Bitcoin Crashes As Chain-Split Risks Increase

Bitcoin fell below $1,900 today, from around $2,600, as the fast approaching August 1st deadline nears, seemingly considerably increasing uncertainty among traders and investors.

The currency has been experiencing a downtrend for much of June and July, falling from around $3,000 to just above $1,900 at the time of writing, with the downwards price movement seemingly accelerating in the past few days.

The main reason is probably because the currency’s more than two years long debate is to reach a conclusion on August the 1st when bitcoiners decide which way they are to go and how.

The picture is complex and confusing with many clients vying for the bitcoin brand, but they can largely be classified under the small blocks and big blocks umbrella with a third, middle of the way, segwit2x “compromise.”

On the small blocks end, there is Bitcoin Core and UASF which aim to activate segwit, but their relationship to segwit2x is not clear, with some suggestions they may be incompatible and might chain-split, while others suggest they would be in consensus.

We tried to speak to Jeff Garzik, the lead maintainer of the new segwit2x client, to gain some clarity on the relationship between segwit2x and Bitcoin Core, but have received no response at the time of writing.

%d bloggers like this: