The value of the bitcoin has fallen sharply in recent times, with a new low point. The crypto currency is worth about 3,845 euros at the time of writing, its lowest value since May 2017. According to analysts, this rapid decline is due to the bitcoin cash fork. That’s what Silicon Angle reports.
Bitcoin cash is a competitor and a fork (or demerger) of the crypto currency. The crypto currency was split last Friday after a long-running fight between fractions led by Roger Ver, also known as “Bitcoin Jesus” and Craig Wright, who once claimed to be the founder of the bitcoin.
Far is the one who made the cash variant ABC. ABC stands for “Adjustable Blocksize Cap”. This means that bitcoin cash also supports smart contracts, just as ethereum does. This also includes a blocksize cap, which can be adjusted to support the market.
Wright is on the other side with Cash SV, where the ‘SV’ stands for Satoshi’s Vision. This side states that bitcoin cash should only be used as a form of stable, global money with a standard block size of 128 MB.
Bitcoin cash managed to split off peacefully, while the original cryptic currency still exists. The problem, however, is that bitcoin cash is now in a battle over who is in control. And that creates chaos on the market. Some fairs now offer both BCH ABC and BCH SV. Others – such as Coinbase – only offer BHC. And yet other markets support one of the two variants.
The ultimate control over bitcoin cash depends on the support that the variants receive from miners and owners of the currencies.
In addition to the chaos caused by this battle, there is another reason why the bitcoin is rapidly losing its value. This may also be because the conflict between the parties has taken the computing resources away from the original currency. As a result, demand appears to be lower, and the price falls.
Incidentally, the price of other crypt currencies is also falling in the chaos. The value of ripple yesterday dropped by about 5 percent, ethereum by 13 percent and litecoin by 15 percent.This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.