Hisham Sarwar
The recent Bull Run for Bitcoin crashed the crypto-currency which fell more than 20% of its value. In 2017, this digital currency was expected to rise and break all of its previous records. But due to a disagreement between Bitcoin developers, made the currency lose its existing value. According to reports, a two-year battle has been running behind for running the platform that forms the basis of the Bitcoin marketplace. This made the crypto-currency to fell to $970 and is trading at just $1,000 currently.
The Bitcoin transactions in the market get traded in the form of blocks and the existing maximum size for processing one block of transactions if one megabyte. With the expanded network, the competing developers have been agitating to increase the size of the trading blocks. A recent proposal was placed forward to create a platform as Bitcoin Unlimited. This will place no size limitations on the blocks for processing transactions. But the developers who remained in favor of keeping the current version adhered to a proposal named as Bitcoin Core.
The actual reason behind the Bitcoin’s crash:
After the virtual currency passed the all-time closing high, it dramatically faced a downturn. The sudden drop came because the developers in favor of the Bitcoin Unlimited format threatened to set up a hard fork for the entire Bitcoin marketplace which they considered an effective alternate software platform for the currency to be traded on. The new and the current platform will not be compatible and would thus create a split meaning that there would be two versions of the crypto-currency.
For keeping the currency stable, it is necessary that each and every transaction gets monitored which creates and error-proof and transparent record of the currency’s transaction history. A market with two versions of the format would mess up the historical records. The possibility of a dual market for Bitcoin has added an uncertainty among people and has intensified the liquidity risks of market contributors.
After a decline in the value of the currency, around 20 Bitcoin exchanges announced that they will not be endorsing the new platform as it does not support a coherent and industry-wide approach for the running the crypto-currency in the market.
The latest price of Bitcoin can be seen at http://markets.businessinsider.com/currencies/BTC-USD
Via: Business Insider
