Of Bitcoin, XT, and BitFinex

The Bitcoin price crashed from $252 to $161 on the popular trading platform BitFinex. The volatile dump was quickly reflected in other Bitcoin exchanges as well, including BitStamp. The price, however, has recovered to $233 at press time, but has still left many conspiracy theories behind. Let’s check them out:

The Bitcoin Fork Effect

The division of the Bitcoin community over the recent fork has initiated an ugly war on social media circles. An impact of such a negative media coverage have been utterly visible on multiple exchange platforms, each demonstrating a drop in Bitcoin price coincided with the launch of Bitcoin’s forked client — Bitcoin XT.

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As miners begin shifting to the new platform, it would simply create a competition between Bitcoin Core client and its own cryptocurrency. Traders might be fearing this scenario already, especially after reports of an increased traction in XT’s adoption. The fear is: that a new and improved client could hurt the current Bitcoin adoption; hence, the price drop.

There are, however, reports that the Bitcoin XT’s adoption is sluggish at this point of time.

BitFinex Orderbook

BitFinex is known for its weak handling

Read more ... source: TheBitcoinNews