Bitcoin is facing a major threat as a cloned cryptocurrency that shares its name and many of its key features launched on one of the largest cryptocurrency exchanges, sending Bitcoin prices tumbling.
Bitcoin’s price fell 10 per cent on Tuesday as Bitcoin Cash, a rival digital coin, arrived on Coinbase, one of the most popular cryptocurrency trading platforms. Bitcoin has fallen from almost $20,000 (£15,000) on Sunday to under $17,000 on Wednesday morning.
Bitcoin Cash was launched over the summer by a splinter faction of cryptocurrency developers. It has gained traction in recent months soaring to around $3,000 (£2,200) per coin and jumping almost 50 per cent in overnight trading.
The price of Bitcoin Cash briefly reached more than $8,500 on Coinbase’s own exchange, significantly more than the $3,500 it was trading at on other indexes.