Litecoin Has Outperformed Bitcoin in 2017, 8,000% Increase in Price

Litecoin has outperformed bitcoin in 2017, demonstrating a staggering 8,000 percent increase in price. While it still remains as the fifth largest cryptocurrency behind Bitcoin Cash and Ripple, it has solidified itself as a leading digital currency.

Since January 1, the price of Litecoin has surged from $3.63 to $302, as its market cap increased from below $177 million to $16.4 billion. The market valuation of Litecoin is currently larger than that of bitcoin in the beginning of 2017.

Potential Factors Behind Rally

Over the past 12 months, the bitcoin dominance index has decreased from above 80 percent to 56 percent. Several analysts have attributed the decrease in the bitcoin dominance index to the migration of users from bitcoin to alternative cryptocurrencies (altcoins) such as Litecoin and Ethereum that have significantly lower transaction fees than bitcoin.

At the time of reporting, the median transaction fee of Litecoin is around $0.065, while Ethereum’s remain above $0.5. Due the high transaction fees of bitcoin, many users have started to utilize Litecoin to process cheaper and small transactions.

Bitcoin Fees, a bitcoin transaction fee prediction platform developed by Earn.com (formerly 21 Inc) show that the fastest and cheapest transaction fee is 430 satoshis per byte, or 97,180 satoshis for median-size transaction. That is, a recommended fee of around $18.

When the size of the bitcoin mempool is below 50 million bytes or is relatively low, transactions can still be confirmed by miners with lower fees. But, when the size of the bitcoin mempool is larger than a hundred million bytes, without high fees, it is difficult to have transactions confirmed within 24 hours.

More users have begun to utilize Litecoin and other alternatives like Ethereum to process small transactions with cheaper fees, while relying on bitcoin as a robust store of value and safe haven asset.

Still, Litecoin creator and former Coinbase director of engineering Charlie Lee emphasized that it could take at least five years for general consumers to utilize bitcoin and litecoin in the real world.

“I think we’re still maybe five years away before people actually start using bitcoin and litecoin in real world use as a currency,” said Lee.

Where Does Litecoin Price Go in 2018

In consideration of the recent surge in the price of litecoin, Lee stated that he would be satisfied if the litecoin price stays in the $300 region by the end of 2018. That is a rather conservative prediction from Lee, as litecoin has increased by more than 83-fold year-to-date.

“I would be happy if litecoin stays at around $300 by the end of next year. It’s still very surprising how much it has grown this year. I never like to speculate on prices because I’m always wrong. If I tell you it’s going to go up and it doesn’t, you’ll be upset,” said Lee.

If more users continue to utilize litecoin for cheaper transactions and small payments, the user base and market valuation of litecoin will likely increase at a rapid rate throughout 2018.

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Peter Brandt, a highly respected and experienced trader, believes the bitcoin price could surge up to $14,000 in 2018. However, the majority of analysts in the cryptocurrency space see the price of bitcoin surging beyond $40,000.

Bitcoin Heading Towards $18,000

Over the past month, the price of bitcoin has increased from around $7,000 to $12,500, by nearly two-fold. The market valuation has surpassed the $200 billion mark, and is moving closer to $210 billion.

If the price of bitcoin had increased by more than $5,000 within a 30-day period without major events or developments, it would be fair to claim that the short-term surge in value is a bubble and a large price correction is due.

However, the price of bitcoin has increased to $12,500 within a month-long period because of the optimism around the entrance of institutional investors. Billionaire hedge fund investor Mike Novogratz noted that a herd of institutional investors are moving into the bitcoin market, while Brian Armstrong, the CEO at $1.6 billion bitcoin brokerage Coinbase, stated that $10 billion in institutional money is awaiting to be invested in bitcoin.

“Over 100 hedge funds have been created in the past year exclusively to trade digital currency. An even greater number of traditional institutional investors are starting to look at trading digital assets,” wrote Armstrong, emphasizing that a large portion of the traditional finance sector has already made a move into the cryptocurrency market.

Armstrong added, “by some estimates there is $10 billion of institutional money waiting on the sidelines to invest in digital currency today.”

Given the market’s enthusiasm towards the launch of bitcoin futures exchanges by CBOE and CME Group, two of the world’s largest options exchanges, Brandt stated that the price of bitcoin will either achieve $14,000, or experience a minor correction to $9,200 and head to $14,000.

