CryptoQuant CEO Reveals Bitcoin Transaction Processing Speed Has Fallen to 2011 Levels

CryptoQuant CEO Reveals Bitcoin Transaction Processing Speed Has Fallen to 2011 Levels
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Ki Young Ju: Bitcoin’s Transformation into Digital Gold Hinders Its Function as a Daily Payment Method

The CEO of CryptoQuant, Ki Young Ju, has made a striking revelation: the speed of transactions on the Bitcoin network has plummeted to levels last seen in 2011. This significant drop in performance highlights a shift in the primary cryptocurrency's role in the financial ecosystem.

The Digital Gold Dilemma

Ki Young Ju pointed out that Bitcoin, originally envisioned as "electronic peer-to-peer cash" by its creator Satoshi Nakamoto, has failed to achieve this goal. Instead, it has become what many refer to as digital gold. This transformation is reflected in the way Bitcoin is predominantly held by institutions and large investors who use it as a store of value rather than a medium of exchange.

The performance timeline of Bitcoin’s blockchain shows several peaks of high transaction processing speed that have now dwindled. According to Ki Young Ju, the network's operation has reverted to the sluggish speeds of thirteen years ago. He emphasizes that the current state of the Bitcoin network reflects its transition away from daily transactions.

Institutional Hoarding and Reduced Activity

Ki Young Ju further elaborated that Bitcoin’s slow transaction speed is partly due to how it is used by major companies and organizations. These entities often hold substantial amounts of Bitcoin on their balance sheets, conducting transactions infrequently. This behavior underscores the perception of Bitcoin as a stable, long-term asset rather than a fluid currency for daily use.

Layer 2 Solutions: A Potential Game-Changer?

While Ki Young Ju’s analysis focuses on the primary Bitcoin network, he acknowledges the potential for change through Layer 2 (L2) solutions. These solutions, such as the Lightning Network, aim to increase transaction speeds and scalability. However, the widespread adoption and integration of these technologies are still in their early stages.

Echoes from the Industry

Former Coinbase employee Nick Tomaino echoes Ki Young Ju’s sentiments. Tomaino, who has been critical of Bitcoin’s suitability for everyday transactions, recalled that he and his former company recognized this issue as early as 2014. He recounted how Coinbase raised $125 million with the ambition of making Bitcoin a staple for online payments and everyday transactions. Despite forging partnerships with major platforms like Overstock, the vision of Bitcoin as a ubiquitous payment method did not materialize.

Tomaino noted that the advent of Ethereum and the explosion of decentralized applications (dApps) shifted the focus away from Bitcoin. The versatility and programmability of Ethereum made it a more attractive option for transactions and smart contracts, areas where Bitcoin lagged behind.

Technical Hurdles and Future Prospects

Expert Zach Reins, known as ChainLinkGod, also weighed in on the discussion. He highlighted the technical limitations that Bitcoin faces when used as a payment method. According to Reins, Bitcoin lacks the programmability that projects like Ethereum offer, making it less suitable for complex transactions.

Reins pointed out that while the Lightning Network has significant potential to improve transaction speeds, it is not without its challenges. Scalability and liquidity issues are prominent obstacles that need to be addressed before Lightning can fully deliver on its promise.


The insights from industry leaders like Ki Young Ju, Nick Tomaino, and Zach Reins paint a comprehensive picture of Bitcoin’s current status and its challenges. While Bitcoin's transformation into digital gold underscores its value as a long-term investment, its limitations as a medium of exchange highlight the need for innovative solutions. The future of Bitcoin transactions may well depend on the successful implementation and adoption of Layer 2 technologies, which could rejuvenate its role in daily financial activities.

In summary, the discourse around Bitcoin’s transaction speed and usability reflects broader trends in the cryptocurrency market. As Bitcoin continues to solidify its position as a store of value, the search for effective and scalable payment solutions within the blockchain space continues, promising a dynamic and evolving future for digital currencies.