Is BIP 91 the Reason for the Recovery of Bitcoin and Altcoin Prices?
BTC/USD chart from Bitfinex for the last day shows a significant recovery - is it due to BIP 91 signalling? - Chart Source: BitcoinWisdom.
Introduction
Just a quick post today as I wasn't planning on posting, however I thought this issue was interesting and important enough to share.
A couple of days ago I spoke about how there was uncertainty over bitcoin due to the possibility of chain splitting if BIP 148 activated.
This may have combined with other factors to create the fall in bitcoin price.
We have seen a partial recovery over the last few days and this may be at least partly due to increasing support for BIP 91.
What is BIP 91?
BIP stands for Bitcoin Improvement Proposal and is the title (along with a number) given to proposed changes to the bitcoin blockchain.
As I understand it BIP 91 came about as part of the Segwit 2X proposal.
It is a an addition/modification to BIP 141 (the original Segwit proposal) that reduces the previous 95% miner support requirement to 80% and also reduces the period needed to signal support from 2 weeks to 56 hours.
In addition it will also prevent BIP 148 from activating and greatly reduce the risk of a chain split.
(BIP 148 is the very controversial user activated soft fork (UASF) that could potentially result in a split in the bitcoin blockchain and lead to people losing money).
Frankly the specific technical details of how BIP91 works are beyond my understanding, however there is a Coindesk article which goes into some detail about it here.
BIP 91 already has 63% support (in the last 144 blocks) out of the 80% needed according to Coindance.
(NB to activate it needs 80% miner support over 336 blocks).
If it continues to gain support over the next few days we could actually see a swifter resolution to the current crisis and a faster return to the more positive and bullish sentiment we had prior to the recent price falls.
What do you think about BIP 91? Is it responsible for the recent market recovery? Will it pass?
Let me know in the comments.
Thank you for reading
I'm still sceptical about this uphill for now. I think people will still be afraid and before the 1st of August we will see a drop again. For sure we see one this weekend because every friday/saturday we have all red.
Yes hopefully it doesn't go down again but that seems to have been the pattern.
Yeah indeed. But I really think it will go down 1 more time and go pretty low. And after the 1st of August everything will go great again. Bitcoin and Altcoins will reach all time highs after that. In December I think Bitcoin will be worth $4000 :D
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I dont think there will be a drop since the majority from the community is supporting segwit and the possibility of the chain split has been reduced too much. It is the reason the price has recovered and it will stay the same until august 1. After this it will increase more than ever.
Good read @thecryptofiend, got me to find another article that states that "Miner Support for SegWit2x Jumps to 90% Overnight". Hope that Bitcoin will finally get consensus and will scale accordingly.
Yes I hope.
Time to fly 4000 here we come!
Great post.
Upvoted!
Thank you:)
I don't really know a lot about all of this BIP :D But I'm confident that everyone will do what it must be done for the good of bitcoin's and cryptocurrencies' world. :)
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I think there is significant confidence that one of two things is going to happen.
The NY agreement, SegWit2x looks like it will be followed by a significant part of the hashrate. This will ensure there is no chain split from the UASF nodes.
There is a side that has made their intentions clear to not accept segwit and hardfork blocksize increase. I believe they will hardfork. No mater what. They will rebrand as Bitcoin Cash if they need to. Several exchanges are supporting.
SegWit is not all roses, there are some legitimate concerns with putting it on Bitcoin. It has nothing to do with the needed fixes it makes, rather how it makes them. See my post below:
https://steemit.com/bitcoin/@kyle.anderson/fork-christ-s-sake-bitcoin-is-going-to-fork-is-segwit-bitcoin-whose-side-should-i-be-on
Wouldn't BIP 91 prevent a fork?
A fork is what is going to happen no matter what.
The BIP 91 is going to prevent a chainsplit from the sorta conflicting segwit activation methods. And hopefully solidify the 2x part.
Through Bitcoin ABC, Bitmain, ViaBTC and several others have made it pretty cleat that they do not want segwit transactions and want to scale on chain. They will hardfork. - they will chain split away from whatever BIP 91 chain does.
OK.
what will that do to the market since every currency is linked to bitcoin? Do you think we can expect another crash?
There will be volatility.
Ohh yeah
Hashpower is going to have to make a choice, even if it is an easy one.
It is but if only a small number of people go against it does it still count? I also wonder if the naysayers will have the nerve to actually split away and go off on their own separate chain. We will have to see.
Exactly, it might be an easy choice.
I hope they do.
Check out my post, SegWit can be dangerous. It might be a willing compromise but there are still very valid arguments against SegWit. Expecially with it being advertised as a blocksize increase.
Yes in fact I have heard of some of these issues before in e.g in relation to validation.I hadn't even heard of the 51% attack issue that you mention. I don't think there is a perfect solution.
There are plenty of other ways to fix malleability problems. This is entirely a problem with the core's code.
The solution is a hardfork blocksize increase.
We will never get agreement to that though or so it seems.
Of course we are not knowing all the history.
https://steemit.com/bitcoin/@lanzate/bitcoin-segwit-improvement-or-conspiracy
It's just a head fake... many are going to pull back into usd until aug 1st. More downfall is expected in two weeks, get your money ready people to pick up these at bargain prices 🤑
ready for STEEM dips 😈
Locked and Loaded :)
It will be interesting to see.
it will be a bumpy ride but it will be going back up very soon
I think recovery started right after Bitmain tweeted support for segwit2x. I think played a big role, because there was uncertainty in their position. Now it seems road will be smooth.
Only concern I see is whether there will be code error/bugs. If that goes well on that level, crises has been avoided and I hope we will see $3000+ btc soon.
Right - I wasn't aware of that.
I think the way bitcoin recovered from the recent crash, it has further compelled investors to invest in bitcoin which will give it an opportunity to set a new record price soon.
I am not sure about the part where 80% signalling needs to happen out of the last 144 blocks. For BIP91 to lock in 80% of 336 = 269 blocks need to signal before August 1st, 2017. As of now, 141 blocks are signalling. Here's hoping we reach the figure of 269 in the next two days. That delays fears of a chain split for another couple of months.
I never said that. Coindance has that as an indicator to show short term support which is what is confusing. I will add a note to make it clearer.