Bitcoin Price Chart Drawn by Peter Brandt, Published by MarketWatch

But, Brandt also noted that the current price movement of bitcoin demonstrates a short-term bubble within the market, as newcomers have been investing in bitcoin for short-term profits, with the intent of selling it in the short-term.

“In my 43 years as a speculator, I have never seen anything like the current bull market in bitcoin. I believe bitcoin is in a bubble, but bubbles can go on for far longer than anyone thinks,” Brandt told MarketWatch.

While it is likely that some regions like South Korea is dealing with some sort of a bubble, the US and Japanese markets, which account for more than 60 percent of global bitcoin trades, have matured, evolved, and grown to a point in which price movements are well backed by the stable market.

Many Analysts See Way Past $18,000

Analysts and investors including Novogratz and John McAfee stated that the price of bitcoin will likely surpass well beyond $18,000 in 2018, as tens of billions in institutional money flow into the market.

“Legendary trader predicts Bitcoin at $14,000 by the end if 2018. Will the old guard ever get a clue? Bitcoin will surpass that by the end of January. The world has split in half. Make sure you are in the half that embraces the new paradigm,” said McAfee.

3.79 million bitcoin is estimated to be lost permanently on the public blockchain. Given that nearly 20% of its supply is unspendable, bitcoin is currently undervalued.

At the time of reporting, the market valuation of bitcoin is at around $196 billion. The price of bitcoin is calculated by dividing the market cap with its circulating supply of 16.72 million.

But, according to a study conducted by bitcoin blockchain-focused digital forensics firm Chainalysis, approximately 3.79 million, or $43.5 billion worth of bitcoin are permanently lost on the public blockchain of bitcoin. Thus, while the official circulating supply of bitcoin is 16.72 million, the actual supply of bitcoin is closer to 13 million.

Given that the real supply of bitcoin considering the bitcoin that are not spendable or accessible on the bitcoin blockchain is 13 million, the price of bitcoin should be in the range of $15,000. As of current, bitcoin is being traded in the $11,500 region across many exchanges.

On whether the market has priced the unspendable coins to provide the market valuation of bitcoin, Chainalysis senior economist Kim Gauer stated:

“That is a very complex question. On the one hand, direct calculations about market cap do not take lost coins into consideration. Considering how highly speculative this field is, those market cap calculations may make it into economic models of the market that impact spending activity. Yet the market has adapted to the actual demand and supply available – just look at exchange behavior. Furthermore, it is well known monetary policy procedure to lower or increase fiat reserves to impact exchange rates. So the answer is yes and no.”

Unlike fiat currencies, bitcoin is a decentralized and a deflationary currency. Bitcoin that is lost on its public blockchain cannot be recovered, as there exists no central authority and entity. Although some may consider the lack of a central entity to be a disadvantage, the decentralized nature of bitcoin ultimately benefits its users by providing financial privacy, freedom, and most importantly, independence.

As seen in the arrest and seizure of assets of Saudi prince Miteb bin Abdullah, financial independence is crucial for any investor as it eliminates the power of governments and authorities to unlawfully and wrongfully confiscate assets and seize wealth.

Investors such as major US-based electronics retailer Overstock CEO Patrick Byrne believe that bitcoin is better than gold and fiat currencies like the US dollar, because users have absolute control over their money and wealth.

“You think that’s a bubble? What do you think that fiat currency you carry around in your purse is?” Byrne told Maria Bartiromo. “This dollar stuff, it’s just some fiat currency based on … the surplus taxing authority of the U.S. Treasury of which I assert there is zero … It’s about time the world switches to real money. Either gold or bitcoin,” said Byrne.

In the long-term, as the supply of bitcoin max out to 21 million, the large number of bitcoins that are out of circulation and unspendable will add value to the current exchange rate of bitcoin.

Less than a month since CEO Jamie Dimon inaccurately described bitcoin as a “fraud,” JPMorgan has changed its stance on the cryptocurrency.

Throughout the past month, analysts and investors in both the cryptocurrency and traditional finance markets have criticized Dimon and JPMorgan for their baseless condemnation on bitcoin. Almost immediately after the company’s CEO called bitcoin a fraud and a bubble, JPMorgan was fined $4 billion for actual fraud in September.

