Indians lose crores of rupees in bitcoin exchange collapse
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If you've been following the price of Bitcoin, you're accustomed to volatility. Since the beginning ofthe price has quadrupled, but a few sharp drops meant that investors could've easily lost money as well. How's Bitcoin doing after its big split? This volatility comes shortly after the introduction of Bitcoin's recently forged brother, Bitcoin Cash.
This other cryptocoin was created on August 1 by a group that wasn't happy with the direction Bitcoin was heading. This price rise of Bitcoin Cash has coincided with the price drop of Bitcoin, so what's happening? All you need to know is in this chart, which show the wild swing of how profitable it is to mine Bitcoin and Bitcoin Cash. Both Bitcoin BTC and Bitcoin Cash BCH protocols employ something called difficulty adjustment, which makes sure that miners people who employ their computing power to create new bitcoins and power the Bitcoin network in the process always mine an optimal number of bitcoins in a certain amount of time.
When there's too much mining power, difficulty goes up to make sure new bitcoins don't flood the market too fast.
But when the mining power is lacking, difficulty goes down, and it went down sharply for Bitcoin Cash. Suddenly, a computer that could mine one BCH Bitcoin Cash per day could mine several times as many, making a lot more profit.
And since Bitcoin and Bitcoin Cash are very similar, it's easy for miners to jump ship—and a lot bitcoin price in india 2017 chart them did. Then, on August 22, it became more profitable to mine BTC again, so miners are returning see chart below. There bitcoin price in india 2017 chart also a side bitcoin price in india 2017 chart to this: As mining power also called hash power or hashrate went away from BTC to BCH, Bitcoin transactions became slower and more expensive; now that it's coming back, the reverse is happening.
All of this is the most likely reason why the price of Bitcoin is currently recovering while the price of Bitcoin Cash is falling though admittedly not very fast. But this short-lived reversal shows how fragile Bitcoin really is. That little graph above will become very important again in November, bitcoin price in india 2017 chart Bitcoin will once again fork split into two to adopt a proposal caused SegWit2x.
This proposal was rejected by Bitcoin's core development team, and even though the majority of Bitcoin miners and exchanges have pledged to upgrade, it might cause a lot of trouble for Bitcoin. Ideally at least for SegWit2x proponents after the fork, pretty much everyone should switch to the new version of Bitcoin, leaving the old one to die. But there's bitcoin price in india 2017 chart a possibility that some group will decide to upgrade the legacy chain in a different way and push that version as the "true" Bitcoin.
If such a plan gains traction, miners will have three different "Bitcoins" to choose from, and that could cause chaos. All of these forks are mostly revolving around one issue: The block size in Bitcoin's blockchain. If you think of a blockchain as a bitcoin price in india 2017 chart notebook with records of all transactions on the Bitcoin network, then one block would be one page in the notebook.
Currently, at 1MB, that block is too small, and Bitcoin can only process a low number of transactions per day. Why is there so much squabbling over what seems to be a simple upgrade of the Bitcoin's software? First, it's not that simple. Bitcoin has become a bitcoin price in india 2017 chart network, and even the slightest change in code can have unwarranted consequences. Second, a lot of people have a lot of money in Bitcoin, and they're looking to protect their interests.
Third, Bitcoin Core—a group of developers that have guided Bitcoin's development since its founder, Satoshi Nakamoto, had disappeared in —has bitcoin price in india 2017 chart extremely reluctant to accept third-party proposals. As a result, they're losing their influence over the network, and since miners can choose which proposal to support, if the majority starts to mine, say, Bitcoin Cash, the original Bitcoin might become abandoned.
On one hand, this is democracy at work. It's good, in a way, that Bitcoin cannot be easily altered; if it could, then it would not truly be decentralized. But just like in political democracy, the masses could be manipulated to vote the wrong way.
Go to any Bitcoin-related forum and you'll see an immense amount of deception, half-truths, and good old muddying of the water, making it very hard to make an informed decision of any kind.
With Bitcoin's price and cryptocurrency buzz being near their all-time highs, things don't exactly look scary for the future of crypto. But scratch a little bit beneath the surface, and you'll see that the power struggle within Bitcoin, possibly the biggest in its history, is about to reach a climax soon. We're using cookies to improve your experience. Click Here to find out more. Business Like Follow Follow. This jacket uses solar power to give off a Kryptonite-like glow in the dark.
