Daily: What the Fork?? (Bitcoin Gold, Segwit 2x)

What's up everyone my name is Michael and welcome to Box Mining Daily. Today will be a forking episode all about the forks. So we're going to start off with the market recap first but then we're going to move on to the Bitcoin Gold fork. Kind of a update on what's happening with the Bitcoin Gold and kind of what's happening with the network. Then we're going to talk about SegWit2x. There's a lot of drama and exchanges are finally issuing out statements regarding the SegWit2x fork. So I thought this would be a great topic to cover all together. I do want to say that I happened in China for the past few days and I couldn't upload videos there. So what I'm going to do is I'm going to do a special episode here and then I'm going to do a news recap later on today as well. So guys I would like to say that opinions covered here are my personal opinions and not financial advice. Let's start off with the market recap first of all. So a lot has happened over the past few days and yet the net result is kind of where we left off exactly two days ago. So with the price of Bitcoin, the price of Bitcoin fell after the launch of Bitcoin Gold. So that was a little bit of a dip that we saw after the launch and then we had a mini rally. So we rallied to a point where we're back at 5,753. So it seems as Bitcoin is around quite stable around the 5,700 level. And that seems to be where we're happy at right now. The altcoins on the other hand, if you look at the kind of history was that when Bitcoin Gold was launched, altcoin took a mini rally and a little bit of a drop. So it kind of is leaving off a little bit point that's a little bit higher than what we had before. But overall, the net result is kind of similar. We do have a lot of green on the market today because yes, there was a rally from yesterday. So now let's move on to Bitcoin Gold. That was the biggest launch that kind of really affected the markets and the market emotions. So Bitcoin Gold launched at around 500 and then it dropped. So it dropped right now to around 100. So remember how I predicted around $100 for Bitcoin. So it wasn't really far off from the point we are now. So I experienced a little bit of volatility. There's huge dumps where I think, I guess, major players and holders of Bitcoin were dumping their Bitcoin Gold. The thing is, of course, there is a lot of exchanges trading with Bitfinex, HitBTC, and Binance all trading Bitcoin Gold. So right now at this point with Bitcoin Gold, is it going to be stable? I think one thing is that a lot of people still haven't got access to their Bitcoin Gold yet. So for example, if you store your Bitcoin in a ledger, which is the most secure way of storing it, the ledger support for Bitcoin Gold has not yet been activated. So there might be future drops once the ledger support for Bitcoin Gold has been activated and people can start withdrawing that Bitcoin Gold and throwing it on the market. So there might be further fluctuations ahead. I think right now, whilst it seems like it's coming down, the price fluctuations aren't that great, there might be a lot of further volatility ahead as wallets start supporting Bitcoin Gold, people can start withdrawing it, they're no longer afraid of this replay protection, etc. And that might have a drastic impact on the price of Bitcoin Gold. So right now we do have it at $138, and maybe that might change drastically over the next few weeks. Of course, this has opened the floodgates because whilst it seems like Bitcoin Gold prices are dropping, the fact is that Bitcoin Gold is still worth $100, which is still a lot of money and it got listed in so many exchanges, which has resulted in the creation of more Bitcoin forks. So the reason for this is because Bitcoin Gold, the developers have pre-mined it. So they mined 100,000 Bitcoin Gold after the fork, and now they have in their own possession, 100,000 Bitcoin Gold. So if you multiply that by this price, it's around $10 million for a few developers. So now every developer wants to be a millionaire. And the easiest way to do that now with the kind of the Bitcoin Gold has now set the precedence, is to fork Bitcoin and pre-mine a few coins. So now we have Bitcoin Silver being announced, and then we have a few jokes. Ivan, I saw, was playing around Bitcoin Bronze, but it's definitely something that is on the table now that Bitcoin Gold is still kind of relatively a coin. We definitely have the community being upset. Like, is this really happening? Why are we forking Bitcoin again and again? Obviously, it's going to cause a lot of confusion in the future. But one thing I do have to say is that because Bitcoin Gold wasn't as successful as the Bitcoin Cash Fork, because in Bitcoin Cash, when a fork, the price of Bitcoin wasn't affected. But here, we did have Bitcoin dropping and