July 26, 2017
Last week BIP91, the bitcoin upgrade designed to solve the scaling issue, surpassed the needed 80% backing. It was activated Saturday, July 22, after 93% of miners signalled their support. There is a next step: More than 51% of miners must start using the BIP91 protocol by August 1 for it to be fully adopted.
BIP91’s lock-in will enact the first part of the broader bitcoin upgrade, SegWit2x, discussed in last week’s post. The weekend milestone is a victory for SegWit supporters. Some call it a “new dawn” for bitcoin.
The uncertainty leading up to an agreement caused some turbulence in the bitcoin price last week. Alex Sunnarborg, a research analyst at CoinDesk, told CNBC, “I believe the market is currently somewhat torn between the optimism around BIP91 locking in, which could lead to SegWit activating if all goes smoothly, and the fear of the second half of SegWit2x proposal, the 2MB block size hard fork, still being contested.”
Opinions remain divided over whether the feared “hard fork,” which would split bitcoin into two separate assets, will occur. However the majority opinion is that it’s seeming less and less likely. Following a temporary dip, the price is hovering around $2500 as of this writing. Stay tuned…