SegWit2x 'Tantrum' Pressures Bitcoin to 8% Slump as Bitcoin Cash Jumps 40%


The announcement to shelve the upgrade, however, drew disappointment from investors who had expected that the SegWit2x upgrade would have led to the creation of a new cryptocurrency that would have distributed to current holders of bitcoin.

The war isn't over, but the battle today goes to Bitcoin Cash, as the cryptocoin that resulted from the contentious August 1st hard-fork just burst past the $1k price point for the first time.

The fork that had been planned for next week, known as "SegWit2x", had also meant to increase the capacity of the blocks, and could thus have reduced fees for bitcoin transactions.

Jihan Wu, the co-founder of one of most recognized and valuable bitcoin companies Bitmain, and Roger Ver, Bitcoin angel investor, were also involved in the NYA, but b backed out of the agreement early through their own fork, Bitcoin Cash, a direct response to the User Activated Soft Fork (UASF) which enabled SegWit.

"It's been a battle of investors versus traders that were stockpiling bitcoin to get their 'bitcoin2x dividend, '" Bitcoin author Chris Burniske aptly noted to CNBC. It allows for bigger "blocks" of transaction to be processed, speeding up the network. Bitcoin has been shedding around 30% of its mining power in the past month, while the Bitcoin Cash hashing power rose, to surpass the total hashing power of the leading blockchain in the past 24 hours.

At the moment, Bitcoin Cash is more profitable to mine.

Trading volumes of Bitcoin Cash are close to the normal daily volume of Bitcoin in recent weeks.

Clearly, bitcoin and Bitcoin Cash have two contrasting visions; one envisions to evolve as a robust store of value, while the other aims to become a flexible settlement network or a digital cash system.

With a block size of 8MB and several teams of developers that are competing to create a better version of Bitcoin, today's price action across cryptocurrency markets shows that it is well on track. Bitcoin, Ethereum, Bitcoin Cash, Ripple, and Litecoin, five of the largest cryptocurrencies in the market, all have contrasting philosophies, structures, and infrastructures.

Bitcoin cash has shot above $1,900 according to coinmarketcap, more than double its value on Friday when it had already hit a three-month high.

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