SegWit activation: What should I consider?

There is currently a certain tension and uncertainty in the Bitcoin community about how the network will decide about Bitcoin in the coming weeks.

The community is heading straight for a significant change in the Bitcoin system and at least a temporary solution to the Bitcoin scaling debate. SegWit2x and SegWit have long since lost the Emergent Consensus. According to current CoinDance figures, SegWit2x stands at 83.9%, SegWit at 45.6% and Emergent Consensus currently receives support of 39.3%.

Both proposals, SegWit (BIP141) and SegWit2x, aim at an activation of SegWit in the Bitcoin network. Tense mood. However, the effects of the SegWit UASF (User Activated Softfork) on August 1 could be more far-reaching than “just” increasing the efficiency of the Bitcoin network.

When the UASF comes into force on August 1, the Bitcoin trader network could be divided

From this date, most node operators will activate the SegWit UASF and thus reject all blocks that do not signal SegWit support. So if the majority of miners do not signal SegWit support by BIP148 by August 1st, the Bitcoin trader blockchain would split. Then there would be two different Bitcoins:

The good news: Each bit coin would be copied to both block chains in case of a splitting of the block chain. If you are in possession of the private keys, you first have both coins. X Coins A and X Coins B.

The bad news: Such a split can become a problem for users, depending on how the individual online exchanges and wallet providers have prepared for such a possible scenario. So you should also prepare yourself.

What does a crypto trader need to keep in mind?

Basically, as in any other case, crypto trader should be in possession of the private keys. With the keys you always have full control over your Bitcoins. A Ledger hardware wallet, for example, would be a way to get your private keys, which are then stored on the hardware wallet and not on any online exchange. Who has his coins on an online wallet is not in possession of his private keys and therefore does not have full control! Since the hardware wallets are currently heavily poisoned due to the high demand, crypto trader can also reach for a paper wallet.

In addition, you should only invest as much money as you can cope with losing, and this applies to any investments that are risky.

And very important: keep calm. Even if it currently seems rather unlikely that the network will be split directly by means of a hard fork, it represents a possible scenario.

By and large, the activation of SegWit can be considered a major milestone. Even if opinions differ here, there is some movement, because the current transaction fees and transaction times must not become a permanent state.