Bitcoin News Roundup Week 31
In this Bitcoin News Roundup Week 31 it’s all about the Bitfinex hack, network hard forks, and the price action.
Indeed, all the key stories are inter-linked. One utltimately and greatly affects the other. In a small economy like Blockchain this is inevitably the case.
So, let’s look at the key news in Bitcoin News Roundup Week 31:
This was the leading story. It made mainstream press.
Blockchain has been consistently in the headlines over the last 12-months. Bitcoin specifically has been more or less absent from the debate.
Focus has shifted to institutional interest in blockchain technology. The narrative has been guided away from Bitcoin, to the promise of blockchain.
That all changed this week when Bitfinex was hacked.
This is one of the larger exchanges in the ecosystem. It is the leading patform for leveraged trading.
It was discovered this week that approximately ZAR 961,261,000 was stolen. While investigations and analysis are ongoing, the hack seems to have been due to a vulnerability in the the exchanges multi-sig security model.
Hard Forks and Price
The Bitcoin scaling debate resurfaced this week. A roadmap was outlined by those in the development community. A contentious hard fork appeared on the medium-term plan.
The bitcoin price was already in decline. The talk of a hard fork only exacerbated the downward price action.
Parallel developments in the number two network; Ethereum, made it particularly contentious.
— BTCC (@YourBTCC) July 25, 2016
That community had just been through a high publicity Hard Fork. All eyes were on the platform. What happened was not expected nor encouraging. Ethereum now exists as two separate, viable and valuable networks and tokens; ETH and ETC.
Markets do not like uncertainty. They did not react well to this situation. Although not directly linked to bitcoin, the mere mention of a possible hard fork in Bitcoin was enough to rattle the market.
Current Price Action
The fall in the bitcoin was steep and quick. But it has since recovered and is trading at around ZAR 7,950. We will go into more depth on the price and trading action early next week, in our market analysis blog post.