Quick Recap of Bitcoin Split and Future That Awaits
After a long time, cryptocurrency market cap has again touched its peak point, $100 billion mark. It’s been a rollercoaster ride for bitcoin since the solutions for bitcoin scaling issue were announced.
So, let’s recap quickly what were the solutions?
- BIP 148: Bitcoin Improvement Protocol 148’s proposal was to keep it a User Activated Soft Fork which was to be activated on 1st of august. It is activated now, resulting into birth of Bitcoin Cash.
- Segwit2x: Segwit2x or BIP 91’s proposal was that if 80% of miners signal supports BIP91, then it will lock in. It proposes to implement a hard fork. Bitcoin’s main chain is signaling Segwit2x.
Both of the solutions have one major goal to implement the segregated witness in Bitcoin Blockchain but in different ways. While BIP148 introduces a 4MB block size in Bitcoin Blockchain, Segwit2x proposes to scale it up to 2MB by hard fork.
There happened following major events in last month:
16 July 2017 : $1896, Lowest price of Bitcoin after Bitcoin touched $3000 mark on 12 June.
Why? : Uncertainty about effect of BIP91 activation on chain, everybody was introducing new possibilities, Possible bad and good outcomes of activation made users worried resulting into a selling spree of Bitcoin. That caused the market crash.
After BIP91 activation : After 93% of support was gained for BIP91 it was locked and users felt they shouldn’t . Again buying spree started because Bitcoin was at its lowest ever and on 22 July btc price was $2800. (Regretting Why you did not bought Bitcoin that time?) This was the only time people got chance to buy btc in such a low price. Within just 6 days, it grew 1000% (shocked, right!).
Rumours Of Split : Within one or two days when BIP91 was successfully signaled, there were some rumours raising in community about a possible split in chain. Because, 7% of miners had not signaled for BIP91. Suddenly on subreddit r/btc (original one is r/bitcoin for Bitcoin, this subreddit is of Bitcoin cash) people were arguing about why Bitcoin is doomed and Why bitcoin cash is the form of bitcoin that world needs. This split was announced to happen on 1st of august with BIP148 activation.
Split Happened : And on 1st August 2017, Bitcoin network forked as of block 478559. Just after split happened Bitcoin again touched the high mark of $2900.
Now all the issues has been settled. There will not be a price correction for a long period of time because Bitcoin drama has previously caused market cap at it lowest ($60 billion). Now the time is to rise and rise more, for cryptocurrency market. So, if you want to invest in cryptocurrency, do it right now because split is not a daily thing and this won’t come again.
If you are wondering how to start investing in Cryptocurrency we have this guide ready for you.