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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aloha_snakbar's picture

Not surprising when you consider that the statisitically significant demographic makeup of those who specualte in gaming tokens is a high school girl, with ADHD, bipolar, OCD with a touch of shizophrenia....getting her period for the first time...

Brazen Heist's picture

To me it seems like every reported dip in Bitcoin triggers many on ZH to menstruate.

PN7's picture

Upvoted you.  I usually disagree with your opinions but I like your style.

Xena fobe's picture

I haven't heen following any of this.  What happens to BTC in a wallet?   Does it remain BTC?  Does it split into two or become something else?   What if I just let it sit in the wallet?  It's only half a BTC.  Not worth spending hours researching. 

Brazen Heist's picture

It seems like you're not al that fussed to begin with, so answers won't be of any use to you.

In fight club, you gotta do your own due diligence. Ask questions when you have some semblance of understanding after having made at least an effort.

tmosley's picture

If you have BTC in a wallet on a fork date, then you can download the software for the new coin and recover your new coins that way. I always advise waiting a month or so before doing this so that all the bugs are worked out and to ensure that the fork wasn't a scam to get your private keys for your main chain BTC.

Spaced Out's picture

Don't tell me.....bitcoin is dead again?

Otsegoflesh's picture

after that ETH fiasco where $150 million was accidentally deleted, seems BCH is where people are going to protect their BTC gains during this time of chain-splitting uncertainty. 

JibjeResearch's picture

BAwahahahhaha you assClown..

danster82's picture

Bitcoin core cant scale Bitcoin Cash can. Bitcoin Core censored Bitcoin Cash uncensored. Bitcoin Core replace by fee no zero conf transactions possible, Bitcoin cash zero conf possible.

Old time Bitcoiners knew this was a no brainer and will contiune to be. Buy Bitcoin Cash.

JibjeResearch's picture

Bawhah ahahha ahahah ahhaha STFU

Justin Case's picture

For technical reasons the bitcoin network can currently only handle about 7 transactions per second. Visa, by comparison, routinely handles thousands of transactions per second and, in a pinch, can accommodate up to 56,000 per second. If bitcoin's true purpose is to be an electronic payment system, it is about to spectacularly fail at that mission. In fact, it already is; transactions that used to be nearly instantaneous and nearly cost-less are becoming slower (taking hours or even days to be confirmed) and more expensive.

Gold, the known commodity with a track record of thousands of years, these types of considerations do not apply. Gold certainly has its own problems, specifically in the manipulation of the spot price. But for precisely that reason, seeing the price collapse to zero or shoot into the tens of thousands of dollars in the blink of an eye seems exceedingly unlikely.

So once again, it comes back to the basic philosophy behind the question of "value." Are you interested in the value of gold and bitcoin as measured in US Federal Reserve notes? Are they just another commodity to be used to turnaround a quick buck? If so, then by all means, study the charts, look for the patterns, find your opportunities and enjoy the game.

But what if the "value" of gold or bitcoin is not measured in government fiat, but in their own potential as monetary instruments? After all, the US dollar will not outlast the US government (in its current form, at any rate), but gold will and bitcoin might. And if these instruments are not investments but hedges, that changes the meaning of their "value," doesn't it?

Two Theives and a Liar's picture

Agreed. I think of BTC as a store of value play rather than a currency.