SegWit2x’s Failure Confirms Bitcoin’s Status As Digital Gold

When 10,000 Bitcoins were used to buy two pizzas, the digital currency was a truly decentralized peer-to-peer payment network that operated across the globe instantly.

Today, the price has risen nearly a million-fold, but the network is no longer quite as functional as it was back in those days.

Bitcoin still struggles with its identity, as many would like it to revolutionize money, but they are equally happy sitting on hordes of it and watching it appreciate in value faster than perhaps any other asset in history.

A single dollar invested in Bitcoin on the original Bitcoin pizza day would be worth over $3 mln today.

While upgrades have been made to Bitcoin along the way, it looks like Bitcoin is becoming less of a payment network and is instead evolving into digital gold. The failure of SegWit2x, which aimed to decrease transaction costs and improve confirmation speed, failed for a number of reasons.

Some of them were good, and some were mere straw men. But at the end of the day, one thing is clear: there is clearly no rush to increase Bitcoin’s capacity.

No problem with digital gold

Those who once pledged their support of 2x have slowly turned their back on the fork. They’ve cited all sorts of reasons, primarily lack of consensus in the community. Of course, it was clear that there would be difficulties launching a hard fork just a few months after implementing the SegWit soft fork.

But the failure of the community and the Bitcoin development team to express any sense of urgency at fixing the scalability issue has had lasting effects. In fact, it has seriously skewed the way people now view Bitcoin.

Because of developers’ apathy when it comes to speeding transactions and lowering fees, the Bitcoin network has become much less useful as a payment network. The currency has now effectively evolved into an entirely new type of asset for investors to get excited about.

Progress has been made in advancing its investability with the announcement of futures, and the backing of a number of Wall Street investors, but when it has come to its retail adoption and bettering as a payment method things have been sluggish.

Digital-marketing agency Cooperatize.com’s Co-Founder Roger Wu puts it quite simply: […]

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