> BitCoin can support 7 transactions per second
It doesn't really matter, it's not like they're at all close to that limit. The limit is there to create a market with transaction fees, so it's not just going to be "removed" any time soon.
It doesn't really matter, it's not like they're at all close to that limit. The limit is there to create a market with transaction fees, so it's not just going to be "removed" any time soon.
The limit is actually there to limit the size of a block. It has nothing to do with transaction fees. Click the link I posted: https://en.bitcoin.it/wiki/Scalability#Current_bottlenecks
It used to be 250K and then this year was raised to 1M so it probably will get lifted again. That is the goal of the project, to allow it to scale to at least PayPal numbers (46 transfers per second).
Again, the limit is there to create a market with transaction fees. People jostle for space in the block and a market develops around how much people are willing to pay to get into the next block. It's based on the assumption that miners pick the transactions with the highest fees to include in their blocks, which does happen to a certain degree.