The news about August 1st for Bitcoin seems to be a very big issue at the moment. I’ve been reading about news and articles about it, but I’m a bit confused until now.
I’m using Bitcoin for a while now and as a casual user, I never thought of the difference between it from other fiat currencies. To tell you guys this is my understanding about Bitcoin ever since: It is a digital currency, that uses private keys that protect my privacy when transacting; it has an open ledger for visibility of transactions whether it has completely been processed or not; It has limited supplies that can have a higher price when demand is going up; It is not literally mined by miners (just like gold), thus transactions made are being completed by the miners(which is run by high powered computers) for some sort of reward from miner fees or somewhat called transaction fees; lastly It’s something that I can use to trade and make money. That is all ever since.
Right now, as we’ve noticed recently the price of Bitcoin is kinda weird. Well, honestly, for me it isn’t that weird because base on my understanding the price went really high and that most traders, of course, sold their Bitcoins to earn from it. I guess it’s really normal, however, because of the huge drop in Bitcoin price many new traders tend to follow the selling trend because of an exaggeration of Bitcoin’s end. Once again, that is based on my own understanding before.
However, they’ve been talking about August 1st a lot. After seeing some articles, I found out that there are some other factors why this Bitcoin price has dropped and why it came to be very controversial.
So what are those other factors? They say that since the Bitcoin network is getting huge, there should be someone controlling the network and they wanted the miners to do that, which is being opposed by other communities since Bitcoin’s purpose of existence is for it not to be controlled or regulated by others for it to become decentralized.
Not only that, if you had Bitcoins for some years now like me, you’ll notice the difference in how transactions work nowadays. Before it’s fast and most likely no transaction or miner fees are involved. But today since Bitcoin became too popular, many transactions are being pending on the miner’s bucket because the network can no longer handle it. Because of that people tend to transact lesser than the usual because of the time it’ll consume and the fees that involve them.
Large companies and communities (or whatever they are called) who are really devoted to Bitcoin proposed two resolutions about the current situation. They call it SegWit and Bitcoin Unlimited.
It would be lovely if I’ll discuss it now, but I think this post is really long. I’ll send a separate post tomorrow explaining SegWit and Bitcoin Unlimited in layman’s terms.
August 1st would be the announcement of what solution could happen for Bitcoin, whether SegWit or Bitcoin Unlimited.
To give you a heads up, at this moment it seems that SegWit is about to win and I’m really in favor of that too. Hope you guys can hold a little bit by tomorrow morning. I’m in the hospital right now and I just really wanted to share my thoughts tonight before I sleep.
If you know better about the current situation, feel free to leave us a comment for some discussions about it.
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