Did the exchanges simply not believe in a Bitcoin (BTC) exceeding $ 20,000 before 2021?
Binance (BNB) and Coinbase do not seem to have anticipated a problem that seemed obvious: server overload due to an explosion in the price of BTC that would be accompanied by a sharp increase in traffic on the exchanges.
Bitcoin explosion causes servers to fart (or crash)
Many users report that the majority of exchanges face difficulties related to a massive increase in their traffic while Bitcoin finally crossed $ 20,000 on December 16, 2020.
Major platforms like Binance and Coinbase have experienced complications resulting from the strong demand that followed the explosion in the price of BTC above 20,000 USD.
Changpeng Zhao said in a tweet on December 16 that Binance was experiencing scalability issues.
According to him, a 5% increase in the price of Bitcoin results in a 30-fold increase in traffic.
CZ also indicated that the processes of Binance worked slower than usual.
However, he assured that these difficulties were temporary and that maintenance teams were installing additional servers to meet the demand.
Coinbase: used to shutdowns
Coinbase also experienced problems due to a Bitcoin reaching new ATH. A statement posted on his blog said the problem had been identified and resolved.
Unlike in Binance, Coinbase is a recurring victim of these situations, with bugs generally referred to as connectivity issues.
In the face of criticism, the CEO of Coinbase, Brian armstrong has made it known on multiple occasions that the exchange is working to resolve these issues.
Coinbase encounters technical difficulties affecting its proper functioning, when the level of activity on the platform increases significantly.
Bitcoin broke the $ 24,000 mark on December 19, 2020. Exchanges have concerns if the most optimistic analysts’ predictions come true: Bitcoin would rise to $ 30,000 before its price undergoes a major correction, the level of exchange activities should then follow this growth rate. But even in the event of a crash, the exchanges should manage the many liquidations. Ethereum (ETH) has ETH2, Bitcoin has the Lightning Network, “enhanced” versions that improve the scalability of the original networks. It is now up to the exchanges to update.
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