Bitcoin prices dropped down below $5,000 USD on September 19, 2018. This recent drop adds additional pain to the losses suffered earlier this month and puts the digital cryptocurrency down by 75% from its late 2017 peak. According to Coindesk price data, the price of the Bitcoin released was as below as $4,951.47 USD.
Enter the World of Bitcoin
Bitcoin is a cryptocurrency, which is often times described as electronic cash. It lacks a central controlling body, which eliminates vulnerabilities for central attacks on the system. The transactions performed using Bitcoin is such that it is administered from user to user on the peer-to-peer work without the need of any intermediary or third party involvement. And these transactions are later verified by network nodes through cryptography (the practice and study of techniques for secure communication in the presence of the third party called adversaries) and recorded in the public distributed ledger which is known as the blockchain.
The person or group of people who invented Bitcoin still remain unknown. We do know that the creator used a likely alias, Satoshi Nakamoto, and was released as an open source software in 2009. Bitcoin can be exchanged in return for other cryptocurrencies or Fiat currencies, products and services.
Bitcoin is the world’s largest digital currency by market capitalization. Analysts believe that there have been quite notable events which may have been the drivers for the Bitcoin price slash particularly the Bitcoin cash hard fork and the ICO markets continued struggling.
“Bitcoin Cash” Hash War
Bitcoin cash came into existence on August 1, 2017, after separating from Bitcoins original blockchain via a hard fork. Attempt to manage the Bitcoin’s scalability problem is assumed to be the reason behind the separation. Bitcoin community led by Roger Ver fought for increasing Bitcoin’s block size. They further state that they are willing to see Bitcoin grow as a transactional currency and not as an investment asset. After experiencing more deceiving acts from the rest of the Bitcoin community, BCH creation left to be the only way out. The BCH network performs hard forks two times in a year as a part of Scheduled protocol upgrades.
Bitcoin ABC is the one which wants to preserve the radical values of a bitcoin cash. It is led by Roger Ver and many supporters to him include Bitmain, Binance, Coinbase and many more. This section believes that the basic structure of BCH is pretty good enough and do not any significant or no changes.
Bitcoin SV (Satoshi’s vision) was created on 16 August 2018, very near the fateful hard fork, by a blockchain development form affiliated with Craig Wright, who had previously claimed himself as Satoshi Nakamoto. The reformers are trying to change the current BCH structure. They want to entirely overwrite the network scripts of Bitcoin ABC and also wants to increase the current size of BCH from 32MB to a maximum of 128MB in order to increase network capacity and improve the scalability factor.
ICO Market Sufferings
The continuous efforts by the US Security Exchange Commission (SEC) to downmarket the innovative sales of digital currency mark the decline of the Initial Coin Offerings (ICO). Last week, the SEC declared that it had come into a settlement with Airfox and Paragon Coin Inc., which continued with the ICOs even after the government agency warning that the digital tokens sold through these ICOs might be classified as securities. Both the companies which had invested more than $10 million apiece into ICOs had to pay fines and compensate the investors who suffered losses.
Key Point for Investors
The price may seem very low to some people out there but it is always recommended to keep in mind that investing in Crypto coins or tokens is a highly speculative act as the cryptocurrency market is not regulated properly. So, if anyone wishes to invest in such a market then he should be priorly ready to lose his entire hard earned money.
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