Bitcoin’s Price Crashes After Exchange’s Fork Statement

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The mood in bitcoin appears to have turned after 21 bitcoin exchanges, including Bitfinex, Kraken, Bitstamp, BTCC, stated they will list Bitcoin Core as BTC regardless of whether it is the longest chain or otherwise, sparking a constitutional crisis.

Price fell shortly after the statement by $30. It continued to fall, now losing more than $150 in just one day. Sentiment, too, appears to have turned negative in bitcoin trading forums as uncertainty considerably increases.

Following the ETF decision, bitcoin’s price held, but after a Bitcoin Core developer tweeted out a security vulnerability while it was being fixed, price turned downwards, falling by around $300 in just two-three days.

Meanwhile, ethereum has reached new heights as some leave due to the seemingly never ending infighting. The currency has risen from a market cap of just under $1 billion, to around $4 billion, with many bitcoiners saying they have flipped.

Some businesses have also diversified, with bitcoin’s increasing fees pricing out use cases, but just a few days ago, it seemed some resolution may be in sight. However, the tweet by Peter Todd made it clear such resolution would not be easy while the exchanges statement suggests it would be utter chaos.

People, therefore, are leaving, if price is any indication. Some to fiat and outside of this space entirely. Some to other digital currencies.

It is not clear whether now this is an existential crisis. The events of the past three days have shown a juvenile community that lacks objective considerations and favors the imposition of their mere opinion on others.

The exchange’s statement, specifically, makes it clear they will disregard miners, which leads any rational observer towards asking, well, then, why have miners at all? What’s the point of burning all this energy if just one man, the maintainer of Bitcoin Core, who decides what is merged in that client, has all say?

In any event, whether existential or otherwise, few can doubt this is very much a crisis. And crisis require a response, a solution. In this case, an urgent one. Businesses need to get together, with miners and developers. Just make a decision.

After two years, it does not reflect well at all on the bitcoin community that they still bicker. Far more important choices, such as the election for the leader of the free world, have been made in a shorter time. Yet we can’t decide one parameter.

 

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KC201

How did you manage to avoid mentioning Dash in this article?

Jack Tapper

“The exchange’s statement, specifically, makes it clear they will disregard miners, which leads any rational observer towards asking, well, then, why have miners at all? What’s the point of burning all this energy if just one man, the maintainer of Bitcoin Core, who decides what is merged in that client, has all say?”

I think you nailed it. This is the conundrum that’s causing the price fall.