Bitcoin Prices Calm as SegWit2x Activation Looms

FinTech, Investing, News | July 31, 2017 By:

Bitcoin prices remained stable this morning, hours before the big SegWit2x activation and the possible fork with the creation of Bitcoin Cash (BCC). The early morning price sat at the $2,700 level, about what it was on Friday.

The lack of action was helped along by a trading halt on some exchanges and most ATMs. Many are waiting to see what effect the SegWit2x activation will have on their business, and have decided to halt inbound and outbound transactions.

Earlier, many exchanges were experiencing high volumes of traders, with San Francisco’s Coinbase reporting a 12-hour delay in processing requests for bitcoin transfer. The service noted that “all funds remain secure” in a Twitter post and apologized for the delays.

The BCC backers promised to deliver one BCC for every existing bitcoin when the new cryptocurrency was activated. However, several exchanges – notably Coinbase – decided not to bother with BCC, necessitating the move to outside wallets.

Bitcoin has rallied in recent weeks, rising from the $1,800 level to today’s pricing. Many thought that the SegWit2x battles over block sizes were over. But last week, the dissenters emerged, promising a hard fork to create a new cryptocurrency, Bitcoin Cash.

MIXED VIEWS ON WHAT’S NEXT

Reactions to the pending big moment were mixed. Some executives saw an opportunity for their own projects.

Steven Sprague, CEO of Rivetz, a decentralized and mobile cyber-security token,  said he was “very pleased to see the evolution of BTC and to be part of this amazing experiment. But change is always challenging and we have chosen to postpone our crowd sale by two weeks to assure that the process completes as expected and out of an abundance of caution.”

Lon Wong, President, NEM.io Foundation Ltd., said “NEM has an issue with decentralized consensus that can force a cryptocurrency to split. Decentralization of decisions in theory is optimal, but there is a limit to its practicality.  The split will affect the price of NEM in the short term. However, when the dust settles things will revert to normal like they did with ethereum.”

Dave Carlson, the CEO of Giga Watt , a mining service, said “Segwit was the clear technical choice for performance scaling since Pieter Wuille proposed it two years ago.  Layering on additional political concessions (increasing blocksize arbitrarily to 2MB) is and always was (and will be) just a temporary patch.  I’m very confident in SegWit’s value to bitcoin, but the blocksize increase is like when politicians add pork to a bill in order to get it passed by both house & senate.  I maintain that an arbitrary increase in block size will a) have unintended consequences; b) be a shorter term solution than anybody hopes for

Josh Dettman, President atFintech Investment Group / Compcoin, a veteran investor, said Bitcoin Cash “has the potential for a much larger market to adopt crypto payments and make these tokens more main stream. Why? The possibility of a lower entry price could make the coin more attractive to smaller everyday investors. Another barrier of entry that Bitcoin Cash could alleviate is the need to work with minuscule decimals. New investors will feel a lot more confident if they’re not required to execute mental gymnastics in order to determine how their investment is faring.”

The potential adoption of SegWit2x “could move the entire market much higher, and add some legitimacy to the Crypto-market as a whole. My guess is that the BTC Cash will sell-off when (SegWit2x) is released- the question will be can it find a bottom/market to start off from.” However, he added, “BTC will go higher, potentially much higher looking at the charts. BTC short positions are at an all time high- most of the folks who “trade” these coins aren’t traders, so that is always a good sign for contrarians like me.”

Vinny Lingham, CEO of Civic, said the current Civil War was “an unfortunate situation. The community is very divided at the moment around how bitcoin will scale and now there are various proposals and attempts from multiple parties to undermine the current network and system. I personally do not like the current course of action that bitcoin is on, and I think it represents a number of risks to the ecosystem, including fracturing the brand and network into multiple “bitcoins,” with the ensuing media coverage seeding uncertainty and doubt. I am in the minority, as most people in the community don’t believe that the threats facing bitcoin will result in anything other than failed “coup” attempts and bitcoin will win out. I remain skeptical that this resolution will be as simple as that, but would be happy to see this outcome.”

Lingham said the current situation, though, is “a great environment for day traders and speculators. This uncertainty and doubt will ensure that bitcoin volatility reaches new heights, in my humble opinion. Depending on how for risk and volatility plays out, it may dampen investors or pull more in expecting to make a quick return. As someone who makes risk-adjusted investment decisions on a daily basis, I don’t like the risk/reward ratio I’m seeing right now, and I’m happy to sit on the sidelines for the most part until it’s resolved.”

Ivo Georgiev, CEO from AdEx, said, “I think it won’t have too much of an impact, especially in the long term. After a successful agreement between miners on SegWit, the Bitcoin Cash fork is not born out of necessity, but out of opportunity. I still think it’s not necessarily a bad thing, as technical diversity is always beneficial to a young industry like this one.”