Bitcoin Recovers After Falling To Two-Month Low
The volatility of Bitcoin is what makes it that appealing to speculators and even gamblers. There are few commodities that can change their value so drastically in such a short space of time. This has been noticeable in the last few weeks where Bitcoin fell below $1000 between Friday trading and Monday afternoon. This was off the all-time record of $1,325 only a few weeks ago.
Reasons for the price fluctuations include the recent Chinese crackdown on Bitcoin exchanges which were forced to suspend activities. Another factor is the debate within the bitcoin community as to which technology to use. If the bitcoin network undergoes a hard fork it could potentially split into two separate blockchains which would possibly deter tech – savvy investors.
Basically one group within the bitcoin community wants to build a platform called Bitcoin Unlimited which would not restrict the size of blocks for processing transactions. On the other side another group want to maintain the original version called Bitcoin Core.
Until the infighting settles down investors are more likely to sell their bitcoin. This can be seen from data from Bitfinex who said around 5 percent of total coins had been sold in the last 30 days.