[2017-07-18] Bitcoin Jumps After First Solution to Major Ideological Divide

[elite3000]

Bitcoin reversed steep losses as miners began using new software which aims to bridge an ideological gap that has threatened to divide the cryptocurrency.

Bitcoin’s community has been at bitter odds for more than two years about how to solve its scaling problem, which has hampered the cryptocurrency’s growth and allowed rivals like ethereum to steal some of the spotlight.

The new software, known as SegWit2x, is seen as a compromise for the two sides of the debate: miners who act as the backbone of the blockchain, and developers known as Core who uphold bitcoin’s bug-free software. While both sides have incentives to reach a consensus, bitcoin’s lack of central authority has made reaching agreement difficult.

The price of bitcoin rose to as high as $2,302 before trading at $2,282 as of 8:03 a.m. in New York. The digital currency slumped to as low as $1,758 over the weekend on Coinbase’s exchange. Bitcoin, which has more then doubled this year, climbed to just shy of $3,000 on June 12.

SegWit2x was formally released over the weekend and has already gained adoption by large miners Antpool, BTCC and Bixin. About 55 percent of blocks mined in the last 24 hours were done with SegWit2x, according to coin.dance, which monitors blockchain activity.

If support reaches 80 percent and maintains that threshold from more than two days, it will move bitcoin closer to avoiding a split.

“Traders are excited by the prospect of a resolution to the scaling debate, which is why the price has rallied,” said Thomas Glucksmann, head of marketing at Hong Kong-based bitcoin exchange Gatecoin.

Read more about bitcoin’s civil war.

Despite the progress with SegWit2x, some warned that bitcoin isn’t out of the woods yet. Many Core members still vehemently oppose the software, which they say hasn’t been properly vetted for bugs. Also, not all miners support SegWit2x, which they say is a flawed compromise that doesn’t solve the root scaling problem.

“This price rally is a bounce, we are very bearish in the near term for a number of reasons,” said Harry Yeh, managing partner at digital currency dealer Binary Financial, who cites the lack of support from Core developers as one of his biggest worries. “Anytime the price rockets up quickly, it will be followed by a strong correction which we are starting to see. We are definitely headed for some turbulent and volatile times in the short term.”

https://www.bloomberg.com/news/articles/2017-07-18/bitcoin-jumps-as-miners-take-first-step-to-avoid-currency-split

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[TravelMug]

Just another empty article IMHO. All what have been written was already known to us. Although its good to see that the price has bounce back after a very nervous and turbulent days ago. I guess bitcoin ecosystem is heading to a right direction. Also, their is a rampant buying when the price of bitcoin is low then continue when the news about Segwit2x software being implemented by a lot of miners.

[Mpamaegbu]

Just another empty article IMHO. All what have been written was already known to us.

Don't over write the importance of that article. I am not sure everyone here knows the nitty-gritty of the reason for the August 1 apprehension. You may be a tech guy, other members here may not be.

[buwaytress]

Just another empty article IMHO. All what have been written was already known to us. Although its good to see that the price has bounce back after a very nervous and turbulent days ago. I guess bitcoin ecosystem is heading to a right direction. Also, their is a rampant buying when the price of bitcoin is low then continue when the news about Segwit2x software being implemented by a lot of miners.

Perhaps the news might look redundant in this community, but Bloomberg does have a steeply conservative following - at least in the parts of Asia I'm accustomed to. This might be the first time many will have heard of this long-drawn "civil war". I imagine it would make an interesting primary resource for political economists at any rate.

[CryptoBry]

Just another empty article IMHO. All what have been written was already known to us. Although its good to see that the price has bounce back after a very nervous and turbulent days ago. I guess bitcoin ecosystem is heading to a right direction. Also, their is a rampant buying when the price of bitcoin is low then continue when the news about Segwit2x software being implemented by a lot of miners.

