After half a year of struggles in the Bitcoin community, the leaders of the SegWit2X program announced that they are freezing their program, a program that was designed to optimize the use of currency. Meanwhile, the Bitcoin's technological conservatism is helping other competing digital currencies accumulate a significant share of the market.

It seems that the members of the Bitcoin community have managed to avoid a difficult "civil war" that would have led to a split in the popular digital currency's price, a split that would have endangered its meteoric rise so far, this year.

With the fears of a split fading away, the price of Bitcoin took off again when last week it was traded at $7,879 per unit, recording a rise of over 600% since the beginning of the year.

Over the last few weeks there has been reports insinuating that the Bitcoin was expected to be split again, a group of companies decided to retract their offer for a new version of the Bitcoin software. This software, called SegWit2X, could more or less double the data processing capacity of the Bitcoin network, that is, the number of currency transfers that the network can handle, making it more marketable.

The move, which could have increased the Bitcoin's attractiveness as a payment system, was vehemently opposed by a leading group of software developers. This resistance, which began with technical arguments, quickly moved into an argument over who would control the popular digital currency.

Keeping the Harmony among the Bitcoin Community –

Keep the Harmony.jpg

The issue of control over the Bitcoin is a particularly sensitive subject, given that the virtual currency is created as an autonomous decentralized network that is not controlled by any factor, society or government. In addition, many of the opponents of the new software view the Bitcoin as a valuable asset, like virtual gold therefore are not concerned about its use as a payment platform.

The two camps, For and Against the split, have fought each other fiercely in the past six months, and the struggle has only intensified in the recent weeks. Last week the group that supported the increased processing capacity of the network gave up the fight.

The SegWit2X developers said that while they still very much believe in the need to increase the data processing on the network, there is something they believe is even more important, and that is maintaining the unification of the Bitcoin community.

Bitcoin chart.png

The use of Bitcoin has expanded rapidly in recent years, but its processing capacity has not expanded. This situation has caused "traffic jams" on the network and higher commissions were charged for each transfer. Although the industry recognized the problem years ago, there is still a dispute over how to solve it.

The focus on the volume of transfers diverted the Bitcoin's technological development and enabled other digital currency projects, such as Atrium, to grow and take advantage of a significant share of the market. The Bitcoin is still the largest digital currency among over than 1,000 digital currencies, with a market value of about $125 billion, according to the web site Coinmarketcap. However, this share now accounts for 61% of the $210 billion total digital currency market, considerably lower than the 88% it accounted for at the beginning of this year.

Till next time, Trade Simple….