Binary Option Scams in the Britian

Binary Option Scams in the UK

There has been something quite nasty that has been floating around recently that has been silently robbing Britons of millions of pounds of their hard earned money. It has been masquerading as an effective means by which fraudsters have stolen money from people who are the most vulnerable.

I am talking about binary options. This industry the has emanated from Israel and has spread to every corner of the world has used numerous sales tactics to pressure investors to invest in brokerages with these instruments. These were not even touted as trading products but as “investments” that could make people alot of money.

They have caught the attention of numerous law enforcement agencies as they have determined that these operations are sometimes used as a front to launder millions of dollars. They are also able to operate through a range of holding structures which means it is hard to locate who exactly they are and who controls them.

What are Binary Options

Binary Options were essentially an exotic option variant that were first created by investment banks as a way to profit from binary outcomes. Unlike with traditional options, the payoff is capped at the amount of the payout. With a standard American Option, there is an unlimited upside.

These were mostly traded by these investment bankers and hedge funds as an exotic instrument and were generally viewed as quite a complicated instrument to price. Hence, they were never really as popular in the institutional market as traditional options.

That was of course until they were picked up by the ex-online casino and scam forex brokers. They found that it was relatively quite easy to market the instrument to the retail market as they were quite gullible to what they were. Little did they know what they were getting themselves into.

Unregulated and No Oversight

When there is no oversight over operations such as this then there is a whole host of scope for nefarious activity. This is exactly what happened in the UK with these unregulated binary options brokers.

Most of the citizens in the UK did not know how to locate UK regulated option brokers and as such were duped into thinking that these brokers were legitimate or somehow allowed to offer their services to people in the UK.

Not only did these brokers make the clients think that they were offering them a safe investment but they also used fake names and claimed to be calling from London. They also claimed that they were all ex investment bankers and were senior brokers at the firm.

If this sounds like something out of the wolf of Wall Street then it most likely is. It was known that a number of these brokers used similar boiler room tactics to those individuals in movies like that. Not only did they lie about who they were but also about how Binary Options could be used.

They were told by all of these brokers that the options were risk free investments. They were told that they would never lose money and that they could make up to 500% per week. Some of them were also made to think that this was an investment that was safe enough to invest their retirements into.

The Range of Victims

There were so many victims of the scam that it would be hard to count. There were numerous pensioners who sold out of their retirement to invest in binary options. There were teachers, students and many others.

Someone they all seemed to think that the tactics that were used by the brokers were supposedly so convincing that they should trust them and invest this money.

Then, once they invested the money that was when things went sour. Not only did the returns not materialize as they may have hoped but they were told that the game was actively rigged against them. The platforms were designed to lose money and the brokers used dubious legal clauses to restrict the withdrawals of the clients.

The end result was a great deal of misery and alot of people who were left with a sour taste in their mouth as well as being a lot poorer. There were even reports that some had taken their lives as a result of the fraud.

Current Regulations

Binary Options are not regulated in the UK by the FCA but are rather regulated by the UK gaming commission. Hence, it is hard for consumers to request any sort of protections from the brokers who use these tactics.

Moreover, these brokers operate from abroad and not within the borders of the UK. This means that it is hard to prosecute them is they intend to sell their products to those who are located in the UK. The regulators have an uphill challenge.

However, this is something that may change as the FCA has already indicated their intent to regulate these options. They sent a RFP out to a number of people in the industry looking for information on the current state of affairs and how people should think about regulating these operations.

Hopefully when the FCA starts 2018 they will have rules in place around how these brokers can operate. Already we have seen some enforcement in the city of London as a number of smaller operators that have run bucket shops were raided. Things are indeed becoming a lot harder for the scammers to operate.

Trading Cryptcurrencies vs Binary Options

Although you do have some people who like to label cryptocurrencies as a “scam”, they have a fundamental misunderstanding of exactly what they decentralized currencies are. They are nothing compared to a vast industry with numerous unethical fraudsters who call up grandmothers in the UK and get them to lose.

