The rapid rise of bitcoins during this year has not been short of turmoil and shock. During the last 2 months, we have seen a massive conflict between bitcoin insiders. The people associated with the largest growing bitcoin network now found it hard to control their stakes in the market, as conflict has drastically risen in the past few months. The conflicts won’t just undermine the value of the digital currency, but would also threaten the integrity that bitcoin took so hard to build.
For users who are not updated, the conflict has been a result of a fork in the software for bitcoin. The conflict over the software, known as SegWit2x, can end up creating another version of the currency. If this happens, users could face a conundrum regarding the real bitcoin. Moreover, there could also be a major conflict on who keeps the popular BTC symbol with them. While there is a lot of confusion surrounding this fork, some experts have even predicted that the fork will create a payout for all current bitcoin users.
Understanding the Split
With so much happening in the bitcoin market, we understand how it can be hard to have a grasp on all these happenings. To simplify the dispute leading to this hard fork, we can say that the disagreement between the key stakeholders was over the updates required for managing the software that runs bitcoin. Although there are a lot of technical details involved, the crux of the fight was weather the producers should or should not double the overall size of the bitcoin blocks. The blocks that are automatically added after every 10 minutes, create a record of all bitcoins transactions to form a blockchain ledger.
After this controversy, we can expect that there would be two bitcoin blockchains. One of these blockchains would be of 1 MB, and the other would be of 2 MB. This could create uncertainty, albeit temporary, regarding which bitcoin is the real one.
Although this is not the first fork that bitcoin will experience, (one can still remember the creation of rival cryptocurrency “Bitcoin Cash” during the summers) the general market has not recognized these splits as replacement for the original bitcoin. But, with the sewit2x saga, this could soon change.
Which Version Will Prevail
Now that you know what the saga is all about, you must have questions regarding which out of these 2 versions would actually prevail in the market. If most miners start backing the new version with bigger blocks, it could soon become the de facto version of bitcoin. But, if the market still places more value on the older version with 1 MB blocks, miners would get cold feet and will eventually make a move back to the smaller version for profitability.
Strong exchanges like Coinbase will also have a role to play as king-makers in the conflict that will most likely follow this fork. By deciding which version gets the “BTC” symbol, these exchanges could play an important role in promoting either one of the two bitcoin versions.