Bitcoin Cash Spikes To Record High As Bitcoin Collapses Over $1000

Tyler Durden's picture

Following the surge in Bitcoin's USD price after the suspension of the SegWit2x hard fork, the cryptocurrency has collapsed as traders exit 'fork dividend' trades.

Dennis Gartman had a few words of praise for the bulls right before the collapse...

Well “bully” for Those Who’d Gotten It Right: Our “position” on Bitcoin and the other cryptos is clear: we shall have nothing whatsoever to do with them, but “good on” those who’ve been long and right; but be careful… all Bubbles eventually end in tears.

As bitcoin fell, Bitcoin Cash - a clone of the original that was generated from another split on Aug.1 - surged, trading up as much as 35%, ahead of this weekend's launch of Bitcoin Gold.


This is all happening as CoinDesk reports, Bitcoin gold is set to go live this weekend.

In a new blog post, the developers behind the fork of the bitcoin blockchain said that they would release a formal software client for download at 7:00 PM UTC on Nov. 12. Originally set for a public launch on Nov. 1, the project is backed by LightningASIC, a seller of mining hardware based in Hong Kong, as well as a community of relatively unknown developers.

As reported by CoinDesk, the idea behind bitcoin gold is to keep most properties of the protocol, but restrict the use of specialized chips for mining, or the process by which new transactions are added to a blockchain (while also creating new tokens as a reward).

It's also the latest example of a "airdropped" cryptocurrency that will distribute new coins to anyone who owned bitcoin at the time of the split, or up until the date the ledger of transactions started to differ.

Yet in a move criticized by some observers, the team behind bitcoin gold has been mining blocks in insolation since the new network was formally created last month, with a certain amount of coins being set aside to support development.

In comments, the team behind the effort sought to send a signal of confidence to the market, perhaps owing to concerns circulating around the effort.

"We are extremely grateful for the community around the world who have been contributing hash power to our testnets; besides patiently testing their own mining process, they allow exchanges, pools, wallet developers, and all other service operators to implement and test their support of BTG so that the bitcoin gold community can have a full suite of services at launch time," the project's backers said in a statement.

In the days ahead, exchanges will no doubt be watching the launch. Soon after its August release, bitcoin cash, another cryptocurrency that forked the bitcoin network, amassed a nearly $4 billion market value.

Exchanges and traders will no doubt be watching to see if history repeats.

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buzzsaw99's picture

i will say this.  bitcoin acts more like a real market than anything i've seen in years.

bigdumbnugly's picture

yes, this can't be tolerated.

Skeptophrenic's picture

Yeah, +/- 20% on any given week is definitely the hallmark of a solid currency.

I love the fact that people can decide to split the currency and then mine it in isolation prior to the go-live date.

At least there’s no chance of manipulation.

Manthong's picture




Who could have seen that coming?

tmosley's picture

Literally everybody.

The difference is that the crypto bulls know this is temporary, as it has been EVERY TIME, while the oldbugs think it will be permanent.

crazytechnician's picture

Naa just cripplecoin getting the kicking it deserves. bitcoin cash is gonna usurp all the Alt's and segshit coin is gonna bite the dust within 12 months. Fuck core they want high fee slow tx that's what they gonna get. The only thing they have managed to scale for the last 3 years is their bullshit.

tmosley's picture

I find myself in agreement with your sentiment and conclusion, though I place a low confidence on it, so I am hodling some BTC, along with a number of alts. If your prediction comes true, my wealth will increase significantly, though. Even if the total market cap of crypto doesn't increase.

crazytechnician's picture

Block-Stream is living upto it's name. Their dumb-a$$ idea of crippling bitcoin so they could scale off chain and skim , dumb fucks had no off chain solution. They tried the hegelian dialect but forgot the actual Solution part. Fuckwits I give them a few months at best Adam Back is a major dumbfuck with zero business accumen, You see the shit he posts on twitter he's a complete twat.

silverserfer's picture

I predict your timing out of cryptos to be in the same manner as your silver position! Burned, badly.

tmosley's picture

Uh-huh. When you are shown to be wrong, I fully expect that nothing will change about you.

