Taproot Bitcoin is an important transformation for Bitcoin, as the first crypto asset and with the largest market cap.
Bitcoin is the first crypto asset created by anonymous Satoshi Nakamoto. Unfortunately, despite being the most trusted crypto asset, Bitcoin still has some drawbacks.
To overcome this lack of Bitcoin, there are several proposals from Bitcoin. For example, such as halving day which occurs every 4 years. In addition, this year, the smart contract transformation called Taproot is also an important transformation.
Let’s look at the explanation below.
Understanding Bitcoin Taproot
Taproot Bitcoin, the first upgrade to a crypto asset in four years, was recently approved by miners around the world. Later, it will start in November 2021. The upgrade has received consensus from the majority of stakeholders.
Many experts or analysts believe this could be a revolutionary moment for the world’s largest cryptocurrency. Because of the support from miners in receiving and bringing in these upgrades it will be great.
This will make the bitcoins that make smart contracts run efficiently and cheaply. Until now, smart contracts were usually run on the Ethereum network due to their higher efficiency.
However, with the improvement of Taproot, Bitcoin has the potential to improve itself and integrate with mainstream finance. In addition, bitcoin is a public blockchain, and anyone can monitor transactions that occur on the network, which is a concern for many.
Taproot Bitcoin will also give Bitcoin some potential. Because for the first time in history, the smart contract feature was implemented on Bitcoin. Because so far this has only happened on Ethereum.
Experts believe this could be a revolutionary moment for cryptocurrencies as the support from miners in accepting this upgrade is overwhelming.
Later, there will be many new ecosystems of Bitcoin management. Taproot is also expected to bring even better privacy and transparency.
Will Taproot Raise Bitcoin Price Again to High Levels?
Taproot is the reason for the rising price of Bitcoin this week, breaking through the highest price in the last month of IDR 570 million. Currently, Bitcoin is still showing a sideways trend from the highest price of IDR 950 million.
If the implementation of Taproot goes well, it is possible that Bitcoin will reach or pass its highest price in history. Because technology upgrades are the most frequent reason for increasing the price of Bitcoin.
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