After that, Dimon broke his personal promise to not discuss bitcoin any longer by describing it as a money laundering tool. Ironically, JPMorgan was cracked down by the Swiss financial authority FINMA, for money laundering.

JPMorgan Changes Stance, Suddenly Optimistic in Regards to Bitcoin

Earlier this week, JP Morgan analyst Nikolaos Panigirtzoglou, publicly stated that bitcoin has the potential to become an emerging asset class, given that CBOE and CME, two of the world’s largest options exchanges, will list bitcoin futures by mid-December.

“The prospective launch of bitcoin futures contracts by established exchanges, in particular, has the potential to add legitimacy and thus increase the appeal of the cryptocurrency market to both retail and institutional investors,” said Panigirtzoglou.

He further emphasized that as the acceptance of bitcoin as a store of value continues to increase, the market valuation and price of bitcoin will likely increase proportionally.

Bitcoin Futures Exchanges Will Lead Investors in Finance Market to Bitcoin

This week, several highly respected analysts including Satoshi Citadel Industries (SCI) co-founder Miguel Cuneta explained that bitcoin is only starting to transform the finance sector, and the price of bitcoin, which is currently at around $11,500, will increase exponentially in the upcoming years.

“Over one-third of a trillion dollars. That’s the total amount of cryptocurrencies in the world. $165 Billion belongs to Bitcoin alone, which just shows how dominant network effects can be. Because of Bitcoin technology, the power to create money was granted to every human being on earth and taken away from kings, oligarchs, and governments,” said Cuneta.

In the long-term, more investment banks, hedge funds, and investors will change their stance on bitcoin.

The bitcoin price has officially achieved a new all-time high price at $8,100, surpassing its previous high at $8,050 established earlier this week.

$10 Billion Awaiting to be Invested in Bitcoin

Analysts have attributed the recent surge in the price of bitcoin to the global bitcoin market’s optimism towards the launch of bitcoin futures by CME and CBOE, two of the largest options exchanges in the world, given that hedge funds including the $95 billion firm Man Group have announced their short-term plans of investing in bitcoin upon the launch of CME’s bitcoin futures exchange debut.

Upon the release of Coinbase Custody, a custodial platform which enables large-scale institutional investors to invest a minimum amount of $10 million in bitcoin and other digital currencies, Coinbase CEO Brian Armstrong revealed that there exists at least $10 billion in institutional money, or “money on the sidelines,” waiting to be invested in bitcoin.

“Over 100 hedge funds have been created in the past year exclusively to trade digital currency. An even greater number of traditional institutional investors are starting to look at trading digital assets (including family offices, sovereign wealth funds, traditional hedge funds, and more). By some estimates there is $10B of institutional money waiting on the sidelines to invest in digital currency today,” said Armstrong.

The $10 billion figure represents the minimum hedge fund managers are allowed to invest in bitcoin. In the upcoming months, depending on the success of CME’s bitcoin futures listing and other trading platforms such as LedgerX, the bitcoin derivatives, options, and futures exchange approved by the US Commodities and Futures Trading Commission (CFTC), total institutional money allocated into the bitcoin space in the short-term could increase significantly.

No Uncertainty Ahead

The global cryptocurrency exchange market has stabilized since the past week, as the price of Bitcoin Cash declined to $1,200. Trading volumes of bitcoin and Bitcoin Cash, which remained above $10 billion, have come back to the $1 to $3 billion range.

In consideration of the termination of the SegWit2x hard fork and the lack of community support for the Bitcoin Gold hard fork that was supposed to occur last month, bitcoin has no uncertainty ahead that could lead to a major price correction. As such, the market has demonstrated absolute confidence in the mid-term growth of bitcoin, as shown in the recent price trend of bitcoin.

In the upcoming months, by early 2018, several analysts predict the price of bitcoin to achieve $10,000, based on the CME futures contracts. As tens of billions of dollars flow into the market at a rapid pace, the price of bitcoin will likely surpass the $10,000 mark with ease at this rate.

Some of the world’s largest financial platforms and exchanges that support a variety of investors have started to adopt bitcoin at a rapid pace, providing sufficient liquidity and infrastructure around bitcoin and its market.

Integration of Bitcoin by Major Financial Platforms

Earlier this week, CME, the global financial sector’s leading options exchange, officially announced that its bitcoin futures exchange will be launched by the second week of December. Consequently, $95 billion hedge fund Man Group revealed its short-term plan to include bitcoin in its portfolio of assets.