Cryptocurrrencies are a phenomenon that are upheld by everyone. They are not controlled by a particular entity. They cannot be a scam. If this was indeed the case then everyone in the world would have to be in on the scam.

Trading Cryptocurrency vs. Options

This is the reason why Transforming Finance thinks that cryptocurrencies are the only way in which you can really participate in retail trading without having to fall for the unfortunate side effects of chasing wealth. The reason that people were able to fall for Binary Options is because they wanted money and were lured by promises of immense wealth. If you really want to trade cryptocurrency derivatives then there are a number of avenues to do that without trading a scam product.

With cryptocurrencies, this is not the case. They have proven the technology to the world as people have noticed just how much this it is likely to disrupt traditional finance. Hence, as an individual you are better off to invest in the underlying technology rather than investing to just make money. Focus on an idea and not the money you want to make.

Cryptocurrency derivatives

Could we See Cryptocurrency derivatives?

We already have well established cryptocurrency exchanges. These are essentially places like Coinbase and Bitstamp where people can go and exchange their Fiat money for cryptocurrencies. It works much like a traditional Fiat currency exchange but has no connection.

It is agreed that one of the major steps that can be implemented to drive cryptocurrencies towards mass adoption is to eliminate a lot of the friction that people will encounter when they attempt to enter the crypto markets. There is no simple exchange where they can enter coin positions on the traditional markets.

Enter Crypto Derivatives

This could eventually change thanks to an initiative by Nasdaq. Nasdaq is an exchange operator that has several of exchanges over the world for fiat money to buy assets. For example, they oversee the Copenhagen Stock exchange, the Helsinki stock exchange, the Stockholm stock exchange and the Nasdaq Vilnius OMX exchange.

Nasdaq Cryptocurrency Derivatives

Nasdaq is also particularly powerful in the Nordic countries where they list hundreds of companies on the Stockholm exchange. It is at this location that the company is trying to launch cryptocurrency linked derivatives.

Other Exchanges

On the Nasdaq Stockholm exchange, you have Bitcoin linked exchange traded notes (ETNs). These are issued by XBT Provider which is owned by Coinshares. These have been able to track the price of Bitcoin over the past two years quite effectively.

Prior to the purchase of XBT provider by coinshares, they offered a range of Euro linked cryptocurrency ETNs called Bitcoin Tracker One and Bitcoin Tracker Euro. They are derivatives which means that they derive their value from the price of the underlying assets. As the price of Bitcoin moves so should the value of these ETNs.

Bitcoin Exchange Traded Notes

This is about to change as CoinShares is about to use their expertise to launch an Ethereum linked ETN. This will also be on the Nasdaq Stockholm and will go by the name Ether Tracker one and Ether Tracker Euro.

Why The Long Wait

Many people are interested in hearing why it took over 2 years for CoinShares to take the step from a Bitcion ETN to that of an Ethereum based one. According to the co-founder of CoinShares, Ryan Radloff, this was because there had not been enough of the Ethereum core team going out and making the case to the traditional players in finance.

He did acknowledge the Ethereum developers and the Ethereum blockchain is one of the most sophisticated and strongest cryptocurrency initiative. However, there had not being enough of these smart people going out and making the case for Ethereum being listed on an exchange.

Hence, CoinShares decided that they wanted to pick up this task and make the Ethereum investment case. Obviously, listing the ETNs on the Nasdaq Stockholm will be a major game changer. It will allow investors who have exposure to Nasdaq to add Etheruem to that exposure.

Although the company does not solicit clients directly from the US, there are a number of businesses in the US, there are a number of Investment providers in the US who can use particular platforms in order to buy the ETNs.

Radloff also claimed that although he was long term bullish on adoption of Ethereum based investment instruments, he acknowledged the great deal of steps still to be taken before any sort of mass adoption can occur. He claimed that there had to be a great deal of work that was done with the clearing authorities and exchanges.

