The bitcoin virtual currency lost a quarter of its value after a dispute over how to execute the big software upgrade.
There is a danger that this virtual currency will experience complete downfall!
Despite the sharp decline, bitcoin is worth about three times more than a year ago.
It now has a value of about $2100, while in mid-June it was worth over $3,000.
The most common virtual currency experienced a huge fall that could escalate into real failure.
But it is also possible for nothing to change as well.
The future now depends on whether those who maintain it can agree on the implementation of the major software upgrades.
And all of this to happen by the end of the month, in order to increase the capacity of the network.
However, for the time being, not all are completely consensual.
Some among bitcoin “miners”, i.e people who receive rewards in the virtual currency for what their computers are used for complex mathematical operations, do not support such changes.
The division between “miners” and those using bitcoins, among which there are quite a few startup companies and several large companies, could also bring panic to the bitcoin market, which is worth about $39 billion.
Bitcoin is otherwise a currency that is not related to any bank or government.
The basic idea is that no one can control this currency. And with it, you can smoothly pay, but that is actually its weakness.
If nobody can control the bitcoin, no one can intervene to prevent greater oscillations in value.
Bitcoin owners can give or receive funds in this currency anonymously over the Internet.
Which makes it an attractive currency for criminals who can also trade drugs, weapons. As well as other goods without the knowledge of the government.
Transactions are accomplished through extremely complex mathematical operations that require large computing capacities.
That’s why people who “virtually” deviate their computers are very important.
These computers then process complex mathematical operations, and their owners receive bitcoins in return.
Due to market growth, the network on which this crypto-valet operates has proved to be limited. And later delays in payments have become increasingly frequent.
Developers say they have found a way to speed up those processes by processing the Block-chain main base.
Among those who support the change is the Microsoft Coin-base Bitcoin Exchange Office. As well as many others who want to use bitcoin more on the market.
Those who agreed on such changes had given a deadline until July 31st.
And have threatened not to recognize transactions that were confirmed by “miners” who did not accept the promotion of the software.
This could create a lot of uncertainty in the bitcoin community. No one will surely know if the bitcoins they gave or received went through the system in a safe way.
Some of the miners’ community, such as the Chinese mining equipment giant Bit-main, have not yet indicated support for the new system.
AP states that the divisions could lead to two or even more incompatible versions of this crypto-currency that could lead to general chaos.
And perhaps the disappearance of the bitcoins that someone has bought.
The support site bitcoin.org advised users not to accept bitcoins two days ahead of the deadline. And to wait for this situation to be resolved before they start trading again with this virtual currency.
AP estimates that the dispute has been initiated because some companies believe that the new system could lead to a reduction in fees for transactions made, which translates into reduced profits.