With recent events at hand, Bitcoin, as innovative as this tech is regarded by evangelists and critics alike, has just suffered another major downward trend in both consideration and trust when its value plummeted 14% for a matter of 30 minutes. Why are these flash crashes so significant? It’s because inquiries have been made, and flash crashes can shake the very fragile foundation of this cryptocurrency that can either lead to a successful mass adoption or to oblivion when a superior altcoin somehow supersedes the mother currency with better and more inventive features, guaranteed to be a more viable form of payment for the market. It is fairly certain to say that a lot of the risky companies have gained interest in Bitcoin’s potential over the years, but without investing a fair strategy of acquiring the coins, Bitcoin’s value will just endure more volatilities that will prevent it from getting the conviction it deserves – it’s a boomerang effect.
The Deal with the “Fork”
The cryptocurrency community is looking hard to find justifications for the fork. There is no doubt that Bitcoin is in dire need of evolution in order to perfect itself, and transactions are very limited in order to serve an anticipated amount of users in the next few months. Some analysts believe that Bitcoin will gain an exponential growth, and it should be prepared and seamless for such a phenomenon. Hence, the release of Bitcoin XT. It is expected to increase the limit for data allowed for each block from 1MB to a good 8MB. The projected amount of transactions per second will upsurge from 7 to 56 per second.
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However, even if both coins – BTC and BTC XT– are mined under the same systems, they are not compatible. For some, justifying the fork is similar to describing a coup from developers. We know how easily the masses are persuaded to regard the new with a bit more preference, and it’s not particularly difficult to imagine the populace switching to XT, especially miners who would prefer it from Bitcoin Core. Bitcoin mining has had a complicated relationship with trading, which is preferred by most tycoons who aren’t bothered to deal with mining hardware.
The State of the Coin
Advancements on its protocol can be an endless debate for evangelists, but with developers and tech professionals who are constantly working to improve this ground-breaking cryptocurrency, how are the current personalities and tangible actions of companies affecting the significance of this work? Fairly recently, the former CEO of Mt.Gox was rearrested in Japan for embezzlement charges.
The fall of Mt. Gox is a very significant piece in every Bitcoin enthusiasts’ journey to promote the mainstream adoption of Bitcoin. However, the inappropriate applications of this technology have no doubt hindered and closed a lot of minds to the possibilities of more pioneering utilisations. I would say that the current state of the coin is shaky, but there is more than enough room for recuperation.