Key Takeaways
- Bitcoin Block size is estimated to grow to 4 MB driven by the inscription process by the end of 2025 per the latest research reports.
- It is also projected that this block size could reach a high of 1 TB by mid-2027 or early 2029 driven by the widespread adoption of the Inscription method.
- Based on the innovations and other aspects, various market analysts predict that the original cryptocurrency could soar to a high of $305K by 2029.
Bitcoin is one of the oldest cryptocurrencies in the market. Since its inception into the market in 2008, the coin has grown exponentially and is currently considered one of the most valuable assets in the world. But, even though it is such a high-and-mighty in the market, there are slight disadvantages, especially in its scalability. However, recent research revealed that this scalability issue will be resolved soon, and that too by 2027.
This article will explore this news in depth. We will also look into the factors that have made this possible, and what it means for the entire crypto market.
Taproot Upgrade & Formation Of Bitcoin Inscriptions
Bitcoin inscriptions are data added to individual satoshis, the smallest unit of the original cryptocurrency. Inscriptions are a mechanism that allows you to add digital assets to the Bitcoin blockchain network and are very similar to NFTs or Non-Fungible Tokens. There are also other cases in which they are used to attach comments or messages along with a transaction. They are also known as Ordinal Inscriptions.
In the beginning, Bitcoin was limited when it comes to scalability and block storage. That is, there was a limit to how much data the users could attach to it. During those times, there was no inscription, or rather, Bitcoin wasn’t capable of supporting such a complex mechanism.
That’s where the Taproot upgrade came in. It paved the way for inscription by removing the limit that was originally placed on the data storage, enabling blocks to hold more data. This upgrade and integration of inscription technology led to many possibilities that have improved Bitcoin’s capabilities including the scalability issue.
Bitcoin Block Could Reach 4 MB
Per the latest reports, there is a high probability that Bitcoin’s average block size could potentially increase. At this point, it is estimated that this block size could reach a high of 4 megabytes (MB). This projection is primarily based on the sources from research conducted by Mempool Research as of 4th February 2025. The current block size of the original crypto comes to around 1.5 MB.
This projection is based on the assumption that inscription, a method used for effectively encoding arbitrary data into a block, will be widely adopted in the coming months. It was all made possible through the above-mentioned 2021 Taproot upgrade of BTC, which resulted in increasing Bitcoin’s block size storage to 2.4 MB in the case of some blocks.
As the block size of the Bitcoin chain will play a huge role in expanding its scalability, it is expected that once the 4 MB size comes into play, Bitcoin’s scalability will increase exponentially. However, the reports from the research also suggest that this growth will likely be slower due to various ranging from returns to pre-inscription dynamics.
Future Growth Potential & Market Impacts
Considering the above facts and various other scenarios, it is estimated that Bitcoin’s blocksize could hit 1 TB by mid-2027 or by early 2029 driven by increased adoption of the inscription method. If this comes to being, the major contender Solana who rivals BTC with a block size of 128 MB will be easily overthrown.
Based on these speculations, various prominent market analysts claim that Bitcoin could soar past its all-time high and reach a potential high of $305K by 2029. This could put its market capitalization at a tremendous high of $6.045 Trillion and could make it rank in the top 5 most valuable assets in the world. For further information and Bitcoin-related news, stay tuned.
