The price of Bitcoin has suffered a significant drop following continued clashes between two schools of thought within the currency’s developer community.
Despite surviving the US Securities and Exchange Commission (SEC) rejection of the Winklevoss ETF, Bitcoin’s value plummeted on Sunday to as low as $970 on Saturday, the first time since Mid-February that the cryptocurrency has dropped below $1,000. It shed a fifth of its value in the process.
The latest downturn is due to the ongoing debate between Bitcoin developers, exchanges and theorists over the size limit of a batch of transactions on the Bitcoin blockchain. Currently these “blocks” can only contain 1MB of information. Some want to increase that capacity, a move which would increase the capacity of the network significantly.
The debate has grown in intensity over the past two years and has reached a fever pitch, with some analysts worried that a split may occur.