A third version of the world’s largest cryptocurrency, Bitcoin, is on the horizon. Why? Miners and developers are pursuing separate visions to scale its rapidly expanding marketplace.
Investor Roger Ver, otherwise known as “Bitcoin Jesus”, indicated that a consensus between opposing camps seems increasingly unlikely. Recently, a group of miners — individuals who crunch complex math problems to generate and transact the digital currency — split off from the legacy bitcoin to generate a new format known as Bitcoin Cash. Ver admits that as more coins are created, he would potentially benefit from such a schism.
Specifically, during an interview on Bloomberg Television in Hong Kong, Ver stated: “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.”
It is undeniable that Bitcoin’s recent popularity has led to impediment in trade, with transaction times and processing fees surging in historical highs.
The first split occurred around the beginning of August — when Bitcoin Cash was formed separately from the original currency. The digital currency initially plunged 6.8% in a two-day slide as investors were dubious over the value of the new coin. But, within a month, prices reached a record $4,880.85 by September 1st. China then announced a stringent crackdown on cryptocurrency exchanges, and prices went down 20% again.
The second split refers to SegWit2x, which was a compromise proposal developed to deal with the surge in transactions. Despite SegWit2x receiving more than a 93% support vote in July, miners and developers are backing away from the proposal.
Either way, another split in the popular cryptocurrency would mean a further scatter of capital and resources. What does that mean? Users will become more and more confused as to what version of the currency can be dubbed the actual “bitcoin.”
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