Bitcoin Surges Towards Record Highs As 'Cash' Crashes Over 70%

Tyler Durden's picture

While Bitcoin Cash (the product of the weekend's fork) remains the third largest cryptocurrency (by market cap), it is rapidly collapsing in price as 'supply' picks up after Coinbase folds and will allow its clients to access their 'cash' coins. At the same time, Bitcoin is surging back towards $2900 on its way to record highs.

As CoinTelegraph reports, Coinbase has had to put up with the ire of its users, as well as threats of a lawsuit, in regards to the decision not to support Bitcoin Cash, and it looks as if that pressure has forced their hand.

In the lead up to the hard fork of Bitcoin on Aug. 1, which resulted in a new digital currency called Bitcoin Cash, many exchanges announced they would not be supporting the fork which was expected to be a small event.

In the end, Bitcoin Cash surged despite its low hashing power, hitting upwards of $700, and because the fork was off Bitcoin, it meant that any person holding the original currency was entitled to an equal amount of Bitcoin Cash.

However, that required exchanges to support both forks, and Coinbase was not one of them. This led to people threatening lawsuits as it was pointed out that this was a breach of property common law rules.

A change of heart

Coinbase now seems to have flip-flopped on their decision as they announced on their site that they planning to have support for Bitcoin Cash by Jan. 1, 2018

Coinbase has spent the last couple of days since the fork evaluating the activity of both the forked currency and Bitcoin itself, seeing how the Blockchain matures and if there's the appropriate level of mining activity. Liquidity can be determined through this, and that is vital.

Coinbase has said that it was being cautious in not plunging head-long into the controversial forked coin stating it was balancing the technical stability, security or compliance of Bitcoin Cash.

Contingency plan

Coinbase has said on their site that they were never going to be able to safely support Bitcoin Cash on the day of its launch and that they were advising users to transfer their Bitcoin away from Coinbase if they wanted immediate access.

However, since they have decided to go ahead with supporting Bitcoin Cash, the exchange has made the following points clear:

  • Both Bitcoin and Bitcoin cash remain safely stored on Coinbase.

  • Customers with balances of Bitcoin at the time of the fork now have an equal quantity of Bitcoin Cash stored by Coinbase.

  • We operate by the general principle that our customers should benefit to the greatest extent possible from hard forks or other unexpected events.

Thus, once the support is fully in effect, customers will be able to withdraw Bitcoin Cash. However, Coinbase has also stated that it will make a decision on trading support at a later date. But in the meantime, customers Bitcoin Cash will remain safely stored on Coinbase.

And, among other things, that additional supply of BCC that was previously hidden, is weighing on prices. Bitcoin Cash has fallen from an all-time high of $974 to $262 today...

 

And at the same time, Bitcoin is rallying back towards record highs (as we suspect BCC sale proceeds are reinvested back into BTC)...

CoinTelegraph does note one last wild card...

So far Bitcoin has been largely unaffected by the chain split. After briefly dropping from $2,900 to $2,600 shortly before the split, Bitcoin’s price has stabilized in the $2,700 range. Virtually all Bitcoin miners are still mining Bitcoin, with almost none having switched to Bitcoin Cash. However, this could conceivably change, although it’s unlikely.

The only remaining wild card is the following scenario. What if the Bitcoin Cash network stabilizes, exchanges open up Bitcoin Cash deposits, and the price somehow remains stable (or drops then quickly rebounds)? In such a situation, Bitcoin miners might see that it is more profitable to mine Bitcoin Cash, and enough miners might switch over to cause a small increase in Bitcoin block times.

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DinduNuffin's picture

lets get physical

Manthong's picture

 

Cannot help but love her…

Even after the procedure

 

Appreciated Chelsea Clinton's picture

nothing like a sawlid Titty Lift

Creepy_Azz_Crackaah's picture

Those electronic 1s and 0s backing Bitcoin are incredibly valuable. I'm making high-end art out of them to hang on my wall.

InjectTheVenom's picture

 

>>>>    Bitcoin

>>>>    Covfefecoin

realmoney2015's picture

Ever notice how the Bitcoin logo imitates gold? It's pretending to be real money. One day I'll tell my grandkids about the days when we used digital numbers to exchange goods and services. And tell them that it was actually an improvement over the piece of paper backed up by nothing, that can be printed at will by a secret banking cartel. 

Of course, they will hold real money in their hands. Gold and Silver! 

Help us spread the message of real money: www.scentsaverscandles.com

Our Monetary system is the source of the majority of problems! Fix the money! End the Fed!

Manthong's picture

Hey, kids….

I am mentally all into crypto…. But not just quite yet.

And the frenzie will adjust it down to the dollar. eventually……..

It will take a few more states to accept it as payment …..

…for everything

realmoney2015's picture

And enter cashless society...at the people's request. All part of the plan if you ask me. If you can't hold it, you don't own it. 

Eager Beaver's picture

What will it be worth then? I wonder...

tmosley's picture

Probably not much. Bitcoin network is zipping along pretty speedily now.

It was fun trading it while the volume lasted.

Placerville's picture

What exchange did you sell from? I heard it was taking 20 confirmations and a lot of gyratons to get it off a Trezor, split, and sell.

thunderkiss's picture

It probably won't be worth much but it's free money nonetheless so fuck it.

Oliver Jones's picture

On the Kraken exchange, BCHEUR hit exactly 700,000 at 18:03 on 01.08.2017. On the Kraken trading platform, 700,000 was listed as the high figure for the next 24 hours, although I also got a screenshot from cryptowat.ch as a memento. That is the all time high for Bitcoin Cash (probably for any cryptocurrency out there), although it only lasted for about one minute. :)

Someone must have been giggling with glee on that day, and someone else - on the other side of that trade - was probably trying to drown their sorrows with copious quantities of alcohol.

