Bitcoin Surges Towards $3000 as Threat of August Fork Seems Averted

This week provided one of the best examples of why cryptocurrency trading is still a roller coaster ride unsuitable for the timid. After the price of Bitcoin fell as low as below $1900 on Sunday, it has bounced back to as high as over $2900 in trading earlier today - a jump of more than 50% in less than seven days.

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The reason for both the crash and the rally is the ferocious debate in the Bitcoin community about implementing a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term feature called Segregated Witness (SegWit) which is meant to add to the transaction capacity of the system.

When it seemed that a consensus going forward was out of reach, many feared that users will choose to activate a soft fork on August 1st, essentially breaking the Bitcoin blockchain into two competing splinter Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. This obviously was not good for investor confidence, encouraged short sellers and hurt the price.

Now that the threat has apparently been averted, positive investors are returning to the market. The consensus was reached as an overwhelming majority of bitcoin miners signaled their support for SegWit activation under BIP 91 (Bitcoin Improvement Proposal 91).

Congratulations bitcoin. Barring any shenanigans, Segwit will be activating soon. I'm going to have to upgrade it from appendix to chapter

— Andreas (@aantonop) July 21, 2017

The bitcoin community is obviously hailing this rare achievement of consensus among the different factions as an important milestone. However, caution is advised as one can never be truly certain how will things turn out with this wild ride.