After a dynamic growth of more than 1000 dollars. US original bitcoin rolled back. On Monday 11/06/17, the rate fell by 3.85%, but still holds above $ 7,000. USA. Investor optimism has been replaced by pessimism – the May agreement corporations are reviewing their decisions on the need for Segwit2x in November. Should you be afraid of a new fork, or will Bitcoin repeat the August situation, read on.
What is Segwit2x in November and what are its consequences
Segwit2x will be held in mid-November and will become the second technical fork after August 1. The appearance of the fork is predictable. The popularity of cryptocurrency has become the reason for the growth of mining volumes and transactions, as a result of which the network has become overloaded. The reduction of miner profits (halving) gradually reduced the effectiveness of the efforts of private miners to a minimum, giving odds to large corporate farms. The growth of commissions, slowing down the speed of transactions – all this led to the need to revise the network protocol (roughly speaking, the rules of forming blocks and the exchange of information).
In May 2017, the cryptocurrency community, which includes the largest corporations as well, decided to activate the Segwit protocol. But opinions are divided. The majority of August 1 supported the changes in the original Bitcoin chain, for which the original BTC ticket was kept, the minority supported the new breakaway cryptocurrency VSN. The appearance of Bitcoin Gold from a technical point of view is not at all considered a fork.
In mid-November, the next update of the protocol will take place, and the cryptocurrency community doubts its expediency for several reasons:
- Bitcon has not been programmed to make changes to the network. How changes will affect is unknown. What consequences will have changes, it is impossible to predict, but failures, loss of information and other technical problems are possible;
- the community does not have a common opinion on the scale of the system. Some major players are interested in a number of decisions, which means a possible monopolization of mining and influence on the course.
Despite similar concerns in July, the PTS did not experience any problems, and the breakaway new cryptocurrency did not justify hopes. At first, over 85% of community votes were in favor of Segwit2x in November. Further opinions were divided:
- The founding brothers of the Chinese stock exchange VTSS are divided: one of them believes that Bitcoin is not an alt and therefore miners cannot make decisions regarding consensus. The second believes that the changes in the rules of consensus have already taken place, and therefore in November Segwit2x will only benefit;
- Coinbase and BitPay supported the most complex chain;
- cryptocurrency exchanges took a waiting position, agreeing to give preference to the most protected chain;
- About 40% of the companies that signed the New York agreement revised their decision regarding fork.
So, Segwit2x in November really represents a bomb with an unpredictable effect. Leading cryptocurrencies are gradually turning into a tool for manipulation, which can lead to the effect of a burst bubble. Segwit2x in November is likely to pass calmly, but problems in a cryptocurrency society are already beginning to mature. And investors should be more careful.