Bitcoin Price Soars…Again

What Happened to Bitcoin Price?

Bitcoin’s price went crazy last Wednesday after supporters for a new version of bitcoin, SegWit2X, suspended their plans to split. The ‘hard fork’ was called off as the group did not build up enough consensus from the community.

Bitcoin surged up to around US$7,700 after the announcement. That is almost US$1,000 over the amount it was trading a week before. It has since dropped and is now trading at around US$7,350.

In case you were not aware, the bitcoin community has been in the midst of a massive internal fight over how to update the software that runs bitcoin.

On one side there is the miners, who want to double the size of the bitcoin blocks. They argue the currency needs larger blocks to reduce transaction fees and times. Current blocks are 1MB in size and they are added every 10 minutes.

On the other side, there is the developers, who want to maintain the core fundamentals of bitcoin as they are.

Bitcoin has had many forks in its short history. Yet, what was different about this one was that if it divided, it would not have been clear which version would have been the official one.

What Now for Bitcoin?

Miners dropped plans for the split after fearing that continuing with the disagreement ‘could divide the community and be a setback to Bitcoin’s growth.’

The battle may be over…for now.

But as bitcoin keeps attracting more users, the controversy on how to accommodate new growth will likely come up again.

PS: If you want to know more about the bitcoin boom and why this investment is more than just a fad, go here.

Selva Freigedo,

For Money Morning

Selva Freigedo is an analyst at Money Morning. She has a background in financial economics, but what makes Selva´s experiences different to many are the places she has lived and worked. Born in Argentina, she has also lived in Brazil, the US, Spain, and now Australia. She has seen up close many of the economic phenomena that worry Fat Tail Investment Research readers, like hyperinflation, bank bail-ins and governments burdened with so much debt it cannot possibly be repaid.

Every week, she goes through each article, research note and recommendation produced by our experts around the world to give you information on how to build and protect your wealth. Selva packages the week’s best ideas into one easy to read report: Port Phillip Insider Extra.

Money Morning Australia