This is because those in cognitive dissonance never change their mind, no matter what facts and evidence they are presented with. You are ruled by your lizard brain, which is why you are stuck with an investment that is going extinct.

BigJim's picture

 The difference is that the crypto bulls know this is temporary, as it has been EVERY TIME, while the oldbugs think it will be permanent.

Yup, buy bitcoin, cuz it's strictly limited to 20,999,999.97690000 BTC! They'll never make more of it!

Forks are to cryptos what forgeries are to PMs.

No, cancel that, because a PM is a PM is a PM. Whereas a crypto could be virtually any algorithm, of which there are - quite literally - an infinite number. All BTC has is first-mover advantage. There are better cryptos out there. But BTC came first, which is why it will win.

A bit like UMatic/N1500/BetaMax video, come to think about it.

You were utterly wrong about silver, so maybe you should be a little more humble when it comes to making predictions, TMos.

Having said that, I wish I'd listened to Fonestar....

tmosley's picture

Your mania is a clear indication that you are experiencing cognitive dissonance.

Understand that my posts are designed to throw people like you into that state. You can defeat me by overcoming your own bias, if you have the mental fortitude.

silverserfer's picture

crypto-muppet here with little muppet hands flailing around in attack mode. Watch out!

Justin Case's picture

Eventually, of course, a vicious price decline turns out to be the start of a bubble implosion. The true believers will naturally hold, thinking that it’s just another bump on the road to a much higher price. They will continue holding while all the gains made during the bubble are given back.

The worst-case scenario is to be a non-believer and non-participant in a bubble, but to eventually get persuaded by the relentless rise in price that special circumstances/fundamentals justify the valuation and that a large commitment is warranted. That is, to become a true believer late in the game. This worst-case scenario is what happens to most members of the general public.

tmosley's picture

Each "bubble burst" has been smaller than the last.

Do you know why that is? Why do you think the next one will be different?

Justin Case's picture

thinking that it’s just another bump on the road to a much higher price. That's how you lose all yoar gains. GREED.

Bubble vision and greed. The market crash of 1987 is worth listening to. These people that recount what happened are all professional traders that do it for a living and have access to resources that you can't imagine, yet it caught them up in the down draft. It's dangerous when you think you know everything there is to know about markets.

Here's a guy (Bob) who's been in the markets forever, he's over 80 yrs old and still makes stellar calls on markets and companies. It doesn't cost you anything to listen, but could cost you if you don't. Do as you please cause I don't really give a rats ass about you or your wealth.

IH8OBAMA's picture

For the record, I am NOT this Bob Moriarty.  Although he and I have pretty much reached the same conclusions on the Bitcon.


tmosley's picture

As an early adopter of automobiles, I have no need to listen to the opinions of an elderly horse trader.

But thank you for your concern. Fiat will be hyperinflating within five years, and gone entirely within ten.

Xavier Doe's picture

Congrats - you've covered the DNA of a bubble implosion, over multiple comments (or at least mentioned the word "DNA" a few times ;-).

Still unaddressed, however, is whether Bitcoin actually *is* in a bubble or not -- and if so/not why/not.

So, I'll address it:

Bitcoin exhibits just about every aspect of a bubble except one: adoption by the public at large.  Currently, a very small set of people hold bitcoin.  When the herd truly starts to move -- let alone when taxi drivers and strippers are trying to sell you their Bitcoins as "sure thing" investments, and Grandma calls you every 5 minutes asking about her Bitcoin "portfolio" -- then we can debate whether things are, or are not, in bubble territory.

The price action by itself, with the tiny % of adopters we have today, doesn't reveal jack to you, me or anyone else about "bubbles".  The action is indistinguishable from the leading edge of a currency adoption/transition S-curve wave in the process of going (nearly) vertical, but which will level off at a point when adoption has spread to the population at large, at a price some # of orders of magnitude higher than where it is right now.

To say the least, the two graphs look similar.  So, which of the two is it I wonder -- are we seeing a bubble, or an adoption/transition S-curve?

