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

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.

Comments

Manthong BaBaBouy Fri, 11/10/2017 - 09:19 Permalink

 
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  Geez, Who could have seen that coming?

In reply to by BaBaBouy

crazytechnician tmosley Fri, 11/10/2017 - 12:35 Permalink

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.

In reply to by tmosley

BigJim tmosley Fri, 11/10/2017 - 10:51 Permalink

 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....

In reply to by tmosley

Xavier Doe Justin Case Sat, 11/11/2017 - 01:13 Permalink

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...)

In reply to by Justin Case

Xavier Doe Justin Case Sat, 11/11/2017 - 00:12 Permalink

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. : )

In reply to by Justin Case

Xavier Doe silverserfer Sat, 11/11/2017 - 00:17 Permalink

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.

In reply to by silverserfer

maxblockm Justin Case Fri, 11/10/2017 - 13:58 Permalink

Well, this is where we are now: http://s619.photobucket.com/user/maxblockm/media/Bitcoin%20S-Curve%201_… 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: http://s619.photobucket.com/user/maxblockm/media/Bitcoin%20S-Curve%202_… 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.

In reply to by Justin Case

Golden Phoenix Skeptophrenic Fri, 11/10/2017 - 10:42 Permalink

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.

In reply to by Skeptophrenic

E5 buzzsaw99 Fri, 11/10/2017 - 08:59 Permalink

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???

In reply to by buzzsaw99

Son of Captain Nemo FreeShitter Fri, 11/10/2017 - 09:13 Permalink

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!!!

In reply to by FreeShitter