The price of the digital currency bitcoin fell on Tuesday, amid volatility stemming from a split in the cryptocurrency that occurred earlier in the day. <\/p>\n
The price of a single bitcoin BTCUSD, +1.30% was down 5.7% at $2,710.39, according to cryptocurrency research-and-data site Coindesk. Ether, the digital currency that runs on the Ethereum network and is considered bitcoins chief rival, rose 2.6% to $209.91. <\/p>\n
While bitcoin remains below an all-time high of more than $3,000 hit on July 11, it has been in a general uptrend since a recent bottom on July 16. Ether, meanwhile, has struggled ever since hitting a record of $395.16 on June 13. <\/p>\n
The gyrations in bitcoin prices were largely due to the launch of Bitcoin Cash, a new version of bitcoin that followed a user-initiated fork in the digital currency. The split between Bitcoin and Bitcoin Cash occurred at 8:20 a.m. Eastern. <\/p>\n
Read more about the Bitcoin split <\/p>\n
The fork follows a July agreement that was considered controversial in the industry. The agreement dealt with expanding the bitcoin trading network in order to help process transactions quickly and efficiently, an issue known as scalability. <\/p>\n
Read more about bitcoin scalability <\/p>\n
Forks of this kind pose a risk for users of the cryptocurrency during the transition phase. In the event that only a minority of the network computing power supports one of the branches there is a potential for this weaker branch to become orphaned by the network or, in certain circumstances, for the forks to converge resulting in the wipe out of the weaker branch, said Christian Kourtis, senior associate at Gowling WLG, a law firm that specializes in financial technologies. <\/p>\n
The split caused some confusion at digital currency exchanges and brokerages, with some barring trades until they could confirm that their networks were stable amid the split. However, the volatility was seen as a short-term factor. <\/p>\n
When we look back 30 days from now, this is essentially going to be a nonevent, Sheffield Clark, chief executive officer of Coinsource said in a statement. <\/p>\n
Related: This is what it will take for bitcoin to become a legit currency <\/p>\n
At current levels, bitcoin has a market capitalization of $44.45 billion, more than double the $20.51 billion market cap of Ether. The overall crypto universe has a market cap of $91.17 billion, according to the data site CoinMarketCap. <\/p>\n
Over the long term, both bitcoin and Ether have been big gainers. Bitcoin prices have risen by nearly 180% thus far this year, while Ether has soared nearly 2,500%. <\/p>\n
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Bitcoin tumbles as 'split' takes effect; Ether rebounds - MarketWatch<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The price of the digital currency bitcoin fell on Tuesday, amid volatility stemming from a split in the cryptocurrency that occurred earlier in the day. The price of a single bitcoin BTCUSD, +1.30% was down 5.7% at $2,710.39, according to cryptocurrency research-and-data site Coindesk. Ether, the digital currency that runs on the Ethereum network and is considered bitcoins chief rival, rose 2.6% to $209.91 Continue reading