Was bitcoin’s rally just a short squeeze? Bitmex CEO isn’t convinced

After the hard fork in the beginning of august, a new cryptocurrency appeared out of nowhere. As you may already know, we are talking about BitcoinCash. If you felt contraried by the hard fork take a seat, as it seems that a new fork will happen this year.

The Segwit2x working group has announced their plans after the upcoming bitcoin Core client 0.15.0 will automatically disconnect nodes supporting the SegWit2x fork.

Extract from the original announcement.

The November 2017 upgrade to 2MB blocks is a hard-fork, but necessary changes are trivial to perform. Some SPV clients are expected to work without any change at all. Most clients will need to tweak only two constants to remain compatible with the new larger blocks.

The main stake of Segwit2x controversial plan is to enlarge the transaction capacity of bitcoin.

What could this mean for bitcoin and how could affect it?

This new fork will create a new bitcoin Blockchain version as well, but the question is wheater it will get support from miners or not. This is one of the most important aspects, without which it’s impossible to thrive. Because of necessity, Segwit2x supporters are keen on splitting the chain once again.

The first signs could be seen in late October but in November, the prices may really become more volatile than ever.
A major impact for the main bitcoin, in the long run, is hard to predict.

In may on New York, after the agreement was signed, SegWit2x group got support from more than 50 companies around the world and more or less 83% of the hashing power. Taking this into consideration, you may think that Segwit2x plan will go smooth but if the mining gets unprofitable, miners could easily change minds and go back to mine the main bitcoin or even bitcoin Cash.

Important to remember is that the signatories of the New York Agreement, are under no obligation to mine exclusively the “2xchain”. This means that Segwit2x will let bitcoin miners choose to run the new software and the keyword here is “profitability”.