E Bitcoin's Journey Through November

One thing’s for sure, this month will not be missed. But what happened? Why did cryptocurrencies have such a bad month in terms of value? Why are they on the rise now? Let’s discuss the journey of cryptos in this month and more particularly Bitcoin.

Disputes among the tech community

When an industry boom happens in such a short amount of time, there will be some opposition to it from the outside. But sometimes the opposition comes from the inside. This was the case for cryptocurrencies as developers started disputing about a recent software update called the hard fork. Analysts at ForexNewsNow were able to predict the Bitcoin Cash price drop way back in the middle of August this year. The October figures matched quite well, but even they couldn’t expect such a rapid slump in prices just 1 month after.

The reason of the price drop was obvious, the BCH fork that was intended to actually boost Bitcoin transaction speed and value, divided the industry into two, when developers started disagreeing on how to handle the project. The primary reasons were that some developers wanted to add some new protocols and features, while others wanted it to remain the same.

Because of the dispute, we were able to see new cryptos form in the face of Bitcoin ABC (new protocols) and BSV (Bitcoin Satoshi’s vision).

Because of the formation of these new cryptos, developers started to heavily generate them through mining. Because of the price reduction and general unprofitability of mining these days, the developers were basically working on losses, just to be able to dominate the market with their version.

Business Insider managed to have an interview with the CEO of Independent Reserve, Adrian Przelozny, who voiced similar opinions about the price drop. He also mentioned the developers themselves, who may be holding onto a significant amount of cryptocurrencies themselves. In order for them to finance their recent projects of mining these new cryptos, they “dumped most of their reserve cryptos on the market, ultimately decreasing the prices rapidly”. However, Przelozny also added that this wasn’t necessarily a bad thing as the trading volumes had gone up more than 200%, thanks to the volatility, which leads us to today’s price increase and its reasons.

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Currency Trader 2 months ago Member's comment

I have to agree with this article.