If you are like me, involved in cryptocurrency for one reason or another, beware of the Segwit2x hard fork taking place on December 28th evening (GMT+1). If you were passing by, you might want to just see how turbulent crypto-sphere is at the moment.
The fork to Segwit2x implies that after a block 501451 bitcoin blockchain will split into two, this way producing an additional Segwit2x blockchain. The original Bitcoin blockchain remains intact, albeit might be susceptible to a price correction (see below).
The intention behind Segwit2x fork is to fix currently high on-chain transaction fees (€15 per transaction), by bumping block size from 1mb to 4mb, while, unlike Bitcoin Cash, still adhering to the roadmap by bitcoin core community.
What’s interesting, every owner of original bitcoin can get their hands on a newly created coin.
The criticism is that if the community takes the direction of off-chain scaling solutions like lightning and atomic swaps the block size increase might prove to be irrelevant and only adds to confusion with all the forks. This bags questions about the intetions behind the fork?
As bitcoin core developers claim, it’s a doubtful decision that may produce another “in-between scaling solution” that some of the minors and community members see as a plausible fix for delayed transaction time and high fees. Tha later is a known issue, caused by blockchain inability to process a high number of transactions at a short period of time, but higher block size may only temporarily resolve the issue in the face of the grander bitcoin adoption.
Solutions to scaling
Cryptocurrency community market caps growing as fast as tulip market did, yet crypto advocates argue that real-world applicability and ideological strength should help the blockchain to find it’s mass appeal.
Ironically, Satoshi’s Bitcoin hasn’t quite figured high-frequence-transaction part of blockchain technology. Therefore, albeit it’s decentralization and security, modern cryptocurrencies fall short when it comes buying your next falt white with a bitcoin, for it’s low speed and high fees, or accepting a business transaction in bitcoin, for it’s volatility.
There hasn’t been a day in late 2017 without the discussion about the sustainability of the cryptocurrency adaptation growth. And while it doesn’t seem like we are going to see something measurable until it’s tested and well-received by the core community, the conversation has been maturing to suggest that we can expect a gradual adaptation of either further on-chain scaling options via block-size increases and network speed, or reliance on off-chain solutions powered by Segwit and Lightning Network that is called to offload a portion of transactions to a centralised NOD.
Bitcoin Cash – BCH
The developers are firm believers of an on-chain scaling and see Lightning Network as a complete deviation from the original conceptthat would only lead to more centralization, loss of privacy, entry by financial establishments/banks.
At the end of 2017, Bitcoin Cash was offering low commissions and much quicker confirmation times. It has to be noticed, that several other well-established alt coins offer similar specs, as well as, in some cases, superior features and roadmaps.
Before the fork
BCH Lost around 35% of it’s value over the Christmass Market correction. Since both, rapid price increase and decrease have been rumored to be contributed to Korean miners and the community pumping BTC into BCH, and overall crypto-sphere it is tricky to rely on technical analysis.
After the fork
Continues it’s relevance as long as the majority of minors and developers stand behind their ideology. Any issue related to the adoption of Lightning Network and other off-chain solutions for bitcoin and other altcoins could lead to higher interest to a more practical payment solution, which BCH is actually is at the time of the Segwit2x December fork.
Bitcoin Segwit2x – B2X
The motives behind the fork are laid down as the ones called to both improve the on-chain reliability, as well as support recent developments in off-chain. Some of the feedback in bitcoin core community, as well as bitcoin cash ethusiast, believe that such behavior is a further confirmation of the crisis of leadership in Bitcoin community.
B2X Before the fork
B2X futures has been spotted at the price of $600, however, the market will decide upon the relevant at the time for the project.
We suggest to obtain the coin if you already hold bitcoin on your wallet or request your exchange to comment on the B2X situation – ideally you should be able to claim b2x amount equal to your bitcoin original holding, plus an equal amount of original satushi coins.
To get B2X out of your BTC holdings via a personal wallet,
- make sure to get a segwit2x compatible wallet
- transfer all of your bitcoins to the new wallet (now all your original bitcoins are safe there)
- create another segwit2x wallet
- sweep your original wallet with a seed phrase or wallet file
- at this point, your third wallet should get B2X from the original wallet (which now is empty)
Bitcoin Core SegWit – BTC
The community keeps working on an off-chain solution while trying to increase the adoption of SegWit technology, that was made in August to make blockchain more efficient.
BTC before the Fork
The price has been going through a major correction, cutting overall slump of 39% to 19% and back to 26% around the $13,000 price point.
The drop and a rather vicious correction have been met with strong highlights by mainstream media and economics publication. The crypto community, however, seems reluctant to such drawdowns and finds a recent media coverage as moving a key vehicle for an adoption and a more thoughtful approach to researching the subject and obstacles fro cryptocurrency adoption.
BTC in 2018
The rapid growth from 2017 should not keep people over-excited about bitcoin, but the technical aspects of the trend continuation are there. Of course, somebody has yet to figure out the actual worth of the yet to be proven paradigm-shifting phenomena.
If you want to hold bitcoin, make sure to protect your losses in case of a severe market correction, while keeping free funds to buy at dips. Try to be patient and do your research before recklessly selling/buying.
If you think the thing is doomed,😏 open another other asset-related position. After the last dip in the Gold market, you don’t need to go far.
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