Square, the $15 billion payments app, which is led by CEO Jack Dorsey, the founder and CEO of Twitter, also revealed that it has integrated bitcoin over the past week, allowing users to purchase and sell bitcoin through its mobile app.

“We’re always listening to our customers and we’ve found that they are interested in using the Cash App to buy Bitcoin. We’re exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash App customers. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we’re excited to learn more here,” said a Square spokesperson.

As of current, Square’s bitcoin feature operates similar to a bitcoin wallet and brokerage, which enables existing users to buy, sell, and store bitcoin. Users cannot make payments with bitcoin through the Square app and its network yet, but full integration of bitcoin is on the roadmap of Square.

In consideration of the Square app’s 3 million active user base, Square will likely be able to penetrate into the bitcoin market at a rapid pace in the upcoming months, competing against existing wallet and brokerage service providers such as Coinbase.

Rapid Adoption of Bitcoin by Merchants

Square’s integration of bitcoin and the company’s enthusiasm towards bitcoin as a decentralized cryptocurrency is particularly optimistic for the long-term growth of bitcoin, given that the adoption of mainstream investors, payments applications, and financial service providers would ultimately lead to the adoption of merchants.

For instance, Square operates a widely utilized Point of Sale (PoS) network which merchants and stores such as restaurants, cafes, and retailers use to receive payments via credit and debit cards, and cash. The integration of bitcoin into the Square PoS network, which the company is not considering at the time of reporting, would allow bitcoin users to use the cryptocurrency at hundreds of thousands of locations.

In Japan, several major PoS network operators including Recruit Lifestyle have already begun the process of rolling out bitcoin across their networks of more than 260,000 merchants.

“Some other stores are also preparing Air Regi bitcoin payments. Also, adding to existing 260,000 stores that already use Air Regi, we will cooperate with Recruit Lifestyle to expand the stores that accept bitcoin,” Kagayaki Kawabata, Coincheck International Business Developer, told Bitcoin.com in an interview.

Currently, around 10,000 merchants in Japan accept bitcoin as a payment method, while only a relatively small portion of retailers and stores in the US accept bitcoin payments. By mid-2018, given the rapid adoption rate of bitcoin by popular payments platforms, hundreds of thousands of merchants would likely accept bitcoin in the mid-term.

Max Keiser, a prominent financial analyst and the host of RT’s Keiser Report, has reaffirmed his short-term bitcoin price target at $8,000.

Hedge Funds Rush Into Bitcoin Following CME’s Bitcoin Futures Listing

Throughout this week, following the official announcement of CME Group, the largest options exchange in the world, to launch a bitcoin futures exchange by the second week of December, major hedge funds including the $95 billion US-based hedge fund Man Group revealed their plans to invest in bitcoin in the short-term.

Large-scale hedge funds with multi-billion dollar valuations and hundreds of billions of dollars worth of assets under management only permit their partners and managers to invest a minimum value of around $300 million to a particular asset. As such, the entrance of hedge funds like Man Group by the end of December 2017 would likely lead to flow of tens of billions of dollars into the bitcoin market in the mid-term.

The market’s optimism surrounding the entrance of institutional and retail investors into the bitcoin sector has led to an increase in the price of bitcoin, which has risen from $5,600 to $7,200 in a matter of days. Given that the majority of hedge funds have not invested in bitcoin yet and their plan to do so has already created upward momentum for bitcoin, it is likely that the price of bitcoin will surge rapidly upon the launch of CME’s bitcoin futures exchange.

In a recent interview with Reuters, billionaire investor and hedge fund legend Mike Novogratz stated:

“The institutionalization of this space is coming. It’s coming pretty quick.”

Several analysts have noted this week the the trading volume of existing bitcoin futures exchange LedgerX, which was approved by the Commodities Futures Trading Commission to operate as a bitcoin derivatives, futures, and options trading platform, has increased substantially since its debut in October.

More to that, Bitfury vice chairman George Kikvadze wrote:

“I visited some 30 Institutional Investors over last few days. Stats for the visit: 12 are investing in Bitcoin 10 are about to invest in Bitcoin 8 still need time.”