It's fair to point out the many investment bubbles have we had in history, vs. the few if any orderly currency transitions have we ever had that exhibit this kind of price action.  Still, that doesn't really answer the question of what's going on with Bitcoin.  Guilt by association works, to an extent, but only if the items are associated... and I don't think Bitcoin "associates" with stocks, or other manias which are purported to hold "lessons" for Bitcoin etc. etc.  Sure, there are surface-level similarities, such as a desire by certain people to get rich off of the "mania", but under the surface Bitcoin is a very different bird.  Not better, not worse, just... different.

Lastly, as long as we're identifying currencies that are massively overvalued and about to fall, I'd suggest the U.S.$ meets those criteria more urgently than Bitcoin.  Amusing, to trip over the 500-lb. dollar gorilla in the room while stumbling over to talk trash to the Bitcoin dwarf cowering in the corner.  (No disrespect to *actual* little people...)

2rigged2fail's picture

Bingo!  This is what happens when you have 16 mil bitcoins and will only have 21 mil.  Just holding and see you at $13,600

BlackChicken's picture

Not all of us old guys who like gold. You're being a dick.

Justin Case's picture

There will be a day of reckoning and that will be the last you'll be hearing from these coyotes.

silverserfer's picture

new?, we will always have these assholes around here. Truly, they are just gambling addicts trying to get rich quick. Real investing and saving is to boring for these junkies. 

Justin Case's picture

I know. Everyone is smart until the bubble bursts. I've seen Long-Term Capital Management, Enron, Bre-X, WorldCom, Tyco International, HealthSouth, ZZZZ Best Inc. Nortel etc. Been there trading 35 yrs. and this whole exponential rise in price of Bitcoin has all the makings of a bubble. The same DNA as the rest of them. If it looks like a duck, walks like a duck, and quacks like a duck, it's a duck people.

Xavier Doe's picture

All of your examples are counterparties.  To do well, a counterparty has to perform.

Bitcoin does not have counterparties in the traditional sense, so the failure of a single institution does nothing to eliminate the currency.  The success or failure of Bitcoin is dependent more on the interests, desires and attitudes of the individuals participating on the network than on a den of pump-and-dumpers, scammers and other vipers.

Not saying you're wrong on your prediction, just saying that citing these kinds of examples is not very compelling evidence.

It also reveals how little you understand (or pretend not to understand?) what is going on with the cryptocurrencies.  WorldCom? Tyco? All of them are counterparties, or clusters of cascading counterparties, all of whom promise the moon and then have to deliver (and end up not delivering).  None of this is the case with Bitcoin.

Now, if you want to talk about technologies, social networks, network utility and/or herd mentality affecting Bitcoin's prospects... that could have a lot to do with it.

As far as everyone being smart: The only smart people in this equation are the ones who spell their name Satoshi Nakamoto. AFAICT the rest of us are retards. : )

Xavier Doe's picture

silverserfer: No - they are neither gambling addicts nor investors and savers, at least not in the traditional sense.

What they are, is desperate people fleeing the dying dollar .. just like everyone else on this board who is holding precious metals at the moment, as a means to flee fiat currencies.  Sure, a few earlybirds who are early to the party crow about their 'accomplishments' or prescience, or whatever, but those are the same few assholes who infest every social trend.  The bulk of the buyers of Bitcoin are, or will turn out to be, just ordinary people getting on with their lives.

maxblockm's picture

I think "oldbugs" is a reference to gold being older than BTC/the old investment, rather than age, but I could be wrong.

Personally I prefer "no-coinz" or "no-coiners" to oldbugs...or peanutz.

Took Red Pill's picture

Just BTFD it will go back up tomorrow 

CJgipper's picture

You mean BTFD, the dollar will drop back tomorrow, right?

Justin Case's picture

Well it's a correction, right? How will you be able to tell when it's blow off top or just a major correction before going higher? How far down do you wait before cashing out? It won't go straight down, there will be a couple ups and downs just before the free fall panic.

First Hand Accounts of the 87 Crash - Black Monday

IH8OBAMA's picture

That's the problem with bubbles.  No amount of analysis is going to tell you which run up is the LAST run up.