Ethereum Volatility

He also took the long term view that the Ethereum protocol itself may threaten the established exchanges. Smart contracts and decentralised applications are what could eventually be used with online share trading and other blockchain based exchanges.

There is also general concerns about how an exchange traded note can handle something that is generally outside of traditional finance. That is the hardforks or splits in the chains. There is currently an Ethereum hardfork that is taking place although many people think that it will be uneventful.

A New Asset Class

There is also great optimism in what a established crytpocurrency derivative market can do for the physical trade of these coins. They will be able to enhance liquidity, hedging options and allow for more diverse risk management strategies. This is something that many large institutions and investment houses will no doubt look favourably upon.

One of the major requirements in order for these derivatives to proliferate is how widely used cryptocurrencies are and whether they are able to maintain value throughout various market reactions.

Bitcoin Rallying into HardFork

Why is Bitcoin Price Rising into HardFork

Although Bitcoin is currently trading at an all time high, people are trying to understand why this is so.

There is indeed mass acceptance in the promise of Bitcoin and many people seem to want to get involved and purchase some coins before they head for new highs. However, this is quite a dangerous tactic especially when Bitcoin is about to head for a contentious fork in November.

Unlike to Ethereum hardfork, this has not been par for the course. It has been quite adversarial with many people who are wedded to their positions no matter what. You had two competing factions who actively viewed the others as trying to sabotage the network.

In terms of how contentious this split is, there are no previous examples to go by. If there is a split then you will have two competing technologies that try to kill the other chain through a number of methods.

Bitcoin Traders are Irrational

Bitcoin traders seem to be getting into Bitcoin because of the Fork and not in spite of it. They want to be able to hold the coins going into the fork. This is puzzling to some of the core developers who don’t know how people can invest so much money in an upgrade that even the developers themselves don’t know the effects of.

However, what seems to be driving these investors is the view that the previous hardfork in August was a success and resulted in two new coins. These were the original Bitcoin chain and Bitcoin cash. Bitcoin rallied in price and you had another coin that was also valuable.

Bitcoin Price is Rallying

This, to the traders is a great asset. Instead of being worried about the price of the Bitcoin after the fork, they were emboldened by the fact that the price of the combined holdings was worth much more than the single Bitcoin prior to the fork.

Harry Yeh, who is a managing partner at an Investment firm, Binary Financial, says that investors are only looking at the resulting impact of the two coins. Moreover, these are not newbies to the cryptocurrency scene but are well versed in the nature of these protocols.

Different Fork

Although these investors may be making interesting points about the upcoming fork, there are many who claim that these notions of value are misguided. This is because the fork of Bitcoin cash was considerably different from the one that is upcoming.

The Bitcoin cash fork was done so that those who were in favor of it could create a competing cryptocurrency with a 8mb block limit. The SegWit2X hardfork is quite different. It is a contentious split among two groups both of whom want to make their vision the actual Bitcoin.

Yet, this is where the traders are still interested. Although there is a risk that it could be an ugly split, traders are fans of more risk as it can increase their returns. This is what they are looking for prior to the split.

Bitcoin Cash HardFork in August

Yeh claimed that in traditional finance, people hold the view that if your asset splits into two, then they would be worthless. However, in the cryptocurrency world things just don’t work like that. When there is a split it can indeed create value.

He uses the example of the fork in Ethereum last summer where you had Ethereum branch off from the Ethereum classic. They both fell right after the split but seemed to rise after that and have now created a great amount of wealth for their holders.

This thinking of creation of value is the reason that many investors are betting that there could be an increase in value of Bitcoin and hence the reason that they are buying large amounts of it.

Just Bitcoin Optimism

Although there is the view that many investors are buying into the fork, others think that this could just be general optimism in the market about buying Bitcoin. These would just be the new investors who want to be able to join the action.

For example, Arthur Hayes who used to trade at Citigroup and now runs a large digital exchange claimed that there is a general feeling of market optimism as more and more people want to get involved in Bitcoin.

