Value of Bitcoin Is Less Than $375

Bitcoin rate is prone to fluctuations. Changes in exchange rate are unpredictable and depend on various factors. The recent fall in exchange rate of the popular cryptocurrency is the result of the protracted crisis around the size of the block in the public ledger. The value of the digital currency dropped below $375.
 
Chronicle of the recent fall in exchange rate of Bitcoin
 
The first change in the rate to the downside happened on the night of January 28/29, 2016. Between 5am and 6am by Moscow time the rate reduced by $10 and reached $469. After the decline Bitcoin regained partially its position and at 9:30am the rate was 472$, according to CoinDesk.
 
Causes of the Bitcoin rate fluctuation in the beginning of 2016
 
The first fall in the exchange rate of the cryptocurrency this year took place in the middle of January. The cause was the letter of Michael Hearn, one of the developers of Bitcoin Core software.
According to Mr. Hearn, due to the fast growth in number of applications using blockchain technology as a basic financial platform there emerged a need in increasing the size of one of the data blocks.
The variant of increasing the block offered by Mr. Hearn became a bone of contention between major industry players. Chinese miners (they control the largest part of Bitcoin regeneration) with the help of numerous users put a veto on the project.
Hearn’s letter was followed by a publication in The New York Times, which became the reason for the first decline in the rate this year (the rate reached $370); however, soon after Bitcoin increased in the rate.
Agreement of major players’ opinions and immediacy of counter-measures ensured rise in Bitcoin up to $417. According to Roger Ver, a significant investor, the consensus was reached as a result of complicated shadow negotiations.
Such a fragile agreement causes nervousness in the industry, when uncertainty of major players may reflect on the stability of the exchange rate of this digital currency.