Bitcoin has bounced back from its huge loss after bridging an ideological gap that poses a threat to the number one cryptocurrency.
After its record breaking slump over the last week, Bitcoin re-surges to 2,300 levels as miners began deploying SegWit2x. The Bitcoin price has risen to as high as $2,356, $598 higher than its record low of $1,758 last weekend. Bitcoin’s big jump is only short $644 before it reaches its June 12 record of more than $3,000 again.
Bitcoin’s big jump was attributed to the use of SegWit2x, a new software that is believed to have been the major compromise for the erring Bitcoin faction: the miners who deploy costly computers to verify transactions acting as the backbone of the Blockchain, and the developers or the Core who uphold Bitcoin’s bug-free software.
With Bitcoin’s lack of central figure or authority, reaching an agreement has been difficult. But SegWit2x has become the first major solution to Bitcoin’s ideological gap.
55 percent of blocks mined
With its release over the weekend, SegWit2x has finally secured adoption by large miners like Antpool, BTTC and Bixin. More or less 55 percent of the blocks were seen to be done with SegWit2x as monitored by coin.dance.
If support for SegWit2x reaches 80 percent and maintains that threshold from more than two days, it will definitely keep Bitcoin from splitting.
Thomas Glucksmann, Head of Marketing at Hong Kong-based Bitcoin exchange Gatecoin, says:
“Traders are excited by the prospect of a resolution to the scaling debate, which is why the price has rallied.”
Not off the hook yet
While there has been progress with the use of SegWit2x, some miners warned that the Bitcoin issue wasn’t fully solved yet.
Many core members are still not open to the use of SegWit2x because they say it hasn’t been tested for bugs yet. Also, not all miners support SegWit2x, which they say is a flawed compromise that doesn’t solve the root scaling problem.
Harry Yeh, Managing partner at Digital currency dealer Binary Financial, says:
“This price rally is a bounce, we are very bearish in the near term for a number of reasons.”