They saw the impact of the Chinese attempt to shutter exchanges and the subsequent recovery as proof of the robustness in Bitcoin. Hence, investors are not too concerned about the hardfork.

Should you Trade the Fork?

What could indeed be profitable going into the fork is trading on the volatility of Bitcoin. When you hold the coins, you will have to deal with the split and managing the two resulting coins. However, when you are trading the coins you can make money on pure movements in the asset.

If you are trading on an exchange like coinbase, you are actually holding the underlying coin into the split. However, when you are trading CFDs and futures on the coins then you can make the most of the volatility.

High Bitcoin Volatility

There are numerous CFD brokers who are regulated and will allow you to trade any amounts of cryptocurrency. IQ option is probably one of your best choices. You can read more about IQ Option in this review.

Once you have an account, you can trade the Bitcoin fork and the volatility. Due to the fact that they also have altcoins, you can trade the Etheruem hardfork this Monday as well.

All eyes on the Miner Support

One of the most important metrics as to whether there will indeed be a hardfork is the amount of miner support for SegWit2X. As more miners stop signaling their support, the likelihood of a fork decreases.

Already, the support has fallen quite a bit this week with some mining pools pulling out. If there is no fork, this could also be positive for Bitcoin as it will mean more certainty and more belief that there is only one real Bitcoin.

Ethereum HardFork

People Believe Ethereum Won’t Split

There is indeed a lot of confidence in the view that the Ethereum blockchain is unlikely to split in the next hardfork on Monday.

For those who may not know, Ethereum is about to update its protocol with a range of changes that could improve the secure, cheaper and faster. These updates are part of the Byzantium hardfork that will happen at block 4,370,000.

Usually, when there is a hardfork, there is usually some concern as this could lead to a chain split. People are generally worried with this as these two competing chains then have different coins which creates confusion.

Nothing to Worry About

Given that the price of Ether seems to be rising and rising, people appear to be unfazed by the upcoming fork. Indeed, it seems as if they don’t think that the fork will lead to a chain split. This seems to also be reiterated by some of the Ethereum developers themselves.

Alex Van, who is one of the Ethereum developers said that he expects nothing to happen. He also brought up all of the previous hardforks where nothing appeared to happen either.

The only time that there was ever a contention in the hardfork occurred because of an emergency fork in the code last year. This was done when the DAO was hacked and a considerable amount of Ether was stolen.

Some of the miners continued mining on the original chain. This created a competing cryptocurrency called Ethereum classic. This still exists today although is worth much less than Ethereum proper.

Why the Optimism?

Some of the many reasons that people are optimistic about this update is because it has been in the works for quite some time and has been planned long in advance. It forms part of the Ethereum Metropolis roadmap that was laid out in 2015 as a means to scale the network.

The fork was also tested effectively on the Ethereum Rosten test network. There were no problems as everything moved forward as planned. Although there were some spam attacks that forced some developers onto their private networks. It largely worked effectively.

One of the Ethereum Improvement protocols that many people are interested to see implemented was the use of Zk-snarks. This would allow for Ethereum holders to send coins using technology that is in use with Z Cash.

Explanation ZK-snarks

Zk-snarks are zero knowledge proofs and can hide information about the transaction from the rest of the public blockchain. There is no doubt that this could be of benefit to some of Ethereum holders.

Another initiative was a decrease in the difficulty that is required to mine Ethereum as well as a drop in the reward for mining the blocks. This would have the benefit of increasing the transaction speed as well as reducing the cost.

Also, this is seen as the first move towards the implementation of Ethereum proof of stake mining. Officially called the Casper POS protocol, this will help make mining less centralised.

Some Opposition

This is not to say that there are no dissenting voices. There are some participants such as miners who are not in favour for reducing the block reward. One can of course understand why they would have taken this position.

The protest against this move is from a movement called “Etherite”. They want to implement all of the proposed changes from the Byzantium hardfork but keep the mining rewards the same. They believe this change could turn the miners off of the new Ethereum chain.

