to ICO offerings.

As a matter of fact, the prominent crypto-figure Andreas Antonopoulos recently tweeted,

“Just FYI: The ICO, IEO, “influencer marketing”, endorsement, “advisor” etc emails and DMs have started flooding in again.

People are offering me (and many others) $25k to $250k for endorsement, review, tweets etc. I say no, many say yes.

SCAMS are coming. Be careful.”

Considering Bitcoin’s [BTC] widespread adoption against the existing inherited dangers, RBA suggested that the regulatory authorities must focus on the intermediaries that provide crypto-related services or conduct fundraisers through crypto-tokens.

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