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Bitcoin adds to losses amid profit taking

Added on 09 August 2017 - 20:02 'Viewed 45 views times.

© Reuters.

– Bitcoin prices continued to ease on Wednesday, a day after a key software upgrade aimed at speeding up transaction on the bitcoin network was activated.

On the U.S.-based Bitfinex exchange, bitcoin fell to $3,314.6, down $127.7 or 3.71%, as investors appeared to cash in on the recent rally which saw bitcoin prices raise to nearly $3,500.

Bitcoin soared to all-time highs of $3,483 on Tuesday, as BIP 91, a software upgrade that seeks to introduce something known as SegWit2X was adopted by the blockchain supporting bitcoin – the digital ledger which records every bitcoin transaction. SegWit is short for “segregated witness” and proposes to move some of the data outside the main bitcoin network to increase its capacity.

The activation of SegWit2x came a week after Bitcoin ’s blockchain split into two, creating a competing currency called Bitcoin Cash.

Bitcoin Cash followed Bitcoin ’s move lower, easing 6.10% to $322.48.

Bitcoin Cash, was created as a result of a ‘civil war ’ in Bitcoin, after some members of the bitcoin community rejected software upgrade SegWit2x on the back of concerns that the measure fails to adequately address bitcoin ’s scaling problem.

Bitcoin transactions are limited to one megabyte every 10 minutes – or seven transactions per second. This compares to 2,000 per second for Visa and means that at peak times bitcoin transactions can take hours to be fulfilled, inhibiting the currency.

Bitcoin Cash seeks to increase the block size to eight megabytes whereas SegWit2X proposes moving transaction data outside of the block on a parallel track with plans to increase bitcoin ’s block size later in the year.

Meanwhile, Ethereum, rose to $293.61, down 0.57%.

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