Could Bitcoin Break the Internet?

Following the news from regulators last Thursday, many crypto enthusiasts were excited about possible growth prospects, but the market continues to show bearish pressure. And although the Securities and Exchange Commission has declared that Bitcoin and Ethereum are not securities, this has had little impact on the bulls' options. At the time of writing, BTC is trading at 6535.00, down 1% from Sunday evening's price.

This morning, the Bank for International Settlements (BIS) released a 24-page report indicating that a lack of trust in cryptocurrency could lead to a slowdown in overall adoption of digital currencies. The report also indicates that the blockchain technology that powers all cryptocurrencies may not have a bright future.

“Even in the most optimistic scenario, processing the retail digital transactions that individual national payment systems have to deal with requires enormous storage capacity.” - was stated in the BIS report, which is often called a central bank for central banks.

"However, the problem extends far beyond storage capacity, and extends to production capacity. Such volumes of information flows could completely stop the Internet, as millions of users exchange files on the order of terabytes in size." 

The BIS has expressed negative views on cryptocurrencies in the past, so analysts are now skeptical of the bank's statements. 

“The analysis the bank staff used to support this hypothesis suggests geometric growth in the use of cryptocurrencies and no growth in infrastructure at all,” said Mati Greenspan, senior market analyst at eToro. “This is the same as saying in the 90s that traffic will not be able to cope with the amount of information that people transmit over the Internet.”