Newsexpress place banner advert Yudala genuine products
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

Views: 827


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 3:34:54 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

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...
COINCIDENCES: Of Pandit Nehru and Adesoji Aderemi, Gandhi...

Nigeria next to be banned by Trump?

It will be another day of dust haze...

Biafra: “Nnamdi Kanu apologise to Buhari? Impossible!”

Nasarawa: Community leader cries out over incessant raping...

BLOODY CHRISTMAS: Gunmen kill Pastor, worshippers during church...

Erosion threatens N7.5b structures at Oko Federal Poly...

Tinubu, Oshiomhole, Kukah, Falana to discuss Nigeria’s development...

Anambra 2014: APGA shakes Awka as Obiano flags...

Nigeria’s oil resources used to enrich the elite,...

Lagos apprehends woman using infant twins to beg...

Abia Police implements new strategies to fight crime...

 

Latest News Recalling Dino Melaye from the Senate not an easy task – Senior INEC official Teenage UNIBEN student wins N10m in talent hunt Corps member robbed and killed in Yenagoa Kaduna sacks 124 Traffic Marshals Probe sources of weapons used by killer herdsmen — Sultan Fire guts Abuja mega church El-Rufai preaches unity at Sallah, urges Nigerians to jointly resist agents of doom Na’Allah highlights stewardship, felicitates with people of Kebbi, Nigeria on peaceful Eid-el-Fitr 123 die in tanker fire disaster FG eyes $1 billion tax windfall My role in Evans’ kidnap gang — Soldier •How he was nabbed Quit notice: Ohanaeze worried over non-arrest of Arewa youths

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (259,088 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (238,359 views) Shameless Genevieve Nnaji exposes breasts in public (195,537 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (169,794 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (165,043 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (146,600 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (127,095 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (121,408 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (112,049 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (105,319 views) Lagos plane crash: Journalist releases victims’ names (105,259 views) APC cries foul as PDP’s Fayose takes early lead in Ekiti governorship election (98,059 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (27) Business (2,600) Business Verdict (17) Columnists (702) Complaints & Requests (92) Enterprise & Opportunities (157) Entertainment (334) Features (461) Global Business Monitor (154) International (1,426) Interviews (124) Live Commentary (28) Love Matters (59) News (25,788) Opinion (736) Pidgin (8) Politics (3,743) Religion (566) Sports (1,281) Stock Watch (18) AMA & Al Jazeera Global Update

 

CBN words on marble advert

 

 

Thousands of Biafrans gather at Nnamdi Kanu’s father’s palace for address...

 

APO Newsbreak logo

 

CLASSIFIED ADS

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

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

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

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

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