Coming in the middle of this month, November of 2017, Bitcoin will be undergoing what is possibly the largest hard fork to date. All over SegWit2x, a controversial scaling solution, of which it is currently halfway to being completely implemented.
In August, the Bitcoin network underwent a separate hard fork that created Bitcoin Cash, due to the opposition to SegWit. With SegWit2x, there seems to be even more opposition to the scaling solution, partially due to a lack of protection against replay attacks.
By looking at bitcoin’s price, one would hardly conclude that the original blockchain currency is potentially facing turmoil. Bitcoin added a staggering 24% last week en route to fresh record highs. However, one of the motivations for buying bitcoin is the hard fork itself. If you own bitcoin on fork day, you will also receive an equal value of the newly minted digital currency.
Like the hard forks before it, the main crux of the debate is how to best optimize the Bitcoin network. Backers of SegWit2x want to double the size of bitcoin blocks to boost transaction capability.
If you’re a trader, there’s even more confusion about whether BTC and B2X will have any price correlation. Following the Bitcoin Cash hard fork, BTH and BTC appeared to be inversely correlated for a while. However, lately, anything named bitcoin has moved in the same direction: Up.
What will happen post-fork is to be seen, as there will likely be some uncertainty in the market regarding Bitcoin, due to there being yet another coin calling itself Bitcoin. One thing is for certain however, and that is up until this point the prices for anything Bitcoin have gone up tremendously in the last week.