As the August 1st deadline approaches, uncertainty among traders and investors heightens due to Bitcoin falling from $2,600 to under $1,900 as of today.
Throughout the majority of June and July, the currency has been going downwards, with the starting position at around $3,000 going all the way to $1,900, with the speed of the price moving down faster in the last few days.
The debate about the currency that’s been going on for the last two years is the probable cause of this situation. On August 1st, Bitcoiners are to make a decision about the path they are going to take in the future and how they are going to do it.
With many clients competing for the Bitcoin brand, the situation is complicated and confusing. Simplified, there are three classifications between them: we have the small blocks, the big blocks and the so-called segwit2x “compromise” in the middle.
Bitcoin Core and UASF are a part of small blocks, whose plan is to activate segwit even though their relationship with segwit2x is unclear. While some of the ideas they suggest might appeal to segwit2x, most of them are incompatible and might create chain-splits.
When asked to comment on the situation and possibly clear some of the fog clouding the relationship between segwit2x and Bitcoin Core, Jeff Garzik, in charge of the new segwit2x client, gave no response at the time of writing.
While segwit2x stands for leaving segwit unchanged for the most part, there are suggestions that once activated, the client will only be able to accept segwit blocks, in comparison to Bitcoin Core that would accept both segwit and non-segwit blocks, which could easily head to split.
Although, because it seems unlikely that anyone would produce non-segwit blocks since 90 percent of the miners support segwit2x, the two are likely to stay in consensus.
As far as the bigger blocks go, Bitcoin Unlimited and BitcoinABC stand on the similar ground, with BitcoinABC going a little further when it comes to implementation of the User Activated Hard-Fork that will chain-split despite miners support.
Some of the miners indicated that they will be supporting them, such as ViaBTC and bitcoin.com mining pool. The latter might give its miner to choose whether they want to support the BitcoinABc chain.
Due to all this, it is highly possible that we will have at least two bitcoins on August 1st. Because of this, Bitcoiners are advised against transacting on the day and until the situation becomes clearer.
A trading frenzy is to be expected as the value of the bitcoins is set, once the chain is split and BitcoinABC is listed in at least one exchange.
After a while, what’s probably going to happen is that one coin will gain about 80 percent of the current Bitcoin value, and the minor coin will be able to operate in its own network and going after its own vision.
We will find out who’s going to be a majority and who’s minority at some point next month once Bitcoin finally makes this impactful decision.