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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tmosley's picture

Free cooling. Pretty good idea.

albanian's picture

How many bitcoin's are there?

 

FreeShitter's picture

Not enough for me unfortunately.

silverserfer's picture

infinate. Dont let the crypto-juknies around here fool you. All these "forks" is their patetic attemts to get in the bottom of a new ponzi. 

FreeShitter's picture

Maybe in the next lifetime u will be rich.

totenkopf88's picture

90% Bitcoin

5% Stawks 

5% Bonds

marysimmons's picture

Healthy correction in the crypto markets.  BTC has gone from $3K to $7.6K in less than two months!  Recent run up in alt coin market, that would have happened after the B2X fork, also having a healthy pullback.  

 

Mr. Apotheosis's picture

"90% Bitcoin

5% Stawks

5% Bonds"

Totally nuts. Hope you have some cash set aside. I'd be on meds if I had 90% on volatilecoin. Luck o the Irish to ya.

tmosley's picture

Interestingly, BCH spiked up before BTC really started falling. Seems like seperate events.

>tfw you were up and looking at your wallet thinking to yourself that you ought to buy some BCH with your BTC gains, but decided to wait for a dip

RedDwarf's picture

For every seller there is a buyer.

Do you know what professional traders without emotional baggage tied up in their decision making process think when they see high volatility combined with an unmistakable upward trend?  They see the opportunity to make a LOT of profit.

You guys make me laugh.

Buckaroo Banzai's picture

You know I'm a fan of Bitcoin Cash tmosley. Bitmain has only been accepting BCH for their latest batches of Antminers. Thought that was a tell.

Buckaroo Banzai's picture

Indeed. And even though BTG got off to a rocky start, it looks like they are finally getting their shit together. They have done a nice job differentiating themselves away from BCH and BTC. With Segwit2x turning into a dumpster fire, BCH and BTG should get some nice play going forward IMO.

sleigher's picture

So I should have held my BCH is what you are saying...  oh well.  Bought 5 oz's of AU instead.

Buckaroo Banzai's picture

Hey, you locked in the gains from your free coins. Nobody ever lost money taking a profit.

Justin Case's picture

from vapour to paper to tangible. Wise move in my humble opinion.

Golden Phoenix's picture

Hodlers of BCH need it to get to 1600-1800 just to catch up to the guys who dumped it in August at 800-900 then doubled it in BTC. BCH is an alt and alts periodically reinflate before popping and seeing all gains reinvested in BTC - unless 'it's different this time'. The August BCH peak was $914 and it's almost there. If it's the real deal and not just Fork FUD we should know very soon by which way it goes from there. 

Nature_Boy_Wooooo's picture

That news is at least a month old, already been factored into the price a long time ago.

Nature_Boy_Wooooo's picture

Sounds like a sleazeball corporate move.

At least Bitcoin is filtering out the greedy ones who were in it for all of the wring reasons.

 

 

Jay's picture

I don't understand the BCH spike at all. Why? I thought BCH was done. 

tmosley's picture

It IS closer to the original protocol, in addition to being better managed. Now that everyone has gotten their "free" coins, they are at coins that are better than BTC. BCH is a pretty obvious target (in hindsight, worthless as that is).

TBH, I would like to see BCH prevail and maybe even become BTC again. Would certainly increase my wealth at this point, as I spent much of my BTC building my alt portfolio, while hodling my BCH.

Buckaroo Banzai's picture

BCH has got a lot going for it, IMO. Like tmosley said, it adheres more closely to Satoshi's original technical vision, which makes it far less susceptible to bankster interference. This botched Segwit2x hard fork is a great example of what happens when banksters try to hijack blockchain technology for their own personal gain, their ham-handed antics simply don't play in an open-source world. That's why I'm not sad to see it crash and burn. IMO, BTC will become more bankster-friendly going forward, that's probably inevitable and not an entirely bad thing, but it's nice to have BCH as a counterweight to their shenanigans.

Nature_Boy_Wooooo's picture

Bitcoin Classic hanging it up and moving over to BCH along with all of the S2X backers. Basically you have 3 groups merging into 1.

BCH is the new choice of BIZcoin. Corporate money wants cheap fees, miners want easy mining so they can make more money.

