Bitcoin has been going through a lot of changes structurally that has altered the way in which it operates. The early crypto-pioneer that launched in 2008 with their one of a kind, “block chain,” has recently transitioned to a new ATM platform making it easier for consumers to access their currency. In the midst of payout reductions and class action lawsuits, Bitcoin and its affiliates are making the adjustments to sustain their exclusive business model. BitQuick, a marketplace for buyers to easily exchange and purchase Bitcoins, was recently acquired by Athena Bitcoin following a hack that caused BitQuick to temporarily shut down. This cyber-attack resulted in the disclosure of users’ private information but all outstanding balances were returned to the victims. BitQuick representatives said that this recent acquisition by Athena Bitcoin has nothing to do with the cyber attack but were conducive to company goals.
Bitcoin has people known as “miners” that serve as hosts of its servers and basically bind the network together. They have been accustomed to receiving 25 bitcoins for this labor, which is a little over $14,000 USD. However, next month miners are expected to have their payouts cut in half as a move to prevent inflation and stabilize Bitcoin’s growth. However, skeptics argue that this will cause a lot of miners to shut down which may eventually subvert the network as a whole. Others believe that this strategy will only increase the value of Bitcoin which ultimately works in favor of miners and investors. We can already see signs of increases as Bitcoin reach a rate of astronomical proportions.
According to the Bitstamp Price Index (BPI), the value of one bitcoin hit a high of $587 continuing on its path from the closing of last month. On May 28th, it was valued at $500 but jumped to its present price of almost $600 in merely a week. This recent price increase has been speculated as an outcome of the upcoming mining payout reductions. Others have theorized that China is playing the biggest role due to its domestic currency, yuan, losing its value. Because there is a higher demand from Chinese markets for Bitcoin, this has helped boost the value exponentially. Nevertheless, the price surges are evoking a series of mixed responses from those involved and miners can’t help but feel as if they’re on thin ice.
KnC Miner recently had a class action lawsuit filed against them and announced bankruptcy shortly after. The Sweden-based Bitcoin startup became one of the leading mining organizations distributing state of the art mining hardware products. However, critics have argued against the adequacy of their products along with shipping issues that pushed KnC out of the business-to-consumer hardware industry. Moreover, a verdict warranted that KnC clients were actually business entities instead of customers disabling them from receiving consumer protections and settlements.
Earlier last month, we discussed how Bitcoin has been challenged by its predecessor, Etherium as it continues to climb the ranks of recognition and credibility. Bitcoin continues to struggle but is still the leading cryptocurrency on the market valued at $9 billion followed by Etherium’s “ether” valued at $1.1 billion.
Francisco Corella, Founder & CTO, Pomcor Mobile concurred with The Scope Weekly. He told us “Bitcoin has achieved impressive success as a digital currency, and it underlying blockchain as a tool for distributed consensus. But it may be time to move beyond Bitcoin, whose governance mechanisms seem to have broken down. A second-generation blockchain such as Ethereal is more scalable than the Bitcoin blockchain and features aTuring-complete language that allows the development of a wider range of applications. Second generation blockchains may also rely on proof-of-stake rather than proof-of-work for achieving consensus.eliminating computational waste and alleviating environmental concerns.”
Do you think that Bitcoin is on its way out or is there hope for the innovative virtual currency to stay alive?
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