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Segregated Witness was activated on the 24th of August, 2017, and the price of Bitcoin grew up to 49,75% following its activation. SegWit essentially prevented non-intentional transaction malleability and increased the block size limit by pulling signature data from Bitcoin transactions. On the 21st of July of 2017, Bitcoin was trading at $2,748, which was up 49.75% when compared to the 14th of July of 2017, where it traded for $1,835.
Analyzing the future of Bitcoin through Taproot
The main benefits of Taproot include an increased level of security within the types of transactions. It will allow for complex transactions, such as ones requiring multiple signatures or those with delayed-release. It will also allow for lower fees, as the data size of complex Bitcoin transactions would be reduced, and we’d get lower transaction costs.
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Furthermore, we’ll see a much higher level of flexibility due to the fact that it will enhance smart contract functionality, and it will receive a lightning boost, as it will make transactions on the lightning network cheaper, a lot more flexible, and most importantly, private.
Does this mean you should buy Bitcoin now?
Bitcoin has certainly seen its fair share of ups and downs in recent weeks and the price of one BTC is hovering at around $56,000.
One of the more recent catalysts that lifted BTC price higher was attributed to Tesla’s announcement it will accept Bitcoin as payment for its cars. This gave more reason to believe Bitcoin can serve as a means of payment at major corporations. That being said, through the last big upgrade, we saw a rise in the price of up to 49.75%, and through real-world acceptance, we saw it grow even further, up to $60,000 for the very first time.
Through this upgrade, we should expect it to rise in price yet again, and we should see it rise to $60,000 again as its next price target, however, on the flip side, if it ends up dropping under $50,000 again, it’s a hard “sell” signal as it implies investors had no interest in buying at a key support level.
The Impact Summarized
We can see potential growth in Bitcoin, but not through Taproot alone, but through the fact that through this update, a lot more companies will potentially see it as a viable option for making transactions, which will lead to acceptance by the general populous, and this popularity will make its price rise as a result.
Investors should buy bitcoin now due to the fact that the update isn’t live yet, and its release will surely spark social media attention, popularity throughout large corporations. It may also create a pathway towards increased adoption by the general populous due to the various improvements Taproot brings to the blockchain.