One of the proponents of this, Dylan Young, is of the view that this reduction is not known by most of the miners and they merely take what is being given to them by the Ethereum developers.

This is indeed the sentiments that were echoed by a representative of a mining pool called Nanopool. He stated that the Block reward was now a secondary issue and that most of the control was in the hands of the Ethereum foundation.

Resistance from Some Miners

If anyone was worried about the prospect that Etherite may gain momentum and threaten the Byzantium hardfork, they should rest easy. As is currently, there is only one forum post on Reddit and one Github contributor.

It seems though, that many miners have realised that although there is reduction in the block reward from 5 ETH to 2 ETH, the overall number of blocks that will be propagated will increase substantially with the difficulty reduction. Hence, the miners that continue to mine both chains may discover that they can make the same amount of money on both of the chains.

There is also the point that was raised about the difficulty bomb that is built into the Ethereum protocol. With this, the Ethereum developers can slow down the rate of Ethereum blocks that are created on its blockchain. This will convince users to move over to a new chain.

Conclusion

Unlike the contentious debate that there was over the Bitcoin hardfork, the Ethereum Byzantium hardfork was so far pretty orderly and well planned. Developers, users and even miners appear to be in agreement and are falling well in line.

This hardfork was a result of lots of planning and cohesion in the community. It is no doubt a great vote of confidence in the Etheruem project. We are therefore likely to see the price of Ether reaching new highs next week.

ICO Due Diligence

What to look for when investing in an ICO

ICO, initial coin offering and other forms of cryptocurrency are turning into the main go to for investors worldwide as the transactions are so unregulated and that people can bypass credibility checks. But the main reason is that ICO in the market is increasing and shows no sign of dropping, making ICO a better investment than commodities or stocks.

But before you journey into initial coin offerings, make sure you understand exactly what it is. Just like Bitcoin and cryptocurrency, ICO is completely digital and although companies sell them to investors, you can never actually take ownership of your coins, (tokens).

What are ICOs

Companies are using this method of selling ICOs as a form of crowdfunding to build and grow their business. As the company’s value increases and the price of stock also gain more value so do your tokens. Meaning that your ICOs will increase in price resulting in you making a profit.

ICO Process Explained

However, it’s very important to do research and examine all aspects of a company before buying ICOs, as this is still a form of investing. Firstly you should always know who the company deals with, who are their partners, what are their future plans and what network and platforms do they use. It’s extremely important that you know where you stand with the company when it comes to selling your tokens back to the company for the profit that you have made.

This is particularly important today given the large degree of celebrities who are promoting ICOs. People could just see that someone famous has promoted a ICO company and would then just assume that this company should be invested in. You need proper due diligence.

Floyd Mayweather Promoting an ICO

Do a security check on the company that you’re about to buy from. Make sure they are registered and all legal measures are in place. Remember that since you can’t take ownership of ICOs if anything goes wrong and you lose your initial investment it’s completely gone.

Find out about the companies SSL certificate by opening the company’s website in the browser and look for a green padlock icon in the left part of the address bar. If you can’t see an icon or it’s red then avoid the company. If you do see a green icon, be sure to just double check the company’s legal standings as an extra precaution.

Have a Test Run

What many investors advice is that when you find the right opportunity and decide to invest and buy ICOs from the company, do a test buy. This means that you first buy a small number of coins to see if your investment will be at risk. If you buy a few coins and there is hacking or scams then you might lose a small amount of your money, but your large investment sum will still be safe. Think of this as a trial run for buying ICOs.

Just as stock is an investment that carries risks, so do ICOs. You can lose your money in the blink of an eye, or you can make an incredible amount of profit. No one can predict the exact outcome of any investment so if you don’t fear to lose and like the chance to reap a potential reward in the near future then investing in ICO is the ideal opportunity for you.

