American Institute for Economic Research editor Jeffrey Tucker revived the long-running Bitcoin scaling debate with a tweet earlier today.
The economist – who has long been a supporter of Bitcoin (BTC) – suggested that the current price is much lower than it would otherwise have been because the underlying technology was not “properly scaled.”
The Tweet expands on comments made by Tucker on RT earlier this month, during a panel discussion with renowned Bitcoin skeptic Peter Schiff. During the debate, he said that too much time had been wasted on this “ridiculous scale problem” that had ultimately prevented regular adoption:
“Adoption has not gone far enough and it has not been used by consumers as it should and would have been if it could have scaled. Now we see what happens if Bitcoin is not properly scaled.”
Tucker said Bitcoin was designed to thrive in times like the current financial crisis, arguing that the reason this isn’t the case is due to the scaling issue:
“Bitcoin has been innovated to become a safe haven in times like this. So why don’t we see Bitcoin become the safe haven for which it was developed and that it has been for several years? “
The BTC scale problem was one of the most heated debates in cryptocurrency. The base layer network cannot process transactions fast enough to allow for large-scale, general acceptance as a currency. The debate about increasing block size as a solution eventually led to the forks of Bitcoin Cash (BCH) and Bitcoin SV (BSV), while Bitcoin itself used the layer two Lightning network as its scaling solution.
Tucker’s March 31 tweet sparked a debate among prominent members of Crypto Twitter. Ethereum co-founder (ETH), Vitalik Buterin, encouraged the economist to look at the highly anticipated Ethereum 2.0, which will be launched this year, stating that it will “have high scalability, but without the centralization that depends solely on it of increasing the block size “.
This caused a lot of ridicule for the CEO of Bitcoin Development Company Blockstream’s Adam Back and CSO Samson Mow, who wrote ‘Lols’ and posted a ‘cry with laughter’ emoji, respectively.
About chain analyst Willy Woo suggested that scaling has nothing to do with price or market capitalization, citing gold as an example:
“Gold is $ 9 tons. How many transactions per second does gold do? I mean shipping the underlying between vaults. That is the BTC main chain. The swaps we do on ETFs and derivatives is Gold’s layer 2. That is scaling, so also BTC’s layer 2. “
Bitcoin Advisory founder Pierre Rochard said the price would be the same whether scalability is “not the bottleneck for adoption.”
Bitcoin proponent Vijay Boyapati claimed that there was no need to propose a “well-scaled” Bitcoin, because that was Bitcoin Cash: “The price would be $ 200; the price of BCash. Ie the market is giving a huge discount on what you consider to be “good economies of scale” and attaches great value to immutability. “
Investor and author Tuur Demeester said that Tucker’s tweet annoyed him: “Since you’ve been in Bitcoin for so long, you should know better imo – Bitcoin scales fine.”
To which Tucker put up a challenge: “Well, let’s leave Twitter and discuss this as gentlemen.”