Bitcoin price rockets to $2900 at one point as BIP91 locks in

0
1899
Bitcoin Price Surge, Bitcoin Cash

Bitcoin price surged to a whopping $2900 hours after BIP91 locked in and while the price did drop to $2740 levels shortly after that, the indication that months long disagreement and internal debate are finally drawing towards a conclusion was enough to renew confidence in the cryptocurrency.

The BIP91 lick-in means that the Bitcoin Network will finally implement a scaling solution meaning that the activation of SegWit will be imminent. BIP91 proposal lock in means that as long as 51 per cent of the network hash power continues to mine blocks that support SegWit, the protocol will activate and there will be no risk of a major chain split.

For those of you who are not ware, BIP91 is a method of activating SegWit on the bitcoin network as a result of what is known as the ‘New York Agreement’, which is very similar to the original BIP141 deployment method but with a few key differences: first being that the activation period is now 336 blocks and not 2016 as originally defined; and secondly the activation threshold has been reduced to 80{7b1a8a58d3ffe2d8e535e80e794d8bc0bf06a3ecc0c2050b83ca37784c6fddca}, as opposed to the original 95{7b1a8a58d3ffe2d8e535e80e794d8bc0bf06a3ecc0c2050b83ca37784c6fddca}, which was deemed too high and impossible to achieve.

Once the BIP91 is locked-in, miners who signalling for BIP91 and running the BTC1 software developed by Jeff Garzik will start to reject all of the blocks which are not signaling for SegWit thereby resulting into a successful SegWit activation since miners that aren’t signaling will effectively have their blocks constantly orphaned, leading to a significant loss in their mining revenue.

Bitcoin gets major push thanks to BIP91

The BIP91 lock-in and an imminent SegWit activation has given a huge boost to the confidence of cryptocurrency world. SegWit activation will also enable for the deployment of the Lightning Network that will massively scale the number of transactions that bitcoin can handle. Users will be able to make micropayments again without worrying about exorbitant fees, which should lead to wider acceptance in physical stores.

The lock-in of BIP91 also means that Bitcoin will not be splitting into two major chains. While some parties may be unhappy about the second part of the agreement (which is a 2MB fork), investors are relieved to hear that consensus can be reached and that problems can be discussed to find a solution that most are happy with.

Both of these factors pushed Bitcoin price to above $2922 for some time prior to this article going through the publishing cycle. Bitcoin gained as many as $500 – the largest price increase that bitcoin has experienced in one day.

Read: John McAfee: “I will eat my di*k on national television” if Bitcoin doesn’t hit $500K

LEAVE A REPLY

Please enter your comment!
Please enter your name here