Bitcoin Price Drops as Bitcoin Cash Hard Forks.

Bitcoin Price Plummets

Bitcoin saw a fierce drop in value from ~$6,387 USD to ~$5,358 USD at its lowest point over the last week. This drop in value followed a period of stability that stretches back all the way to early September. While significant drops in Bitcoin price aren’t anything new, they still seem to happen at an interesting moment in time.

Clash of the Protocols

A hard fork of the Bitcoin Cash blockchain was just recently implemented as two clashing protocols couldn’t seem to agree on the best way forward.

In the first protocol, new code that would help numerous cryptocurrencies communicate more effectively with one another. Additionally there were improvements that reorder transactions, which in turn increase overall block capacity.

The competing protocol is actually some old code which is harvested from the original Bitcoin protocol. This quadruples block capacity from 32MB to 128MB.

At moment, Bitcoin Cash has 2 chains

Although there are two separate chains existing at the moment for Bitcoin Cash, that may not always be the case. Advocates for either side of this protocol battle warn of possible damage to networks that could fatally impact things going forward for Bitcoin Cash.

It is clear that there is still a need for a conclusive outcome. Until then, two separate chains will continue to exist until such a time.