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Bitcoin loses value after the debate on the currency's future

The price of bitcoin has seen a huge drop, after a debate on the currency's future.

According to a report by the BBC, bitcoin has fallen by $40 (£25) over the course of an hour.

Its current price is $215 (£137).

While some blame the price fall on the sale of 20,000 bitcoins through the trading platform Bitfinex, others believe the volatility was caused by the uncertainty surrounding the digital currency's future.

The price of bitcoin has since rebounded to around $235, according to CoinMarketCap, with a market cap of $3.4bn. "Emotions and uncertainty are at a high right now, and there are traders looking to take advantage of that," David Bailey, CEO and founder of bitcoin media firm BTC Media, said in a post on Reddit.

"Beware of manipulation! 20,000btc sell on Bitfinex was combination of 10,000btc short and 8,000 long position being closed. 'Be greedy when others are fearful'."

However, people were fast to notice the relation between the recent dispute and the price drop.

"The price of bitcoin has been very stable for six months," Reddit user trilli0n said. "The recent decline... comes at the same time as the uprise of XT. The fast declines in the past day come right after an XT block was mined."

Yesterday we reported that there is an initiative to create a new bitcoin called Bitcoin XT.

The currency's chief scientist Gavin Andresen, and its developer Mike Hearn say its adoption is essential to ensure the currency can cope with growing demand.