How Fast Actually Is Crypto?

Is it all about speed?

We are often assured that along with security, a significant benefit of cryptocurrencies over fiat ones is speed. Most articles extolling the virtues of Bitcoin and Ethereum will claim that transactions and transfers happen in real time without any delay. It is one of these currencies' key selling points. For many people, it cancels out the risks of price volatility because it minimizes value changes between money being sent and received. People are also attracted to using crypto as there is no requirement to get involved in currency exchange or middlemen for transactions. The currency moves seamlessly from one crypto wallet to another.    

Not all speeds are equal

At least, that is what we are led to believe. However, some recent research has revealed that not all cryptocurrencies travel at the same speed. The speed at which the crypto moves indicates which currencies are more efficient – the higher the speed, the more efficient the blockchain underneath the coin will be. Kraken has guidelines on estimated times that they would confirm deposits of certain currencies. These vary from almost instantaneous to up to several hours. You might assume that the biggest names would be the fastest, but Bitcoin can take around forty minutes. Tokens like Solano and Cardano provide almost immediate transactions. Transaction speed can be influenced by block size, block time, network traffic, and transaction fees.

Recent statistics published by Statista show that some Ethereum exchanges can take up to 1,440 minutes – that is two days. That was on the Sync Era network, and the fastest Ethereum exchange network was Polygon, where deposits were confirmed in ten minutes. However, customers should be aware that speed is not always guaranteed. 

Why does speed matter

While it is not always essential for transactions to be instantaneous, it is good to have an idea of how long something is going to take. In management speak, it is about making realistic expectations. If you are going to promise the world, make sure that you can deliver it and manage people's expectations. Whether using fiat or cryptocurrencies, there are some activities where transaction speed is the most important thing. One example of this is online gambling. Players do not want to hang around waiting for funds to clear before joining a game at a live-dealer casino or taking a spin on the online slots.

In the song "The Gambler", Kenny Rogers was at pains to point out that a good gambler does not count their winnings at the table. That is almost certainly true when playing online, too, so it is essential to get your hands on your winnings as soon as possible, which is why gamblers often look for the fastest payout at an online casino. After all, whether you have won in dollars or bitcoin, you do not want to be waiting days to collect the jackpot. 

Speed isn't everything

While Bitcoin might not be the fastest currency, it is probably the best-known name, and right now, it is leading a surge in the cryptocurrency markets thanks to renewed investor optimism and rising interest in digital assets. After global economic conditions exerted downward pressure on the market in 2023, 2024 has seen cryptocurrency values bounce back. One key thing driving this has been the US Securities and Exchange Commission's approval of Bitcoin Spot Exchange Traded Funds (EFTs). In addition, there is an upcoming Bitcoin halving event. These developments have seen a substantial upturn in investments and a general feel-good factor about crypto.

Top recommendations

At the moment, the recommendations for the top ten cryptocurrencies to invest in according to their market capitalization or the number of coins in circulation are:

• Bitcoin
• Ethereum
• Tether
• Binance Coin
• Solana
• US Dollar Coin
• Ripple
• Dogecoin
• Toncoin
• Cardano

Top of the list is Bitcoin, whose price has rocketed as it has become more of a generic household name. To buy one bitcoin right now, the price would be almost $69,000; eight years ago, it would have cost $500. That is phenomenal growth – 13,567%, to be precise.

Speed demons

However, if you are looking for speed, there are faster products to choose from than Bitcoin. Also, if you have not yet entered the market, it is now out of the reach of many first-time investors. Solana is the standout crypto for blockchain speed. On April 6th, 2024, Solana processed a record ninety-one million transactions in one day. That is equivalent to 1500 transactions per second, forty-six times faster than Ethereum and five times the speed of Polygon. While that is impressive, there is plenty more capacity in Solana's reserves – in theory, it can process 65,000 transactions per second. 

Will they become mainstream?

There are other benefits to cryptocurrencies, too. Many people consider them to be a replacement for cash. They were designed for peer-to-peer transactions and there is no need for the buyer and seller to exchange any personal details. This means there is no monitoring by the authorities of financial activity, and no one can impose any limits on what you can and cannot do with the currency.

As the currencies become more mainstream, the qualities that make them attractive to users can concern governments and authorities. Some countries are discussing regulation and centralisation which negates the whole attraction of cryptocurrency. Ironically, some form of government approval might be required for them to receive universal acceptance, but this could force early adopters to leave the market and find new blockchain currencies and products. There have been many detractors over the years but for now, crypto fortunes are, once again, in their ascendency.