Cryptocurrencies are experiencing a bit of an identity crisis right now. While there are many parties involved that are deeply invested in it, others are skeptical about its true value. In this year alone, we’ve seen bitcoin valued at just under $1,000 in January to over $3,000 in May and soaring over $4,000 this past weekend.
One of the major factors impacting the most recent leap in bitcoin value is the recent hard fork to develop a new cryptocurrency dubbed Bitcoin Cash. Not long after this news, it’s being talked about via Motherboard that bitcoin may be split into a third new virtual currency. Through this new cryptocurrency, dubbed Segwit2x, there will be two megabyte blocks in the blockchain ledger, which will allow it to operate faster than bitcoin but still slower than Bitcoin Cash. Developed underneath the New York Agreement, Segwit2x is a way to increase transaction block sizes with various witnesses in tow.
While bitcoin is said to not have the ability to process financial transactions at the swift rate of digital commerce, and Bitcoin Cash may have too much to handle with its speed, the hope is that this new virtual currency stemming from bitcoin will be a happy medium between the two. Segwit2x will operate underneath its own rules, but there is fear that too many options in the bitcoin space could lead to one of the three options falling to the wayside.
Set to be launched officially as the third bitcoin in November of this year, Segwit2x may be the right combination of cryptocurrency and speed needed for today’s digital finance evolution. As time moves forward, there will likely continue to be adjustments and refinements of the ever-growing digital currency of bitcoin and its counterparts until the right balance is achieved.