The latest cryptocurrency slide has seen Bitcoin and others lose more than 15 percent and Monero leave the top 10.
The price of bitcoin has taken a downward turn, hitting a global average low of $2,195.68 as it stumbles toward its lowest figure in June.
The downturn in markets is widespread as the top 40 cryptocurrencies all fell in what resembles a bloodbath.
Thursday’s collapse represents one of the sharpest falls for the cryptocurrency in 2017, altogether losing nearly $500 in value. At the time of publishing, bitcoin is trading to the dollar at $2,130 on Bitstamp.
Since Sunday’s all-time high of $3,000, bitcoin is down over 40% at its lowest point today.
While commentators scramble to look for an underlying cause, much like previous recent bouts of volatility, it would appear markets remain shy of the $3,000 barrier, which has proven significant.
The downturn, however, coincided with pro-hard fork Bitmain’s announcement it would oppose the implementation of the increasingly popular user-activated soft fork (UASF) as a means to bring about a solution to Bitcoin’s scaling dilemma.
UASF supporters came out in condemnation of the move, Tone Vays tweeting it had made potential investors “lose confidence” in the virtual currency.
Businesses have also signaled opposition to Bitmain, a notable public addition coming today from P2P marketplace Bitsquare.
Gulden lead developer, Malcolm MacLeod, has stated that the current Bitcoin price rally is not real growth and that eventually it will burst. He explained that the price rise is merely from contemplation and not actual network expansion.
The developer indicated that there are no real fundamentals to support the price rise and that it’s hard to confirm that Bitcoin is suddenly seeing huge amounts of people using it for day to day business.
According to MacLeod, the lack of purchasers being converted to users derives from several factors. Primarily, it is the fact that Bitcoin itself suffers from multiple usability issues, especially the current transaction queue issues being one of the more well-known ones.