Justin Case's picture

Those that don't have bubble vision will start taking profits. Those that are greedy or new comers will be giving their profits to those that are liquidating positions. There is only one warning that is visible, but not everyone wants to believe it. It's the exponential rise. It has the same DNA as every bubble throughout market history. Bitcoin is no exception. When black Friday hit, I couldn't sell anything. The markets were jammed and they haulted all trading a couple times. It was to let people calm down and not act irrationally. Not so in Bitcoin and if NY stawk exchange was jammed up, imagine how bitcoin will lock up on the slow trading confirmations. It'll be a sight to see. Get some popcorn and wait for the show to begin. Just stay away from tall buildings. Millennials will be coming out of basement windows like rats in a flood out of sewers.

GoinFawr's picture

"The new jobs aren't even fuckin' jobs... I mean, whatya do? "Oh, I fuckin' sit here at home in my fuckin' 'manbun', doodlin'."" -FUBAR's Terry

maxblockm's picture

Well, this is where we are now:

If you even think there will be a blow off top, I think you'll have to wait until more than 1% of the population has adopted it: However, I don't think it will have a blowoff top, simply that the price will stabilize once we reach the top of the s-curve. Then it will stop growing exponentially, but still continue to grow gradually due to it's deflationary design.

Justin Case's picture

I look at logarithmic charts. Many professionals also use logarithmic charts because it helps them see how big moves are not on an absolute dollar basis, but on a percentage basis. Linear charts can be a bit distorted, especially with fast-moving stocks. Both types of charts are useful. The logarithmic are better to use to identify similarities on historic bubble blow offs. As I mentioned the DNA looks very similar to other bubbles.

Scrot's picture

God why?  Worst investment ever.

Golden Phoenix's picture

The 'futures' for Bitcoin Gold are trading at a lower price than the ones for the 2X fork that's now no longer even supposed to happen. The reason the 2X fork isn't supposed to happen is the market spanked it to death before it even arrived.  So, yes, developers of forks can do whatever they want but the market is free to punish them accordingly and savagely for their transgressions.

EddieLomax's picture

I saw that pre-mining too

"Yet in a move criticized by some observers, the team behind bitcoin gold has been mining blocks in insolation since the new network was formally created last month, with a certain amount of coins being set aside to support development."

It sounds the perfect product for people who want their food pre-digested.

E5's picture

so what stops the sovereign holders of bitcoin from slamming the new btg while the are the majority stake?  Or is the "free coin" to existing bitcoin holders a fractional representation of the overall quantity.  It doesn't make sense for stability.  They want built in adoption but is it required by the way they did the code???

E5's picture

Can you start a coin called PizzaGAtEPedofile coin for buying little boys and "give it free" to every bitcoin holder so that they are "trading in children" without their expressed desire to be associated with the coin????

buzzsaw99's picture

i wrote "acts" like a real market.  certainly fraud and manipulation has always been a possibility.  however, if it goes to zero (like many stocks should be right now but aren't) that too is "acting" like a free market.

Jay's picture

Nothing stops them except that it's hard sometimes to sell the new fork currency. Exchanges  have to support it. BTC holders before the BCH and BTG forks have all their current coins available to spend on the new forks.

Son of Captain Nemo's picture

All points BULLETIN TO the likes of "Free Shitter" and "tmosley"...

Your $10,000 "vessel" will still arrive either on or after Xmas!!!

FreeShitter's picture

I just need you to talk BTC down to 4k, keep up the fud.

Son of Captain Nemo's picture

No worries brotha...

You'll be receiving your early Christmas/New Year's gift... It's what comes after it that might be pause for some consideration!...

Since we started seeing 1 ounce salted Au coming out of some mighty "reputable" banking institutions, I've got my fingers crossed for you on what Gold "Buttcoin"'s are gonna look like when of course it happens!!!

Mustafa Kemal's picture

I bet Son of Captain Nemo's dad, Captain Nemo would have been into bitcoin. 

Captain Nemo would have the Nautilus rigged as an underwater bitcoin mining rig.