NewsExpress advert Yudala banner
Bitcoin’s value crashes; loses nearly $2 billion in three days

By News Express on 18/03/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 1,388


Just under $2 billion has been wiped off the value of bitcoin (Exchange: BTC=-USS) in under three days as a fight over the future of the technology underpinning the cryptocurrency wages on.

Bitcoin was trading at around $1,142.60 at time of publication, giving it a market cap of $18.53 billion, according to CoinDesk data. This is down from highs of $1,255.32 on Tuesday, which valued the total bitcoin pile at $20.36 billion.

Meanwhile, rival cryptocurrency ether is up over 84 percent from highs of $29.87 on Tuesday to trading at all-time highs of around $55 on Friday, according to Coinmarketcap.com. The market captilisation shot from $2.68 billion to $4.95 billion. It is the only other cryptocurrency to be valued at over $1 billion.

Much of the inverse price movement stems from traders’ worries over the future of bitcoin and the underpinning blockchain technology.

What’s happened?

To understand the issue, it’s key to look at how bitcoin transactions are processed. Transactions by users are gathered into “blocks” which is turned into a complex math solution. So-called miners, using high-powered computers work these solutions out to determine if the transaction is possible. Once other miners also check the puzzle is correct, the transactions are approved and the miners are rewarded in bitcoin.

But there’s a massive backlog of transactions in bitcoin that are waiting to happen. The number of outstanding transactions is up more than four times from just six months ago, according to data from bitcoin wallet Blockchain. This is bad for a system that has promised fast and cheaper transactions than the traditional financial system.

Because of this, a group called Bitcoin Unlimited has emerged. This faction is suggesting increasing the size of the block which would allow more transactions to be bunched together and processed. Major bitcoin industry players including Roger Ver have backed the plan. But some developers in the community suggest that increasing the block size could be unsafe.

What’s this about a fork?

The real concern is if Bitcoin Unlimited gains major support, it could have an impact on the underlying blockchain technology that supports bitcoin. Bitcoin Unlimited has about an 11 percent market share of all the “nodes” in existence. Nodes are the backbone of bitcoin’s infrastructure and refer to those mining the transactions as well as those tracking the movement of bitcoin to make sure it is all working correctly.

Nodes can run Blockchain Unlimited software which would signal their support for increasing the block size. If 50 percent of bitcoin miners adopted Bitcoin Unlimited, there would then be two major blockchains and a “fork” would be created made of Bitcoin Core, the current main software behind the infrastructure, and Bitcoin Unlimited.

Both blockchains would continue to run as long as there are nodes running them. But there would then be essentially two different coins – Bitcoin and Bitcoin Unlimited.

So why has the price fallen?

And this is why bitcoin has seen sharp declines in price, while other cryptocurrencies like ether have gained support.

“Bitcoin traders may have wanted to offset some of their exposure should a fork occur or the scaling deadlock continue, and ether seems to be the most promising alternative. Bitcoin-ether volumes have surged since and are currently rivaling bitcoin-fiat currency trading liquidity,” Aurélien Menant, founder and CEO of Gatecoin, a regulated blockchain assets exchange based in Hong Kong, told CNBC by email on Friday.

•Sourced from Yahoo.

 

 

 

Source News Express

Posted 18/03/2017 9:34:54 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

 

You may also like...
SSS harassment of Ezekwesili a slap on the...

Tearing of membership card: Obasanjo’s action strange, says...

America escapes nuclear bomb attack

New group emerges for promotion of Yoruba interests...

Edo plans Investment Summit to boost state’s economy...

Emir Sanusi, others sue for peace

Support Umahi, Ekweremadu urges Ebonyians

Fresh crisis hits South West PDP over national...

Lagos Council Polls: PDP replies Tinubu

ASUU strike unnecessary burden — Catholic Bishops

Why Fulanis are killing Southern Kaduna Christians: Kaduna...

PDP ‘wahala’: More trouble for Oyinlola (ex-Lagos and...

 

Latest News Jesus’s burial site shut in protest Church with 100 sex slaves busted in South Africa My wife cries daily: Robert Mugabe Speeding vehicle kills 9 schoolchildren Peace Mass Transit Chairman constructs N400m roads in Enugu Star athlete arrested for stealing car at Winter Olympics Yobe Attack: Parents form association, demand rescue of 105 abducted schoolgirls Buhari challenges varsities on cutting-edge research, as UNIABUJA graduates 3,160 Third Class, 180 Pass NSCDC decries activities of oil theft syndicates in Bayelsa Roosdorp extracts commitment from Fayemi, Malami, others Warren Buffett shares investment lesson RELEASED: Names of the over 100 Dapchi school girls abducted by Boko Haram

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (327,036 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (319,185 views) Shameless Genevieve Nnaji exposes breasts in public (255,725 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (209,789 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (195,191 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (188,346 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (164,028 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (147,354 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (140,777 views) Lagos plane crash: Journalist releases victims’ names (130,109 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (128,782 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (123,574 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (34) Business (2,912) Business Verdict (34) Columnists (806) Complaints & Requests (94) Enterprise & Opportunities (203) Entertainment (447) Features (549) Global Business Monitor (226) International (1,807) Interviews (143) Live Commentary (28) Love Matters (106) News (33,113) Opinion (885) Pidgin (10) Politics (4,523) Religion (687) Sports (1,442) Stock Watch (28) AMA & Al Jazeera Global Update

 

 

Football president George Weah puts Liberian army to the test

 

APO Group Partner

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement