Why did Bitcoin’s price just drop 25% from Wednesday’s high of $7,800?
Meanwhile, Bitcoin cash has doubled to more than $1,500 over the same four-day period.
Well, on Wednesday the plan to expand the capacity of Bitcoin fell apart when not enough developers backed the new upgrade.
The upgrade would increase Bitcoin storage from 1MB to 2MB thus speeding transactions times which right now only can support seven transactions per second. Looking at it this way does seem to make Bitcoin Cash more appealing. On Saturday, Gavin Andresen (a leader of the Bitcoin project) tweeted “Bitcoin Cash is what I started working on in 2010. A store of value AND means of exchange.”
“Bitcoin Cash” is still not up there with Bitcoin, but could we possibly see continued growth? Supporters are betting that we will, as the need for both networks continues to grow. Bitcoin Cash has a greater capacity now, and a group that is committed to expanding the network further as needed. It now takes place of Ethereum as the second ranked Alt-Coin. This past Friday, Bitcoin fell to its lowest since November 1st. While its offshoot Bitcoin cash surged more then 40% to it’s highest since August.
Just to brief you:
A group of developers implemented an upgrade in August, which split Bitcoin into Bitcoin Cash (a new alt-coin) in efforts to increase transaction speeds.
We are now once again in the same dilemma. Bitcoin transactions have been growing at an exponential rate, while fees and verification times are getting high. Developers were planning another fork or “split” which would speed it up and lower transaction rates thus making a new alt-coin called “Bitcoin Gold”. The upgrade dubbed: SegWit2x, which initially had more developers behind it, but was called off on Wednesday due to diminishing supporters. But why?…
With the high transaction fees and long wait time other alt-coins will begin to take center stage as payments on everyday goods. Bitcoin Cash & ETH are faster and cheaper to use… So again we ask ourselfs WTFun???
Why would they ditch SegWit2x…
Well CME Group is launching Bitcoin Futures Trading in mid-December. Investors like the thought of a “digital gold” which acts as a fort knox to the crypto markets. Lets face it, people are hoarding their bitcoin while prices are surging.
In Zimbabwe Bitcoin is trading at $12,500.00 as their currency plummets. Makes sense to refrain from using it when the price is increasing so rapidly. Bitcoin is quickly becoming the worlds escape currency. My guess is the population using failing world currencys are all going to be jumping ship into digital currency REAL soon.
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