Tuesday, October 17th, 2017
Bitcoin Segwit 2x Hemmoraging community support.
As most of you know, 2017 has been the year of Bitcoin. The popular Cryptocurrency has been growing at a rapid rate and has earned investors a multitude of returns. Bitcoin has proven it’s resilience through the past couple months as countries like China shut down BitCoin exchanges and Doomsayers like Jamie Dimon of JP Morgan called into question the legitimacy of the Crypto Currency. Despite the price falling drastically for a few weeks, Bitcoin has now managed to climb its way back to yet another record high.
However, another challenge looms on the horizon. The proposed Bitcoin hard fork, Segwit 2x. This hard fork is slated to occur November 25th, and will double the block size of each Block in the Bitcoin Chain, allowing for twice as many transactions to occur in the same amount of time. Ideally, this will increase the speed and efficiency of user transactions as well as decrease the transaction fees to a minimal level.
It all sounds good and well, but this is where the feel good feelings stop and the problems begin. Up to this point, all bitcoin hard forks have written something called replay protection into their code, which means that the blockchain essentially recognizes each new forked coin as its own separate currency, essentially making it into a high end alt coin.
Should the owner of the newly forked coin wish to spend it, they may do so without fear of the network mixing up their coins and accidentally “replaying” this withdraw across the bitcoin also present In their wallets. If this “replay” were to happen the blockchain would siphon their wallets of equal amounts of both currencies, sending twice the needed payment amount to any malicious agents who enacted this “Replay Attack”. Segwit 2x developers however have refused to insert any replay protection into their code. This means that the blockchain will view both the Orginial Bitcoin and the 2x Bitcoin as the same exact currency. Not only will this confuse the majority of retail investors as to which Bitcoin is the Real Bitcoin, but it will mean that anyone who attempts to move either currency will be vulnerable to a replay attack.
As bitcoin attempts to gain adoption and thus legitimacy with the everyday consumers of the world, this is a dangerous move to make. The everyday person will not know how to protect their Crypto currency wallets from these attacks and could be scared off from jumping into the world of crypto currency all together. SegWit2x is looking to draw people away from Core Bitcoin by forcing them to view their new HardForked coin as the real Bitcoin. But ultimately the New bitcoin will be the one that the majority of miners decide to focus their hashing power upon.
The Bitcoin Community is beginning to rapidly withdraw its support for this new hard fork, demanding that replay protection be written into the code. Mining Conglomerate F2Pool withdrew their support for Segwit2x on Thursday! This is significant because F2Pool currently mines approximately 10% of the worlds bitcoin. Estimates vary, but currently between 15 and 25% of the mining community is adamantly against the segwit2x fork. This number should continue to rise as we get closer to the fork date of November 25th. However if SegWit2x does implement Replay Protection into their code then you can expect them to regain much greater support.
At the end of the day, You need to protect yourself and your Crypto currency. If you have yet to invest in Bitcoin I would suggest waiting until the dust settles in early December to buy in. The Dominant Bitcoin should be clear by then and you should be looking at a great entry point, price wise.
If you are currently holding bitcoin in your portfolio, Again, I think the best thing to do is to let the dust settle before you start moving, or using your bitcoin anywhere. Remember, In order to take advantage of the Hardfork and receive both coins, you need to have your bitcoin off of any exchanges and sitting safely in a secured wallet.