How memes are causing a long backlog in Bitcoin transactions Robb Report

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The cryptocurrency has had a tough time lately, from the criminal charges of FTX founder Sam Bankman-Frieds to the crash that caused digital currency holders to rush into more stable investments. They now face a new challenge: memes.

Binance, one of the largest crypto exchanges in the world, recently suspended withdrawals after encountering a congestion issue. New York Magazines Kevin T. Dugan explains that the network that processes bitcoin transactions at one point had 400,000 stuck in a queue. Consequently, the fees have increased to make transactions now up to $20, whereas last month it would have cost 87 cents. However, many of these people are just trying to send memes.

While the blockchain primarily deals with data that details transactions, users can now write data into said transactions which may include photos or jokes, which is known as registration. A recent network upgrade has made registration faster and cheaper, but the network is strained under the extra volume. This is because the blockchain is now filled with NFTs and meme coins. Two coins in particular, one with the alt-Right troll meme Pepe the Frog and the other based on SpongeBob SquarePants, are experiencing a huge speculative boom and their increased trading volume is swallowing up the jobs.

There is a growing demand for BRC-20 tokens that include the transfer of digital collectibles on the bitcoin network, Oppenheimer analyst Owen Lau told CNBC. The bitcoin network has gradually supported more different types of tokens like NFTs. This adoption should be a positive sign in the longer term, but it seems to have slowed down the network.

Yet, in the short term, the congestion points to a major problem with the blockchain, which is its processing speed. Right now, it can handle around seven to 10 transactions per second, while MasterCard claims it can process 5,000 per second. To really become an alternative currency, bitcoin really needs to pick up the pace.

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