- July 31st could be a turning point for Bitcoin (BTCUSD on xStation5)
- If there is no a common stance until then, it could result in a division of BTC
- Bitcoin plunges following news and could be on tenterhooks by an end of July
We just mentioned an issue pertaining to a massive risk to Bitcoin on Friday, today we want to reveal more details on this aspect alluding to Bitcoin’s price. First and foremost, let us pin down what happens on July 31st. The date means a deadline for people who maintain Bitcoin to agree to implement a major software upgrade being aimed at improving capacity on the increasingly clogged network.
Let’s dig into some details which are not so easy as it would seem on the face of it. There are two opposite sides regarding a software upgrade. A first group (ordinary Bitcoin’s holders) aches for that upgrade which could speed up payments by re-engineering Bitcoin’s universal ledger, a file called the blockchain. In contrary to that view, there is another group (BTC’s ’miners’) who do not want any shifts as they are rewarded for verifying transactions. Let us explain, the coins are created by computer farms which ’mine’ them and verify others users’ transactions by solving complex mathematical puzzles. Miners receive Bitcoins in exchange for correct resolving of those equations. In short, under a new software they would receive less money, that’s the reason why they opposite to it.
What could happen should there is no a joint stance till July 31st? First of all, it could carry enormous unrest in the Bitcoin market, since no one really know whether Bitcoin they’d paid or received was actually moving through the system in the way it’s supposed to. It’s worth mentioning that some large BTC’s miners from Chinese which are equipped with Bitmain Technology (it is able to provide the most effective Bitcoin mining solution on today’s market) have not signaled support for the new system. That rift and lack of consistency could result in two or even more incompatible versions of Bitcoin. That constitutes a major risk to the digital currency.
Bitcoin plummeted on Friday following the report concerning a possible adverse effect stemming from a software upgrade. A 100-moving average on a H4 interval could ensure a support at it has taken place twice until now. Source: xStation5
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