Daily Bitcoin News Update
Bitcoin prices took a giant leap past $10,000 in the trailing 24 hours. One interesting development transpired during this period that may have rejuvenated investor interest in BTC. The new Bitcoin update has finally been released.
We informed our readers a week ago about the impending launch of Bitcoin Core version 0.16.0 and explained why it improves Bitcoin’s utility as an alternative to fiat currency.
Simply put, it is the 16th major update in Bitcoin’s code that comes with a number of upgrades in its technology. One particular improvement is breathing a new life into Bitcoin’s dying platform.
We say “dying” because although Bitcoin has been pulling in new investors, new “users” have been remaining at bay because of BTC’s slow processing times and rising transaction fees.
Bitcoin users have been in dire straits. Imagine paying $30.00 in fees when making a purchase worth $100.00. That’s 30% of the total transaction value in fees. On top of that, Bitcoiners have been facing long wait times. Transactions have been taking days and, in some cases, even weeks.
The situation worsened through the bull market of December and early January when hordes of new buyers came in. While the Bitcoin platform saw gargantuan growth, transaction fees hit all-time highs. At one point, Bitcoiners found themselves paying as much as $55.00 per transaction. That’s insane!
The new update solves exactly these problems. Bitcoin Core version 0.16.0 comes with “SegWit” support—a technology integrated in Bitcoin’s new code that will allow for “scalability” and “malleability.”
Let me explain those two fancy terms.
Chart courtesy of TradingView.com
Scalability simply means that Bitcoin’s capacity to quickly process transactions will increase. This, in turn, will lead to a drop in fees.
Malleability means that Bitcoin’s code will now allow for a new layer to be added to its blockchain technology. The new layer developers are eventually looking to add is the “Lightning Network” (LN). LN will figuratively take Bitcoin’s technology light years ahead of the newer breed of blockchain technologies vying to replace Bitcoin.
In short, SegWit may be a game-changer for Bitcoin. As we pointed out earlier, SegWit adoption increases Bitcoin’s utility. With minimal fees and speedy transactions, Bitcoin once again becomes a viable medium of exchange for digital transactions. This may entice departing investors to change their minds, while also attracting prospective investors.
We’re wholeheartedly welcoming the Bitcoin Core update, which has luckily come sooner than we had expected. SegWit adoption may help put a floor under BTC prices and become the cornerstone for the next bull run. This is why we’re sticking with our original Bitcoin price prediction for 2018 with a BTC price target of $15,000.