Celebrities and Their ICOs

Celebrities and ICO promotions

As the world is being introduced to ICO, celebrities, and other spotlight attracting people can’t help but climb aboard this opportunity train. Crypto Media Group has even been approaching celebrities to help and promote ICOs. This is a great strategy as we all know that celebrities can’t blow their noses without the majority of the world knowing. So many people that would benefit and be interested in ICOs will now also be introduced to it thanks to them following their favorite celebrity.

As social media is the leading way in marketing, companies look to celebrities to promote and drive publicity to ICOs as they have over thousands of followers and fans, making this ICO marketing strategy foolproof.

Leveraging Star Power

Floyd Mayweather was amongst the first renown names to be approached by the Crypto Media Group. Floyd Mayweather was seen tweeting and promoting the public about the upcoming Hubii ICO during his Floyd vs Conor campaign.

Logan Schauer, the CEO of Crypto Media Group even stated that “the company seeks to leverage social media influencers to promote ICOs to mainstream audiences outside of the core cryptocurrency community.” This will present the opportunities behind ICO to a wider arrange of audiences.

All through other celebrities such as Jamie Foxx and Paris Hilton are also promoting ICOs, a number of investors are against this marketing strategy. These investors believe that celebrities promoting ICOs will eventually cause a flood in the market and result in a “bubble”. Regulators would then need to be brought in to stabilize this situation.

There is also fear that all of these ICOs are now raising funds from a number of inexperienced investors as the price of Bitcoin is at all time highs. This is due to the fact that the Bitcion November hard fork seems unlikely now.

Bubble Concerns?

Investors also believe that a great number people investing in ICOs because of celebrities telling them to do so will lose a lot of their money as they would be investing because of a current trend and not of fundamental or technical reasons. Andreas Antonopoulos, an early bitcoin investor even said recently, “The worst reason to make an investment is a celebrity endorsement. Unfortunately, this tactic works, and that’s why they’re doing it.”

Although many investors are against celebrities promoting ICO, it doesn’t stop this marketing strategy as music producer DJ Khaled is the latest celebrity to join this movement. CoinDesk informs the public that in 2017 alone ICOs have raised nearly $2 billion. We don’t know how much of this was raised thanks to celebrity endorsement, we just know that $2 billion is a phenomenal number to have been raised this far.

The question that is being asked is how many of these celebrities are actually into ICOs or are just being paid to promote it? General partner at Haystack Fund, Semil Shah said that this type of “influencer marketing” isn’t illegal, but it might attract the SEC’s attention later on. (The U.S. Securities and Exchange Commission)

Why Craig is not Satoshi

Why Craig Wright is not Satoshi Nakamoto

Craig Wright, an entrepreneur from Australia is having everyone believe that he is the author of Bitcoin’s whitepaper and protocol, Satoshi Nakamoto. Although a great number of people believe that Dr. Wright is not Satoshi, some people including Bitcoin partners and investors still claim that Craig Wright and Satoshi Nakamoto is the same person. With the news hitting the public that Craig Wright might be Satoshi Nakamoto it stirred up some waves within the Bitcoin community.

Gavin Andersen was one of the individuals who believed that Craig is Satoshi after all. The core Bitcoin developer, Gavin said that after a convincing email providing proof, he had no choice but to fly to London and meet Craig Wright in person. Gavin informed the community that after a while getting to know Craig he was certain that he is without a doubt Satoshi.

Ian Grigg, another Australian entrepreneur, and cryptographer is also 100 percent certain that Craig is Satoshi. With big names in the Bitcoin industry supporting Craig’s statement, the majority of people still say that they won’t be fooled until they see legitimate proof, which Craig Wright has refused to share with the public. All though there are some articles and interviews backing Craig’s statement, sceptics and journalists say that nothing yet can prove Craig Wright’s statement to be true.

He Cannot Prove it

Gavin Wright also chooses to whom he reveals evidence as to why he claims to be Satoshi, and this has led to people believing that Gavin’s audience lacks the expertise to see through his illusion. Back in 2015 Gavin Wright even tried to prove he is Satoshi by signing in with the same log in key which Satoshi uses, however, expert Greg Maxwell did some digging and found out that the keys have been tampered with beforehand.