Bitcoin Will Become More Liquid

Since January, within 10 months, bitcoin has evolved into a $120 billion market without the capital and volumes from the traditional finance sector and institutional investors. Without hundreds of billions of potential capital that would likely be invested in bitcoin in the upcoming years, the price of bitcoin rose from less than $900 to $7,200.

As institutional and retail investors engage in bitcoin trading and allocate tens of billions of dollars into bitcoin in the mid-term, bitcoin will become more liquid, transforming into a more robust and efficient store of value. Thus, in the mid-term, the interim price target of Novogratz at $10,000 is highly likely, given the increasing interest and demand for bitcoin from the traditional finance sector and large-scale retail traders.

Adam Back, the inventor of HashCash who was cited in the original bitcoin whitepaper released by Satoshi Nakamoto, stated that bitcoin has an edge over Bitcoin Cash in terms of scaling, due to its infrastructure for second-layer payment channels.

“SegWit is a bug fix to enable massive scaling on layer 2 and lightning. Bitcoin Cash intentionally removed the bug fix, think about that carefully. Bitcoin will be fine, and scale further than Bitcoin Cash, because Bitcoin Cash lacks segwit and can’t do Lightning. this is short-term pump. just hold and wait,” said Back.

Importance of Second-Layer Scaling and Limit of Block Size Increase

As NewsBTC previously reported, there exists a certain limit to which block size increase can scale a blockchain network like bitcoin. Bitcoin and security expert Andreas Antonopoulos noted that if the block size of bitcoin gets increased at a rate that is directly proportional to the growth of its user base, inevitably, the blockchain network will become more centralized.

“If my block takes 11 minutes to validate, then i’m off the blockchain, which means fewer people can validate independently, which means the system becomes centralized. With which one of these increases, fewer people can participate in the validation process, fewer people can participate in storing the data, and fewer people can participate in being independent actors. We go from a system that is decentralized to a system that gradually gets more and more centralized,” said Antonopoulos.

Thus, while a block size increase can be viable as a short-term scaling solution, it is not by any indicator a long-term scaling solution.

In bitcoin, due to the lack of a centralized entity or network administrators, node operators and miners verify and confirm transactions independently. But, an aggressive increase in block size could restrict the ability of node operators to verify transactions, centralizing an important aspect of bitcoin in transaction settlement.

How Second-Layer Can Enable Lower Payments

In the long-term, second-layer has to be implemented in order to utilize bitcoin as both a robust store of value and a currency. Businesses must leverage the high level of security of bitcoin, and move small transactions with lower fees to second-layer payment channels like Lightning, which can allow bitcoin to actually scale to the capacity of mainstream financial settlement networks like Visa and Mastercard.

As Ethereum co-founder Vitalik Buterin emphasized, even blockchain networks like Ethereum that were designed to scale better than bitcoin by prioritizing flexibility, are nowhere close to centralized systems such as Visa, and it is not possible to achieve such capacity without altering the consensus protocol.

Back, who has been leading Blockstream, which has contributed to the development of second-layer infrastructure on top of bitcoin, heavily emphasized that while transactions on the Bitcoin Cash network are cheaper at the moment, in the long-term, bitcoin has an edge because it has SegWit that enables the infrastructure necessary for second-layer scaling solutions to operate.

The Bitcoin Cash price has dropped from $2,800 to $1,300 in a matter of hours, as the price of bitcoin rebounded from $5,500 to $6,400.

Many bitcoin experts including former Coinbase executive and Litecoin creator Charlie Lee stated that in the long-term, it is less likely that Bitcoin Cash would be able to compete with bitcoin due to its lack of infrastructure and developer activity.

Lee stated:

“The BCH pump in the past few days is super impressive. I should have kept my BCH. I still don’t think BCH can compete with BTC long term, but markets can stay irrational for a long time. I’m glad there’s a blockchain for big blockers though. Hopefully, resulting in less drama.”

He further emphasized that there exists a clear gap between the development teams of bitcoin and Bitcoin Cash, which could play as a major role in the long-term growth of the two cryptocurrencies.

“Without decentralization, you lose censorship resistance. Censorship resistance is what gives Bitcoin value. Without that, it’s just PayPal 2.0, which is not revolutionary. BCH also has a very weak dev team when compared to Bitcoin Core. It’s like high school team against pros,” Lee added.