Bitcoin is finally back from such a very depressive mode days ago when things are not yet so clear as to whether there can be a split and if there is how messy can it get. Now, the market is getting calm maybe in preparation for what can finally transpire on and after August 1....when things will be smooth and fast.

This should have been done a long time had these people that should have decide not choose to dillydally the whole thing. We could have been soaring into the sky by now. Anyway, this is almost a history for now so let's learn the many lessons this episode can be teaching us.

[iamTom123]

Just another empty article IMHO. All what have been written was already known to us. Although its good to see that the price has bounce back after a very nervous and turbulent days ago. I guess bitcoin ecosystem is heading to a right direction. Also, their is a rampant buying when the price of bitcoin is low then continue when the news about Segwit2x software being implemented by a lot of miners.

Bitcoin is finally back from such a very depressive mode days ago when things are not yet so clear as to whether there can be a split and if there is how messy can it get. Now, the market is getting calm maybe in preparation for what can finally transpire on and after August 1....when things will be smooth and fast.

This should have been done a long time had these people that should have decide not choose to dillydally the whole thing. We could have been soaring into the sky by now. Anyway, this is almost a history for now so let's learn the many lessons this episode can be teaching us.

The market just really reacted wildly to the possibility of a split and the possible problems that can come after the split. Now that it can be over and everybody is already feeling relieved (at least for that split thing) then we are getting normal and the market can be back to the usual volatility which characterize Bitcoin.

Come August 1, I am expecting that it would just a shiny and calm day as the dreaded split will not anymore be a reality for Bitcoin. Hopefully, we can be on track for the possible $3,000 level even before the end of 2017. Next year 2018 can be a banner year for Bitcoin as the scaling debate has already been settled and though there will always be problems big and small the Bitcoin community can now be able to deal with them.

[buwaytress]

Bitcoin is finally back from such a very depressive mode days ago when things are not yet so clear as to whether there can be a split and if there is how messy can it get. Now, the market is getting calm maybe in preparation for what can finally transpire on and after August 1....when things will be smooth and fast.

This should have been done a long time had these people that should have decide not choose to dillydally the whole thing. We could have been soaring into the sky by now. Anyway, this is almost a history for now so let's learn the many lessons this episode can be teaching us.

I think even back in 2014/15, it was recognised that scaling technology would always be behind, that we would always only scale today for yesterday's needs - just like the Internet for most parts of the world, always playing catch up since the 90s. Then again, there are still those in the camp that believe the need was overplayed and the mempool the last few weeks might offer some truth to this view.

[Kakmakr]

It is always funny to see this, " ....bitcoin’s lack of central authority has made reaching agreement difficult. " They somehow think that for something to succeed, it has to have a central authority. Bitcoin is successful without a central authority and they cannot comprehend that. ^smile^

I just hope Core developers and other parties have scrutinized the SegWit2x code, because we do not want a repeat of the BugCoin debacle. ^hmmmmm^   

Being the optimist, I just want all of this to be a thing of the past and for some sort of scaling solution to be in place. We have been kicking the can down the road for long enough now, it is time for this to go to the Moon. ^Weeeeeeeeee^

 

[1Referee]

It is always funny to see this, " ....bitcoin’s lack of central authority has made reaching agreement difficult. " They somehow think that for something to succeed, it has to have a central authority.

The only "advantage" of a central authority being in charge is that decisions are made whenever it thinks they need to be made.

I just hope Core developers and other parties have scrutinized the SegWit2x code, because we do not want a repeat of the BugCoin debacle. ^hmmmmm^ 

I am quite sure they largely have, but there is no way to completely rule out any major bugs with such a tight time frame to operate in. But hey, even if people don't like SW2X for whatever reason, this is at least a proposal the economical majority can agree on. Plus, it will likely prevent a chain split from happening. Instead of certain people not willing to deal with everything related to this proposal, they should be happy that there finally IS an agreement. After all, we want to push Bitcoin to the next level so it can adequately handle the increased demand.