 

Ink Pusher's picture

“Mankind is in danger of destroying ourselves by our greed and stupidity.”

~ Prof. Stephen Hawking 

 

"Boundless Greed is our driver,Repetitive Stupidity is our legacy."

~Ink Pusher

Greenspazm's picture

Which Hawking are you talking about? The one who died in the 80s or one of the newer generations of voice box operators?

http://milesmathis.com/hawk3.pdf

Ink Pusher's picture

It matters not.  These words still ring 100% true, regardless of whom is being accredited with the original utterance.

Infinite QE's picture

Or its creator.

How else would they have had access to NSA encryption technology.

tmosley's picture

Are you talking about the publicly available SHA-256 algorithm?

RedDwarf's picture

"Big Government Is Bitcoin’s Greatest Obstacle"

No, it is it's greatest ally.  If we already had sound money as opposed to fiat then the demand for bitcoin would not be as explosive as it is.

You might as well claim that the high price of drugs in America, both legal and illegal, has nothing to do with governmental policy and laws while you're at it.

Justin Case's picture

high price of drugs in America is proof of true capitalism without Gov't intervention to what price a corporation is allowed to price their product at. Free markets 4ever!!

Xena fobe's picture

Oh but govt does merely let free markets deccide.  Govt prevents free market price discovery by blocking imports and raising barriers to new market entrants.

Justin Case's picture

If you voted, it's yoar fault. You elected them.

"Govt prevents free market price discovery by blocking imports and raising barriers to new market entrants." So why all the retoric about China and unfair trade? Make up yoar mind.

RedDwarf's picture

Yes, the high price of drugs in America is due to government intervention, albeit said intervention is bought by those same drug companies.  Corporations that leverage their wealth into political influence marry themselves to the State, becoming an arm of it in time.  Once so married selective legal enforcement, laws, monoplies, favorable regulations, and the like follow, protecting the corporations from free market forces, and eventually the liberties and economies die.

SubjectivObject's picture

bitcoin gold is somehow related to gold?

right?

right!?

sheikurbootie's picture

Sort of like the Republicans in Congress.  No gold, no where.  It's not even a coin.

Buckaroo Banzai's picture

It will become one this weekend, they finally released the code.

Justin Case's picture

Inagination will fix that. Look at the picture moar often.

Justin Case's picture

It's not even a coin

Take a picture of the coin and you'll own a derivative position in Bitcoin.

Calculus99's picture

Don't get me wrong, I like CCs and own a few but all forks, 2 types of Bitcoin (one going up, the other down), more potential forks and games on the cards, it's far too confusing even I would assume for many of the current owners. 

THEY NEED TO BE SIMPLE. 

Until that happens, they have zero chance of hitting the proper big time. And until that happens they'll remain a very niche product. Of course people are workjing on it, but they should not lose track of how important simple is.

As for Gold, looks pretty simple to me... 

tmosley's picture

There is zero need for simplicity. The market will sort things out long before crypto reaches prime time. Whichever one dominates when it reaches 10% adoption will almost certainly be the one that dominates when it reaches 90% adoption.

malek's picture

"There is zero need for simplicity. The market will sort things out"

Yep, with market participants not understanding what they're doing.
Feels like a sound approach.

tmosley's picture

You sound like a communist.

2rigged2fail's picture

This guy turned 500K into 250 mil.  The herd has not joined yet either.

 

https://www.youtube.com/watch?time_continue=1&v=chRFimo06aM

 

 

Justin Case's picture

I'll buy when I see Mostly's video on U-Tube. Then I know it's not a pump and dump infomercial.

illuminatus's picture

Holding Gold would be simple if there really was free market capitalism, but there isn't. Bitcoin in my opinion is gaining so much support because people are under the impression that it is not manipulated by any central entity/authority and not manipulatable, ie.an alternative to fiat.If that perception changes bitcoin will tank. That does not mean that other blockchain based tokens or contracts will not take bitcoins place. It is the blockchain technology itself that is so important and revolutionising. Bitcoin, while being the first is in danger of losing its dominance by incessant forking, whatever the reason.

silverserfer's picture

crypto is where the action is no doubt. but dont fool yourself about what it really is. a tranistory opprotunity to gain and lose a lot of money real quick. The types of people who are into this software are all out to rip each other of. Its really that simple.