weeklystandard.com / CHARLES SAUER / 2:11 PM, SEP 4, 2015
Bitcoin value dropped significantly in August, which proves that Bitcoin and crypto-currency markets are still developing. The value of Bitcoin is tumultuous to put it lightly, but dropping from $256 on August 17th to $200 on the 25th of August is pretty a big deal. Furthermore, this drop happened in opposition to what many may suggest Bitcoin should have done in response to China’s devaluation and the subsequent big losses in the U.S. economy. Driving this devaluation is fear, and the exposure of the most important development in the crypto currency movement: politics.
Right now a fascinating lesson is happening over at Bitcoin. Bitcoin is quickly reaching an inflection point where the technology will reach a maximum of transactions that it can handle in a given day. Unable to agree on a consensus, quickly enough for the proponents of BitcoinXT, supporters of change pulled their biggest programming weapon out and used it.
I refer, of course, to the fork.
Open source programming is kind of like a page on Wikipedia: Anyone can log in and contribute, while different levels have more administrative rights than others, everyone can see the underlying code and debate and work on making it better. However, sometimes there is a disagreement and this is when things get tricky with a leaderless movement or program. Previously, the lead contributors of Bitcoin have waited for consensus among themselves before rolling out any changes, and then waited for 95% implementation before fully rolling out those changes. Even this conservative model previously caused waves at times in the community including several incidents of blocks of transactions, one in early July, that were wrongly added causing some problems in transactions and some doubt about the system earlier this summer.