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Just a few hours before the SegWit2x hard-fork was called off, our CEO, Michael Hudson, sat down for an interview with Financial Fox’s Stefania Barbaglio to discuss this critical time and what he sees for the future of Bitcoin.
As we know, the hard-fork did not go ahead as planned due to lack of unanimous support and the risks involved with initiating such without the necessary backing for a successful change. Still, as you will hear in the video, Michael dismissed the need for the hard-fork in the first place, and his outlook for Bitcoin is valid, irrespective of the recent developments.
Here are the highlights of their conversation.
The planned SegWit2x hard-fork was a supposed compromise between two camps when there was still only one Bitcoin chain. The one camp supported SegWit implementation, to enable the development of off-chain applications intended to support scaling the network. On the other hand, you had those who advocated the use of bigger block sizes to scale Bitcoin on-chain. Since the signing of the New York Agreement, however, Bitcoin Cash has been created. Bitcoin Cash offers an 8MB block, with aggressive plans to scale that up over time.
There is no fundamental reason why this hard-fork should proceed. - Michael Hudson, CEO, Bitstocks
Essentially, the needs of both camps have already been met. Those who are proponents of bigger block size, could be using Bitcoin Cash, and leaving those favouring SegWit to work on the legacy chain.
When asked about a potential bitcoin price over the next 6 months, Michael has a bullish view.
In 6 months I think it is very realistic to have a bitcoin price between $11,000 to $13,000. - Michael Hudson, CEO, Bitstocks
Michael supports his forecast with the fact that much of the upward trajectory we are seeing at this point is the increased flow of institutional money into Bitcoin.
The industry is pretty divided on whether Bitcoin represents a positive investment, with the potential of high-returns, or whether it is in a bubble. Stefania questioned Michael with regards to mass adoption and broader consumption.
Michael outlines that this is probably the most crucial question to ask ourselves these days. And while he does not believe that bitcoin is in a bubble, he cautions that it depends on which version of Bitcoin you are looking at.
With an unemotional perspective, and concentrating purely on the fundamentals, you will see that Bitcoin as it stands is a network that will charge you $5 for a transaction of any size, even one as low as $20. As a result we have seen a stagnation of projects that are built on top of the Bitcoin blockchain as it becomes unfeasible.
The utility of the main legacy chain of Bitcoin today, is for the most part, is speculation. - Michael Hudson, CEO, Bitstocks
Michael goes on to explain why the speculation is not misguided, and reveals the value of hashing power in terms of network security. However, he does not believe that Bitcoin - the legacy chain - will be the chain to usher in a new age. That, he believes, will be the work of Bitcoin Cash.
Other topics covered include:
Watch the video for more insights into the current and future world of Bitcoin!