Bitcoin has dropped from $1350 to $950 over the past two weeks
Material posted: Publication date: 27-03-2017
Due to the failure of the SEC to approve the launch of bitcoin and prospects that cryptocurrency is divided into two.

Exchange Bats Global Markets will protest the refusal of the SEC to approve the launch of the first exchange-traded bitcoin Fund, reports the WSJ. On 10 March, the Commission rejected a request to launch the Winklevoss Bitcoin Trust, which the brothers Cameron and Tyler Winkelvoss filed four years ago. Bats have had an agreement with only one bitcoin exchange – Gemini Exchange that is largely not regulated, explained its refusal by the SEC. The verdict of the SEC expect a few bitcoin funds.

"We agree with the SEC that regulation and supervision are important to healthy any market and protecting investors," commented Tyler Winklevoss, adding that, "having begun this journey four years ago," the brothers intend to bring a bitcoin Fund to market.

The market is still hoping that the SEC will approve the launch of the Fund, and on March 10 at the exchange Bitstamp, the bitcoin exchange rate reached a historic high of $1350, writes Reuters. For a short time bitcoin was worth more than a Troy ounce of gold, but after the decision of the SEC it became cheaper. The day he lost almost a quarter of the cost, the last two weeks traded volatile on Thursday worth $1044.

The last jump of the course is also related to a technical problem. For two years the programmers, exchanges and bitcoin entrepreneurs to discuss the limit on the size of the block (blockchain or block chain – bitcoin's core technology). Now a new unit "extracted" in 10 minutes, each block can store up to 1 MB of data. In the current state of the bitcoin network can conduct an average of seven transactions per second. This restriction was introduced to protect the network from hacking, but its bandwidth is no longer enough. The processing delay of the transaction and the expectation of execution of orders has caused the rise in price of bitcoin.

That's the "classic" Bitcoin Core can be an alternative version of Bitcoin is Unlimited, whose supporters are encouraged to remove restrictions. The debate between supporters of the two bitcoins happen in social networks, at conferences and private meetings.

Recently the support group Bitcoin Unlimited has threatened to change the system code (use hard fork) so that infrastructure of the Bitcoin Core and Bitcoin Unlimited will be inconsistent, writes the WSJ. In fact, it means the appearance of two bitcoins.

The exchange's bitcoins March 20 stated that it did not support the idea of changing the code, but if it happens, will trade Bitcoin Unlimited.

"We give all the power for Bitcoin mining it is Unlimited," said Bloomberg, Tihany, founder of Antpool, the world's largest mining-pool (15% of network capacity). "We don't know what happens from the code change, he added, – this will become clear only when you do."

Unlimited Bitcoin supporters argue that the network reliability is not affected, but the key code bitcoin developer Peter Todd doubts this: the removal of restrictions on the size of the unit will give the opportunity to large users, such as governments and global banks, to push individual users and monitor the network.

"Bitcoin Unlimited is hopelessly bad, said Todd Bloomberg, but the large miners have all the reasons to vote for the removal of restrictions to put our competitors out of business." According to Todd, with delays we have to fight, increasing the efficiency of blockchain technology.


China will regulate bitcoin

China, which accounts for the lion's share of trades with bitcoin may require exchanges to ban anonymous transactions with him. China wants to bring bitcoin trading on their exchanges in accordance with the practices of other countries and bring them within the law on counteraction to money laundering. Exchanges will be obliged to inform the authorities about suspicious transactions. To punish the exchange for violations of the people's Bank of China. In January, he began checking on the three largest bitcoin exchanges – Huobi, OkCoin and BTCC. As a result, the turnover of transactions with bitcoin in yuan fell to 17% of the world with a 97% six months ago.


Tags: financial center , finances , bitcoin