What is Bitcoin Hard Forks, and Segwit2x?

Bitcoin Gold comes out as a new cryptocurrency which was spilt from Bitcoin gold. After some time, a new currency was originated known as Segwit2x. It resulted in the bitcoin blockchain in the form of a hard fork. The article will let you know about the hard fork and Segwit2x and the impact of these on Bitcoin. For more information, you can visit https://finixioai.com

What is a Hard Fork?

The software used by bitcoin is open source which means it is available for all to utilize. As it develops, there is always a requirement for some changes to the bitcoin source code to make sure that it will be adaptable for specific purposes. Although this alteration either could be little or more than expected as per blockchain nature. And when the blockchain splits into two parts based upon the basic changes as per the regulations governing the system, splitting parts of the blockchain is known as a hard fork. However, these rules permit the generation of new blocks which would be incompatible with other systems. Because its non-altered nodes are not capable of validating the nodes which were generated by the upgraded one via the implementation of changing rules. Hard forks are the result of the upgradation of the software. 

Different opinions about the hard fork 

The crypto community presents different points of view for different assets and if it is about the hard fork, they think about Bitcoin and whether it will be favourable for the community or not. If we take it as positively, these opinions could bifurcate the opinions of the community to make their developments on their levels. And if we see the negative side of it, investors could be confused with such plenty of hard forks. 

Other problems faced by the hard fork are reaching unanimity.  Because without consensus, the hard fork van would weaken and it would be difficult to make the community decentralized. 

Segwit 2x

The Segwit 2x hard fork is a technical settlement emanating from a consensus reached in May 2017 among an enormous number of Bitcoin businesses  and miners, figured out as the New York Agreement. Segwit 2x aspires to increase the size of every single block on the Bitcoin blockchain from 2 MB to 4 MBB. According to supporters of the hard fork, the diminutive size of Bitcoin blocks integrated with the raised vogue of Bitcoin has led to congestion and uncertainties in the quantum of time so that the transaction can be verified. Hence the transaction fee will rise and incentives for the transaction would be implemented. Thus every Bitcoin user has two options, one is to pay higher fees for speedy transactions and the second is to ignore the higher fees and work with slower transactions. 

What to do if you own Bitcoin?

Although a hard fork is a new and innovative start for bitcoin holders. The cost of bitcoin gold in exchange is 1 BTG to 1 BTC, which means holding a fork can double your Bitcoin holdings. Also, forks are not certain hence the value of your coins can change as volatility occurred in the digital market. For instance, during the writing period of bitcoin gold, its value was reduced to 65% from its value on the day of the hard fork. 

Conclusion

As of now, it is very difficult to say what the impact of Bitcoin and Segwit 2X would have on the bitcoin blockchain. As bitcoin gold prices drop instantly in the starting period of trading but it or any other forked currency could remain the same hence being a reason for success in the long run. The question will always be a topic of debate whether bitcoin is gaining much or not due to its increasing popularity of Bitcoin versus altcoins.