Uncovering the segwit2x Bitcoin Fork – Should you be worried for your Alts?
The Ethereum fork took place earlier this month on 16th October 2017. And the Bitcoin Fork for Bitcoin Gold will take place on 25th this month. Given all of this, November is speculated to be the best month for cryptocurrency, Bitcoin, because there’s another fork around the corner – Segwit2x.
Let’s start our discussion with the fork that’s already happened – the Ethereum Metropolis Hard Fork.
Here’s the price chart for ether for the month of October
See that sudden spike in the chart?
That’s around 13th October. A day after the announcement of the Byzantium Hard Fork was made.
Given this, it can be deduced that the sudden price surge was due to the hard fork. However, around 18th of October, as can be seen from the chart, price started becoming more and more steady.
This is precisely what might happen with Bitcoin.
The Bitcoin Fork will happen on 25th October 2017. The new cryptocurrency born as a result will be called Bitcoin Gold (BTG). Everybody who was having some bitcoin in their wallet will be having an equal number of BTG in their Bitcoin Gold Wallet.
Because of the upcoming Bitcoin fork people are holding their Bitcoins rather than spending them. Trading has come down. This has caused a rise in its price.
When you look at the altcoin market, we observe a peculiar thing. It has been the trend that whenever Bitcoin’s price surges, the altcoin market goes down. This is precisely what happened during the August 2017 Bitcoin Cash hard fork.
Now once the Bitcoin fork has been done, people will be having some “free” BTG in their Bitcoin Gold wallet. They will want to sell their Bitcoin Gold and this will cause a dip in the price of Bitcoin Gold.
As trading of Bitcoin will also resume at this point of time, Bitcoin will also see a dip in it’s price.
With the passage of time, people will start investing in altcoins again. Trading will increase exponentially and furthermore since the price of Bitcoin will have dropped a little by this time, people will again start buying Bitcoins. This might cause the price of Bitcoin to cross $6500 by November 2017.
Another major event happening in November 2017 (18th November 2017) is the activation of SegWit2x (New York Agreement).
When last Bitcoin fork happened, with birth of Bitcoin cash, 93% miners supported for Segwit activation protocol (BIP91). Now, in order to activate the Segwit2x completely, there will be a hard fork in the chain which will update some features of the Bitcoin Blockchain. Now, if some people from that 93% don’t support the hard fork, then that will result into a new cryptocurrency B2x coin.
If some of the Bitcoin miners does not agree with the hard fork, It might result into another fork and there will be a new coin B2X coin(Segwit2x coin). And it seems on the various media channels, that the fork is likely to happen.
Under SegWit2x, block size will be increased from the existing 1MB to 2MB. The agreement will be activated only from block height 494784 onward.
As was the case with the Bitcoin Fork, a person having some Bitcoins in their Bitcoin wallet will have an equal number of B2X (SegWit2x) coins.
However claiming them will not be so easy because of the possibility of replay attacks.
For the uninitiated, a replay attack occurs when a transaction done on one blockchain can be replayed on another blockchain.
Say for example, Mr A sent some Bitcoins to Mr. B. And Mr A also has a Segwit2x wallet. Now since the private key for both the accounts is the same, this means that if somebody is replaying the A→B transaction on Mr A’s Segwit2x wallet, an equal number of Segwit2x coins will also be deducted from Mr A’s Segwit2x wallet resulting in money loss.
Segwit2x doesn’t have an in built replay protection. One must opt-in and apply for it (Opt-In replay protection).
We believe that the segwit2x hard fork will cause the Bitcoin’s price to rise even more. How, you ask?
Once the segwit2x fork is done, transaction fees will also reduce. There will be more transactions and thus Bitcoin’s price will increase even more.
B2X coin(segwit2x coin) has been already listed on one of the top exchange hitBTC for trading.
With so much happening in the month of November itself, it can be said that at the end of November or after mid November, altcoin market will have a good time. Because all the things in market will be settled down and then people will start trading, and that will be done on a huge scale.
Then again, that’s what we think. Stay tuned for more updates.