BITCOIN SETS SIGHTS ON $3,500 Bitcoin pared losses sustained in the prior session to trade near all-time highs, as a key software upgrade, aimed at speeding up transactions on the network, nears implementation.
On the U.S.-based Bitfinex exchange, bitcoin rose to $3,422.4, up $63.8 or 1.90%, just shy of Tuesday’s high of $3482.9, following the adoption of BIP 91, a software upgrade that seeks to introduce something known as SegWit2X was adopted by the blockchain supporting bitcoin.
SegWit is short for “segregated witness” and proposes to move some of the data outside the main bitcoin network to increase its capacity, speeding up transaction on the bitcoin network.
The SegWit rollout, which will take two weeks to fully implement, is seen as a milestone for Bitcoin.
Bitcoin Cash followed Bitcoin’s move lower, easing 10.5% to $290.34.
Bitcoin Cash, was created as a result of a ‘civil war’ in Bitcoin, after some members of the bitcoin community rejected software upgrade SegWit2x on the back of concerns that the measure fails to adequately address bitcoin’s scaling problem.
Bitcoin transactions are limited to one megabyte every 10 minutes – or seven transactions per second. This compares to 2,000 per second for Visa and means that at peak times bitcoin transactions can take hours to be fulfilled, inhibiting the currency.
Bitcoin Cash seeks to increase the block size to eight megabytes whereas SegWit2X proposes moving transaction data outside of the block on a parallel track with plans to increase bitcoin’s block size later in the year.
Meanwhile, Ethereum, hit one-month highs rising about 2% to $310.05.
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