Bitcoin has a BIG problem. Perhaps even a GIANT problem. Bitcoin’s credibility has been rocked and it may not survive, at least in it’s current form. The ‘warring factions’ who differ on software and want a “hard fork” (spin off) seem to think all will be OK and just fine. NOT. Markets hate uncertainty and with all this wrangling going on “smart money” will be on the sidelines for quite some time. Actually makes the SEC decision denying a bitcoin ETF look pretty smart, and making the SEC look smart is really hard. Great read on a VERY topical subject. (And a tip of the hat to Despair.com, the site that sells the hilarious “demotivational” poster above.)
‘Bitcoin’s price plunged 25% over the weekend on rumors of a conspiracy theory to take over the network.
Long-simmering tensions between two factions hardened, with each side threatening the other with everything ranging from lawsuits to software changes that would completely cut off the opposing group.
Twitter, Reddit and Bitcoin forums were aflame with insults and tough talk as each stakeholder vied to ensure that their piece of the cryptocurrency, whose market cap fell from $20 billion to $15.5 billion, remained secure.
“We’re dangerously close to what could be the death of bitcoin,” said bitcoin developer Andrew DeSantis over the weekend after he posted a tweet storm Friday that set off alarm bells for many in the community.
What triggered the widespread panic was the possibility that the network would be controlled by an oligopoly rather than held in an equilibrium of competing interests.
From Thursday to Saturday, the value of bitcoin dropped 25%, though it has recovered somewhat to 15% below. That day, Vinny Lingham, an entrepreneur in the space known for his price targets, said, “The smart money left three days ago….”’
Read Full Article at Forbes