9 Oct, 2019

Is SegWit 2X Bitcoin Fork making a comeback?

With the increase in demand for Bitcoin, the fee for transactions has been steadily increasing causing problems for users. The fee has increased to above $50 if users want faster confirmations. For this reason, traders have been looking into alternatives like Bitcoin Cash, Litecoin and Monero which have faster transaction speed with a lower fee.

2018 has been the year of forks for Bitcoin, with the biggest one being Bitcoin Cash. But the most controversial fork set to happen was SegWit 2X which did not go through because the community was divided on it. But now with the increased Bitcoin fee, the original developer behind the fork wants to bring it back.

According to the official site, SegWit 2X fork is set to happen at block 501451, which will be mined approximately on 28th December. The development of the fork is led by Jaap Terlouw, the original developer of the fork. Here are some of the new features that the fork will be bringing to Bitcoin:

1. An increased block size of up to 4MB. Currently, the block size of Bitcoin is capped at 1MB.
2. Faster block generation rate. A new block will be created ever 2.5 minutes which ensures faster transaction confirmations.
3. Replay Protection will come with the launch to ensure the Blockchains of Bitcoin Core and B2X do not talk to each other.
4. A unique address format so that people don’t confuse themselves with Bitcoin Address.
5. The complexity of mining will be recalculated after each block is mined, ensuring a fair distribution of revenue to miners.
6. X11 encryption will be used which is expected to be a lot more secure than the encryption currently used with Bitcoin Core.

Initially, when SegWit 2X was proposed back in June, it had a majority support of more than 80%. But it quickly failed, and the fork was abandoned. With the current attempt, the coin once again does not have any support. At the time of writing this article, the fork is expected to happen a few hours from now, and it has less than 5% of the network support.

At this point, B2X does not seem like much. It needs a lot more support for it to be a good fork. You’ll be getting B2X in 1:1 ratio like every other fork, but at this point, the only exchanges accrediting B2G are HitBTC and YObit. These two exchanges add all coins available, and it does not mean much.

Also, HitBTC has an option to trade on B2X futures, where the price jumped from $180 to $650 on news of the revival of the fork. Currently, it is trading at $672.

At this point, traders do not have to do anything about it. Chances are, the fork will fail to materialise because of the lack of support. But in case it ends up being successful, all exchanges will adopt it, and users will be getting B2X for the amount of BTC stored in their accounts. It is not worth closing your positions in other trades to buy BTC since the chances of good returns look bleak. But if you have to, you can still do it in popular exchanges like Bittrex and Binance just before block 501451 is mined. This way, B2X will be credited to your account if it gets more support in future and gains in value.