The bickering has hindered interest in the virtual currency, sending some to a newer alternative, Ethereum, that has surged more than fortyfold this year and is now worth only about 20% less than all the traded bitcoin, according to CoinMarketCap.com.
“A lot of my friends are selling their bitcoin and buying ethereum,” says Zachary Mallard, who runs a men’s grooming-products business in Brooklyn, N.Y. Mr. Mallard bought some ethereum in recent months, passing up on bitcoin in part because he views the potential split in the currency as limiting the potential gains.
The debate between the two sides has intensified in recent weeks, as bitcoin has rallied more than 160% this year—and that is despite the recent swings in the currency’s value. Ultimately, how the trading is structured will help determine who controls the increasingly valuable currency, and who potentially gets rich from that control.