the value of Bitcoin Gold is not greater as much, kind of like a third of the value of Bitcoin Cash. What we might see in the future is that developers will attempt to fork Bitcoin multiple times. It's quite easy to fork it. It is decentralized. The code is open sourced. And of course, you can add things to it. So there is definitely going to be people who are going to fork it. And the thing is, there's going to be less and less media attention to these forks. And as a result, it's going to be very likely that these forks are going to worth less and less money until this method of creating money for developers has been kind of closed. But of course, there is one fork that is probably on everyone's mind, which is Segway 2X. So this has been extremely, extremely contentious. And I do want to touch upon this a little bit. And I'll make a separate video to describe what the whole fuss is about. But the whole story short is that Segway 2X is the doubling of the Bitcoin block size from one block, one megabyte to two megabytes. The thing is, for this to happen, you need to do something called a hard fork because Bitcoin by default rejects anything that's larger than one megabyte. So by doing this, you're going to create a change in the network consensus code. And the thing is, you have to get everyone to agree to it. But of course, not everyone's going to agree to it because not everyone supports Segway 2X. So it's very likely that upcoming fork will split Bitcoin. So split Bitcoin into two coins, one possibly called Bitcoin and one possibly called Segway 2X. The thing is, of course, it gets a little bit more complicated than that because this is actually Bitcoin civil war. It's not just about a simple change in the block size of Bitcoin. Rather, it's more about who has control over the code, who has control over future development and the future direction of Bitcoin. So they both believe that they are Bitcoin. They are the original Bitcoin. They both want to be called Bitcoin because if they are called Bitcoin, they will have the greatest value. So this is unlike Bitcoin gold, where it's very clear that they are called Bitcoin gold. They're different. They're just a altcoin. But in this situation, the Segway 2X fork is going to result in two coins that both want to be called the same name. They both want Bitcoin. So we have Coinbase, one of the largest fiat to cryptocurrency exchanges in the US and UK. And that's why they're very important. They have initially announced to say that the current block size Bitcoin will be called BTC Bitcoin and the fork Bitcoin with the Segway 2X fork will be called B2X. The thing is, of course, recently they reversed that. They said, all right, maybe this kind of violates the agreements that we have, this chain exchanges, the political situation. So what we're going to say is we're going to reverse that statement and we're going to temporarily call that B2X. But we're going to do one thing, which is we're going to wait for which one the miners support. So this is the one with the highest difficulty because the more miners that support it, the more difficult it is to mine that Bitcoin. So we're going to call the chain with the most accumulated difficulty Bitcoin. So they're more towards a minor side of things. And I'm going to show you an example of how this works. The thing is, what we see with Bitcoin cash is that the chain length is actually quite long because of the way the difficulty readjustment algorithm works. But what we do see, of course, is that with Bitcoin cash, they have lower hashes, network cash difficulty. So this is a chart on fork.io, the blue line is Bitcoin cash and the orange line is Bitcoin. So the more people that are hashing it, the more difficult it is and hence that would be the true Bitcoin. So that's Coinbase's argument. There are also other exchanges like the local exchange here, Anx Pro, they have decided to not support Sigrid2x. So there's definitely a lot of context over this issue. It's much deeper than just increasing block size and it's related to power and control over the network. I will definitely cover this in another video to make it more clear of what's happening and what, what, what and why people are doing these things. But the deadline is coming up. It's in 20 days, the Segrid2x debate. And of course, we're going to experience a lot of changes in the current environment because of this huge, huge event. So guys, what do you guys think about Segrid2x? Which side are you on? What do you support? And why do you support? I would love to hear your reasons and formulate a discussion topic and a video for that as well. Guys, thank you guys so much for watching this video. Remember to subscribe to this channel and click that notification bell on the side to get notified of new videos. Thank you guys so much for watching. See you next time.