The world’s largest crypto diet Bitcoin has returned to the uphill path and takes course to new record levels. It was a sobering month of July for the Bitcoin community. The world-wide digital currency has risen massively in recent weeks but still is down 40 percent since the all-time high, marked only in mid-June. But now Bitcoin is heading back to its highs.
Technology has reached its capacity limit
The background for the latest stock prices, in addition to concern for a bubble formation, were in particular discussions about the future of the blockchain technology behind bitcoin. As the demand for Bitcoin has grown dramatically in recent years and the technology has reached its capacity limit due to a large number of transactions, adjustments are inevitable. But between different Bitcoin prospecting groups, a dispute about the direction of the reorientation had flared up.
A proposal that is a compromise between the conceptions of the Bitcoin community is BIP 91 (Bitcoin Improvement Proposal). If the majority of Bitcoin Miners agree to this compromise, the corresponding software upgrade SegWit will be launched in two weeks, on August 1st. Then the block size of the blockchain is to be raised from currently one megabyte to then two megabytes. The core developer team also wants to guarantee a much faster processing of the transactions, which at the current time can in the worst case extend to several days. In addition, off-chain transactions should also be possible.
Blockchain changes likely
Now it looks as if the Bitcoin-Miner actually the agree to the changes. A lot of the owners of the computer power have already signaled their ok. This seems to have averted a feared split in the digital currency.
Course reactions are clear
The Bitcoin community seems to be relieved that the dispute over the reorientation of cryptography has not escalated. The course of the digital currency reacted correspondingly to the news. On a dollar basis, Bitcoin alone grew by more than 20 percent this week. With a price of 2,767 US dollars, the currency is again heading for its all-time high, which was marked at just under 3,000 dollars.