Recently Gavin tried again to prove he is Nakamoto by using an old key that was used by Satoshi himself, by saying that the key used is newly generated. The login was valid and Gavin was granted access, unfortunately, this showed everyone that Gavin used an old existing key instead of using one of Satoshi’s private and unique keys. If Gavin had used a private key it would have been proof that he might, in fact, be Satoshi Nakamoto.

Craig Wright Fraud

By signing in with Satoshi Nakamoto’s signatures and information experts have stated that Gavin Wright is deceiving the Bitcoin community as all of his digital scripts lack a proper Satoshi signature. Gavin Wright was also asked that if he is Satoshi then transferring coins between Satoshi’s accounts would be a piece of cake, and once again Gavin refused to do so.

“Think of Gavin Wright busy driving a car, even though Gavin is driving the car there is no indication that he owns it until he shows the proper paperwork which he refuses to do.”

Bitcoin enthusiasts, investors and a lot of major cryptography experts said that they will not believe Gavin Wright is Satoshi Nakamoto until real proof is presented which at this stage looks very unlikely to happen.

Bitcoin Hardfork November

What will happen with the Bitcoin Fork in November

Investors in Bitcoin are on the edge of their seats to see what November holds for Bitcoin trade. The events in the coming month will certainly have a big impact on the market. November’s big event will be the upgrade of Bitcoin blockchain’s network.

The whole process will result in the current 1MB block size increasing to 2MB and this will fall under SegWit2x. The goal behind this action will be to basically increase the computational capacity of the blockchain network.

The Role of Miners

Since Bitcoin miners play such a big part in this movement, a lot of companies joined the miner’s side in the growing of the block chain network. This can possibly lead to Bitcoin splitting into two networks. If the split does happen then a third version of the world’s largest cryptocurrency will be created.

Eric Lombrozo, Bitcoin’s core developer stated that “even though no core developers signed on, a number of them have been working to make sure it’s not a disaster anyway. At the same time, he believes that the companies who teamed up with the miners but didn’t manage to get any core developers on board allied with the wrong group.”

Bitcoin Core Developers

Eric Lombrozo also sided with the other core developers against the increasing of the blockchain size as they believe it will result in a number of miners having more authority over the network.

Investors are also concerned about the whole SegWit2x movement as investors that’s new to Bitcoin do stand a chance of losing money due to them assigning the wrong value to their investments.

Conflicting Opinions

The whole Fork happening in November is a result of both miners and developers having different visions for the ever-growing cryptocurrency market. The Bitcoin market is currently so over populated and this is effecting the price of Bitcoin, and too many parties have their own thoughts and opinions on how to deal with the problem. One solution is as mentioned the 1MB to 2MB upgrade.

Bitcoin Dissenting Opinions

Having three versions of cryptocurrency in the market investors are saying that this is paving the way for competitors to surface as well and advantage of the shared capital in the market.

But to avoid the split in November, 92 percent of the miners need to side with SegWit2x and their 1MB to 2MB upgrade but the chances of that happening are incredibly slim. SegWit2x did, however, receive 93 percent of the votes back in July, but it appears that both miners and developers are withdrawing their vote in recent days. Wang Chun, co-owner and chief administrator of F2Pool even said that he is 100 percent sure that the split will happen and investors should start preparing for it.

Next Steps in Fork

However, since it’s likely that come November the world will have three main Bitcoin versions, only one will prosper and succeed in the market. As majority will certainly side to the main version, the other two will fall away until more competitors emerge and cut their growth even further. Currently, it’s still uncertain as to which version of Bitcoin will be the actual Bitcoin version, we can only sit back and wait and see.

It is expected that the cryptocurrency who can handle the most people on the network and has the best speed will ultimately prevail above the rest as one of the main reasons that the split is happening is because of too many people being active in the Bitcoin market, resulting in slower speeds for the network.

Peter Todd, one of the core developers said that the split in November can be bigger than the past splits so investors are warned to plan ahead.