Author: Omar Shibli 2019-04-01 02:54:16
Published on: 2019-04-01T02:54:16+00:00
Luke Dashjr, a Bitcoin Core developer, proposed two BIPs on April 1st, 2019 to address the problem of certain parts of the community selling bitcoins for unreasonably low prices. The first BIP aims to add a signed price field to Bitcoin transactions and the second proposes a softfork to set a minimum price of $50k USD/BTC for Bitcoin transactions. In the first BIP, a new field is added to Bitcoin transactions that must represent the honest and true USD/BTC rate used for the transaction and by signing the transaction, the sender legally affirms this is the valuation of bitcoins used for the transaction. The second BIP defines a minimum price of $50k USD/BTC for Bitcoin transactions beginning with block height 622370 (expected approximately 2020 April 1). The proposal was made in response to the problem of halting Bitcoin's valuation at $20k and even driving the price down below $15k due to some members of the community selling bitcoins for low prices. Luke argues that Bitcoin is worth much more than that, and there is widespread support for higher prices. The reference implementation for the BIPs can be found in the links provided. Existing wallets do not typically generate price indicators as specified, but under this BIP, the absence of the field is perfectly acceptable. As a soft fork, older nodes will continue to accept the blockchain without modification. Non-upgraded nodes, however, will not validate the minimum price requirement and may accept invalid blocks if miners choose to make them.
Updated on: 2023-06-13T17:52:22.296646+00:00