What a week! It was a crazy week even by crypto standard, and it is only getting more intense by the day.
As I am writing this email, Bitcoin Cash surpassed Ether and became the #2 most valuable cryptocurrency, with a price of $2,380 and market cap of $40 billion. Mind you, Bitcoin reached this market cap only in May this year, after 7-8 years of existence and development.
During the last week, Bitcoin price was down 20% to around $6,000, and Ether price was up 2% to $306.
Alt coins was pumped for 2 days before going downhill again. This week was a perfect example that anything can happen in crypto.
Let us try our best to summarize the events that happened in the past week, in particular relating to Bitcoin / Bitcoin Cash:
- On November 8, supporters of SegWit2x called it off, citing the lack of consensus. The original hard fork date was set to be November 16.
- Capital flowed away from Bitcoin and into other coins because there were a lot of people who bought Bitcoin anticipating to receive the SegWit2x coin for free.
- In particular, those who wanted a Bitcoin block size increase switched to Bitcoin Cash now that the SegWit2x chain is no longer.
- Bitcoin Cash was endorsed by Bitcoin heavyweight such as Gavin Andresen, mainly because it is a better currency for medium of exchange.
- Bitcoin Cash is also currently more profitable to mine than Bitcoin, causing some mining power to switch to Bitcoin Cash.
- As a result, Bitcoin hashrate dropped by half, which means that it takes longer than the usual 10 minutes on average to generate a block, which slowed down transaction confirmation time.
- As a result of 1) the drop in hashrate, and 2) the massive trading volume in the last few days, Bitcoin fees skyrocketed to over $10 on average and there are more than 150,000 unconfirmed transactions at the time of this writing.
- Trading volume for Bitcoin Cash was over $9 billion in the past 24 hours, even higher than Bitcoin.
The parabolic move in Bitcoin Cash makes sense but probably very few people anticipated the level of the move. There is certainly a lot of speculation, but we believe the price movement also shows the concern that some people have on the Bitcoin scaling issue.
If Bitcoin Cash can maintain at this level, some people will wonder which one is the real Bitcoin and this is not good for Bitcoin’s branding.
It is very hard to see how this will play out, but we will do our best to bring the most informed and up-to-date information to you.
SegWit2x Was Called Off: https://lists.linuxfoundation.org/pipermail/bitcoin-segwit2x/2017-November/000685.html
Summary of Devcon 3: https://davidburela.wordpress.com/2017/11/06/devcon-3-report-day-4-p2p-tech/
Parity’s multi-sig wallet was exploited again, freezing 500,000 Ether indefinitely: https://www.cryptocoinsnews.com/i-accidentally-killed-it-parity-wallet-bug-locks-150-million-in-ether/
CME Unveils Bitcoin Futures Contract Specifications: http://www.cmegroup.com/trading/bitcoin-futures.html?utm_source=twitter&utm_medium=social_post&utm_campaign=bitcoin&utm_source=TWITTER&utm_medium=social_post&utm_content=20171107&utm_campaign=None
BP, Shell lead plan for blockchain-based platform for energy trading: https://www.reuters.com/article/us-energy-blockchain/bp-shell-lead-plan-for-blockchain-based-platform-for-energy-trading-idUSKBN1D612I
Articles From Crush Crypto
Crusher of the Month – Hedge Token: https://crushcrypto.com/crusher-of-the-month-hedge-november-2017/
Crush Crypto Core October 2017 Report: https://crushcrypto.com/ccc-october-2017/
Analysis of Bloom ICO: https://crushcrypto.com/analysis-of-bloom/