As per the latest reports coming from Bloomberg, Bitcoin is headed for another split this year in November while creating a third version of the most valued cryptocurrency. One of the major reasons sighted for this is the difference of opinion between the developers and miners relating to the future scalability of Bitcoin.
Roger Van, a prominent name in the cryptocurrency industry, has said that it is highly unlikely that a common consensus and understanding arrives between the two opposite camps. Roger’s opinion has been echoed by many of the core developers of the Bitcoin infrastructure and who were initially involved in creating the Bitcoin network.
In past few weeks, miners of Bitcoin had split to use a new version known as Bitcoin Cash. Roger says that he is most likely to shift some of his funds into the new offshoot as he believes to benefit from such a move. In his recent interview on Bloomberg Television, Roger said:
“There’s probably going to be another split between bitcoin legacy and SegWit2X version of bitcoin but that just gives me more coins that I can sell for the Bitcoin Cash version.”
Ver’s earlier participation in the Bitcoin Cash has received much criticism from developers who have said that he is giving undue and unwanted importance to miners.
Bitcoin splitted into Bitcoin Cash on August 1 this year.
Increasing Popularity of Bitcoin is Likely the Reason for Another Alternative
There is no denial to the fact that there has been a sudden surge in investor participation since the beginning of 2017 which has been constantly pushing the Bitcoin valuation to new highs. This over the period of time has resulted into causing a congestion in trade which has also resulted in increasing the transactions times and taking the processing fees much higher.
Different perceptions and opinions have been presented in order to deal with this situation. Some believe to move the information to a new network while others have been proposing to increase the number of transactions in each block. However, if the two opposing parties don’t arrive at a proper consensus, another split creating a third version of Bitcoin is much likely.
A compromise proposal called as the SegWit2x has been developed in order to avoid a third split in Bitcoin. To avoid this split, a 92-percent consensus is required from miners which is almost unlikely to happen.
Samson Mow, chief strategy officer at Blockstream said:
“Many developers, users, miners, and businesses have already stated they do not agree with the pointless 2x fork, so we’ll likely end up with three chains. Long-term, only the main bitcoin chain which has the support of users and developers can survive.”
Also Read: Hard Fork of Ethereum
A Sign of Caution for Investors
Many investors and analysts believe that such sorts of split can shake the investor confidence which is much likely to see many investors withdrawing their money from the market. Many developers and analysts believe that this time the split will result in more confusion and panic in the market as which version to be considered as the “actual Bitcoin”.
Peter Todd, one of the major contributors to the Bitcoin coding community said
“In a sense, a split is 100-percent guaranteed, and the split is likely to be more disruptive.”
It is right that if Bitcoin keeps on splitting like this and creating another alternatives, it will confuse the investors. This may create two situations: First, the investors would withdraw there money from cryptocurrency market in which we can see extreme falling of price and market capitaliazation.
Or Second, that investors shift to the next best cryptocurrency i.e Ethereum or the silver cryptocurrency i.e, Litecoin. If this happens, price of the mentioned cryptocurrency may rise drastically.
In the long run market experts still believe that Bitcoin has a very bright future. Recently, Tom Lee, the former MD of JP Morgan Chase currently heading the research division of Fundstrat Global Advisors feels that the price of Bitcoin price will cross the $25000 mark within the coming five years.
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