Bitcoin shoots up to 15% after the 'success' of the new software version

soyjorge (41)in #bitcoin • 7 years ago

The success of the new version of the software is partial, but the bitcoin goes off.

The bitcoin tries to recover part of the lost ground during the weekend, when the digital currency even lost the psychological support of 2,000 dollars. However, once a significant part of bitcoin 'miners' have accepted the new software, something that was doubted, agents have regained confidence in this currency that is appreciated by up to 15% and already exceeds 2,300 Dollars per unit. However, the internal war is not over, only a battle has been won. | This is the world's largest bitcoin mine.

The new version of the software, known as SegWit2x, seems to have reconciled the two opposing sides in this digital market: the 'miners' acting as the backbone of the block chain, and the developers known as Core who defend another Software for bitcoin. Although both parties have incentives to reach a consensus, the lack of central authority (no one who controls this currency) of bitcoin has hindered the agreement's arrival, according to the Bloomberg news agency.

It seems that this solution is used to make the transactions take up less space in the blocks, that is to say, the number of transactions per block increases without resorting to a hardfork (a network fork not compatible with the historical network).

The difficulties arose from the very success of this currency. As more transactions with equal processing conditions took place, what is known in economic jargon as bottlenecks was produced. Therefore, the so-called 'scalability' of the system needs solutions to lighten the network efficiently, that is, the size of the blocks and the speed of confirmation, as explained from CryptoNoticias.

SegWit2x was officially released over the past weekend and has already been adopted by big 'miners' like Antpool, BTCC and Bixin. About 55% of the blocks extracted in the last 24 hours were done with SegWit2x, according to coin.dance, which monitors blockchain activity. | More information about Segwit2x and the bitcoin war.

How does bitcoin and mining work?

To get a bitcoin you need a computer and a special program. What the mining programs do is use the colors of the CPU or graphics card to calculate codes that are linked in blocks. A block is a set of committed transactions and additional information that has been included in the block chain. Each block that is part of the chain and every time someone completes a block receives a reward in the form of bitcoins.

However, it is very difficult to get a bitcoin with a normal computer and acting individually, so the so-called mining pools are used. These are mining groups (many people and computers), that joining forces make bitcoin mining more efficient. Still it is important to have a great technological equipment to achieve results, the better and the more graphic cards are used the greater the options of finding a bitcoin.

More Acceptance is Needed

Returning to the software: if the support reaches 80% and maintains that threshold in more than two days, the bitcoin will be much closer to avoiding a split.

"Traders are excited about the positive outlook for a possible resolution to the debate, so the price has skyrocketed," explains Thomas Glucksmann, marketing director at Hong Kong's bitcoin operator Gatecoin.

Despite the progress with SegWit2x, some have warned that bitcoin is not safe yet. Many Core members (developers commented at the beginning of the article) still vehemently oppose new software, which they say has not been properly researched and has errors. Also, not all miners support SegWit2x, which they say is a faulty system that does not solve root problems.

"This price hike is a rebound, we are very bearish in the short term for several reasons," said Harry Yeh, managing partner of digital currency distributor Binary Financial, who cites the lack of support from Core developers as one of its Concerns. "Every time the price rises rapidly, the movement will be followed by a strong correction. We are definitely headed for some turbulent and volatile times in the short term," he said.

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