Benjamin123's picture

Not all pieces of money are equal. The US dollar in particular is backed by the oil trade and a fierce army willing to kill anyone not accepting the US dollar for oil. No sarc.

Other currencies dont have that going for them.

shocktherapy's picture

So not only do have to worry about the miners forken you over. Now the exchanges can lock you out whenever they please.

realmoney2015's picture

Plus the MSM is all over Bitcoin. Makes me wonder if this isn't the establishments goal to bring in a cashless society. 

shocktherapy's picture

He who controls the money supply of a nation controls the nation. James A. Garfield

realmoney2015's picture

1,000 oz of silver would be cool

realmoney2015's picture

1000111100110101010111000110010110101010101010

Ok. Sent you the Bitcoin.  Now send the silver. 

Arnold's picture

01101001 01100100 01101001 01101111 01110100

Benjamin123's picture

Both of you are under arrest. The charges are money laundering, terrorism, tax evasion and anti-semitism.

Mustafa Kemal's picture

I dont think thats money laundering, thats

Bitlaundering

TwelveOhOne's picture

Can I just hit myself and squeal "victim"?

stacking12321's picture

Yes exchanges can make decisions about funds held, just like banks can.

That's why you don't keep anything on an exchange, you hold it yourself.

shocktherapy's picture

So why do you need exchanges at all in a decentralized system ? Isnt the idea, Not to be like a Bank ?

Michigander's picture

The only reason you need an exchange, dufus, is to convert crytpo to fiat. As more stores, vendors, and companies accept BTC, you wont need an exchange.

shocktherapy's picture

But, at the present time you need exchanges. As a retailer, if a exchange locks you out, it could cost you. If your a small business that could be devastating.

I run a small business, you want people to adopt this, but you bitcoiners are a little to arrogant for me. No better than fiat system your trying to avoid.  

 

Benjamin123's picture

You dont need exchanges.

Want bitcoin: Sell something and accept payment in bitcoin.

Want a product: Offer to pay in bitcoin.

People want exchanges because they dont see bitcoin as a currency. They buy it to get rich off the wild price changes, and never use it as currency.

BTW, one day the governments could spoil the party by banning bitcoin as a currency. The russians banned and arrested a gold dealer for accepting direct payment in bitcoin without going through a conversion step. You will all be billionaires in jail. It hasnt happened yet because it has not entered the mainstream but be certain that governments will never allow it to get too big. Encryption be damned, banned and you are all going to jail.

Placerville's picture

Exchanges are good to convert BTC or fiat to any other crypto and then back to your phone or hard wallet.

Benjamin123's picture

The point is not to use fiats, just bitcoin as currency. It isnt a currency. This money changing business has nothing to do with trade.

2_legs_bahhhhhd's picture

Red for being a dick, some people that don't understand bitcoin (like me) might actually ask an honest question, trying to learn. I'm set in my ways, and I have never trusted banks or government, but it doesn't mean I'm going to plough my life savings in what appears to be a new and improved method of controlling the money supply.

Bubbles and Ponzis have a way of making luck appear as genius.

affirmed_78's picture

bitcoin.org is a good place to learn the basics.

2_legs_bahhhhhd's picture

Thanks! But I want to get rich instantly. Working for 35 years took a shit ton of energy.

Golden Phoenix's picture

The real bitcoiners read an obscure mathematical encryption whitepaper, developed miners from it, and turned it into an ecosystem. Luck had zero to do with it.

On the whole crypto people are a friendly bunch. Coins have communities and some of them devote computing power to assisting disease or other research through projects such as BOINC and Folding@Home. There's also some incredible user support typically staffed by unpaid volunteers.

They're usually only dicks in places like Zerohedge where people are dicks to them first. Such as Fonestar having been relentlessly mocked for trying to explain it all to them when bitcoin was still at $2, now close to $3000. Those people set the dick precedent in stone. 

Benjamin123's picture

Treating bitcoin as an actual currency requires it being used as currency, rather than being a mere instrument of speculation to be sold for legal tender. Its meant to circulate against goods and services, without going through a dollar exchange phase.

It doesnt tho. Every vendor that accepts bitcoin is doing a lowkey currency exchange to US dollars. The prices are always set in dollars and then advertised in bitcoin at the "going rate". A Venezuela style gimmick, where the currency does not circulate but is used as a tool to bid for USD.

Yellow_Snow's picture

To trade between the hundreds of different coins.  One reason why Bitcoin is so expensive is because it is used as the main coin you trade in to or out of.  It's like the US dollar of CryptoWorld.

affirmed_78's picture

And it's basically the only one accepted at certain online, uh, "establishments".  This is the key thing about bitcoin - the network effect.  You want to own the coin that other people own and accept.  The one with the most investment behind it.  It kind of feeds on itself, and ultimately could result in mass adoption of bitcoin.

Four chan's picture

the fork since its a chink in the system is a tool of the jew and a stake in the heart of bitcoin.

Placerville's picture

Chink.......I see what you did there.

The only stake was the free B Cash I got for owning BTC, which will buy a lot of real steaks.

 

Jubal Early's picture

Its like I said:  They realized that the 2m block size was not going to even start to fix the performance problem, so they decided to just split that currency in two, like an Amoeba, thus achieving the doubling of performance they had been promising.

Manthong's picture

 

 

--how many micro micro micro Satoshi's equates to a real once of Ag?

Eager Beaver's picture

1 oz. Ag = .171 BTC

Buy them all day long, right here; https://www.jmbullion.com/about/payments/