Since Bitcoin Cash has fallen from $2,800 to $1,300, the global cryptocurrency exchange market has stabilized to a certain extent, with Ethereum retaining its spot as the second largest cryptocurrency behind bitcoin. While the trading volume is still exceedingly high at over $26 billion, given the major correction of Bitcoin Cash in such a short period, it seems as if the current trend of bitcoin leading the market and Ethereum being the distant second will continue in the mid-term.

With Bitcoin Cash being marketed and used as a currency, mainstream adoption will be key for the long-term growth of Bitcoin Cash in terms of market valuation and user base. Bitcoin Cash will require businesses to adopt it as a payment method, as many leading Japanese conglomerates have done for bitcoin, and large-scale businesses within the cryptocurrency sector to build infrastructure around it.

If SegWit2x supporting businesses have moved on from their plan of increasing the bitcoin block size to 2MB to Bitcoin Cash, in the upcoming months, many existing bitcoin businesses will likely provide support for Bitcoin Cash, which include wallet services, exchanges, and brokerages.

However, if existing bitcoin companies do not move towards adopting and integrating Bitcoin Cash, it will significantly limit the potential of Bitcoin Cash.

Earlier today, prominent bitcoin and security expert Andreas Antonopoulos encouraged the bitcoin community to focus on the development and the growth of bitcoin, rather than discouraging the Bitcoin Cash market and its industry, as there is space for the two cryptocurrencies to co-exist.

In the long run, Bitcoin Cash will serve a different market to bitcoin, while bitcoin continues to evolve into an established robust store of value, with strong infrastructure to process payments with lower fees.

Jameson Lopp, a prominent bitcoin developer and lead engineer at BitGo, revealed that some of the largest customers using bitcoin and blockchain security services of BitGo are saving as much as $100,000 on a monthly basis in transaction fees due to SegWit.

Does SegWit Actually Decrease Transaction Fees?

By reducing the size of bitcoin transactions, SegWit decreases fees by at least 35 percent, as major bitcoin hardware wallet manufacturer Ledger revealed.

“When computing a Segwit signature, the previous transactions do not need to be processed by the device, and each input is only processed once during the signature process, leading up to a 60% time optimization in the signature process. Segwit introduces the concept of block weight which changes the way the transaction size is computed by splitting the signatures in a different area — you can typically save 35% of the fee paid when sending a transaction immediately,” explained the Ledger development team.

Bitcoin users depending on SegWit-enabled platforms such as Ledger, Trezor, and ShapeShift likely have experienced substantial decrease transaction fees and overall optimization of the bitcoin blockchain over the past few weeks. Most recently, ShapeShift became one of the leading bitcoin service providers and exchanges to integrate SegWit, which has had a major impact on the adoption of SegWit as ShapeShift processes around three percent of the bitcoin network’s transactions.

Transaction fees of bitcoin are still high because the adoption of SegWit has been stalled by major bitcoin and cryptocurrency businesses that have not integrated SegWit upon its release. Unlike Ledger and Trezor, some of the most widely utilized bitcoin wallet and trading platforms such as Blockchain and Coinbase have not implemented SegWit.

Blockchain CEO Peter Smith Does Not See Scaling in SegWit

Earlier this week, Peter Smith, the CEO at Blockchain, the most popular bitcoin wallet platform in the bitcoin industry, criticized the “centralization of bitcoin” and expressed his unenthusiastic stance towards SegWit.

Smith stated:

“Trend over last few years in bitcoin is increasing centralization. More coins within fewer entities / systems, fewer mining hw manufactures & pool ops, fewer Core devs with decision making agency. Sadly, likely trend will accelerate partly due to high fees and other system pressures.”

In a response to Alan Silbert’s inquiry on Blockchain’s process of integrating SegWit, Smith added, “Where are these lower fees? BitGo has SegWit. BitGo customers still paying higher fees than pre-SegWit.”

However, the statement of Smith was immediately refuted by BitGo lead engineer Lopp, who emphasized that the company’s customers have been saving $100,000 per month with BitGo’s SegWit-enabled bitcoin transaction processing platform.

Evidently, in the upcoming months, as the bitcoin price increases exponentially and the user base of bitcoin rises at an unprecedented rate, on-chain scaling will be necessary to further decrease bitcoin transaction fees. But, since SegWit was activated as a scaling solution, the industry should at least attempt to see SegWit through by integrating it and optimizing the bitcoin blockchain.