Bitcoin futures on the CME Group exchange reached the 13% limit down level on Wednesday after the price of the world’s largest digital currency …
Bitcoin futures on the CME Group exchange reached the 13% limit down level on Wednesday after the price of the world’s largest digital currency tumbled to a fresh 2018 low. According to a spokesperson from the CME, the pause came just before 2 p.m. Eastern Time where a two-minute observation was initiated. Should futures BTCX8, -14.96% fall 20%, a hard limit is enforced, meaning contracts cannot trade below this level. After a subdued two months of trading, spot bitcoin BTCUSD, -13.33% prices fell as much as 15% on Wednesday as traders bailed on their long bets once a key psychological level was breached. “From a technical analysis standpoint, as bitcoin’s price falls below $6,000 we’re seeing liquidation: stop-loss orders automatically going into effect and/or people trying to play the breakout,” wrote Mati Greenspan, senior market analyst at eToro.
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Bitcoin Cash undergoes scheduled upgrades via hard forks twice a year. … Therefore, the upcoming hard fork may very well split Bitcoin Cash into 2 …
As the Bitcoin Cash hard fork approaches its scheduled date of November 15, the 2 opposing sides — supporters of Bitcoin Cash ABC and supporters of Bitcoin Cash Satoshi Vision (SV) — are showing signs of just how big a deal the divide is. Both sides have strong arguments and impassioned support, but as yet it remains unclear which side will win and which will be defeated.
Bitcoin Cash undergoes scheduled upgrades via hard forks twice a year. However, the hard fork scheduled for November 15 is turning out to be much more antagonistic than usual.
This is due to disagreements between major players in the BCH community. Therefore, the upcoming hard fork may very well split Bitcoin Cash into 2 separate blockchains and cryptocurrencies, which will then be supported by the different BCH community camps
Bitcoin Cash ABC
The name of this protocol is BCHABC, which will remain as a continuation of the original Bitcoin Cash chain. Therefore, the original Bitcoin Cash vision as portrayed by Roger Ver will remain with BCHABC after the hard fork.
It appears that most of the Bitcoin Cash community, as well as the original developers, are in support of BCHABC. Also, BCHABC will be backed by Bitmain, a giant mining organization with a significant amount of hash power.
Furthermore, the cryptocurrency exchanges Poloniex and HitBtc have already facilitated trading of both BCHABC and BCHSV. Once the fork happens, users will be able to convert their pre-forked tokens to corresponding onchain coins.
At the time of writing, BCHABC appears to be winning the race, as it’s trading around $396 and BCHSV is trading around $114.
Bitcoin Cash Satoshi Vision (SV)
The name of this protocol is BCHSV, and it will be the alternative chain in the hard fork. The direction of this coin is endorsed by Craig Wright, scoffed at by many as “Fake Satoshi.”
The BCHSV chain will use and follow the original specifications outlined by Satoshi Nakamoto in the Bitcoin whitepaper, hence the name SV or “Satoshi Vision.” For as contentious a hard fork as this is proving, the only actual difference between BCHSV and BCHABC is that SV will have a much larger block size of a proposed 128MB block size for the network.
While Bitcoin Cash SV is less popular among BCH community members, it still has substantial support. For instance, the mining giant Coingeek will support BCHSV as soon as the hard fork takes place.
However, Coingeek’s Calvin Ayer has said he will support BCHABC if it ends up winning the hashrate war, so there are dissenting voices even among their ranks.
The BCH Hard Fork Controversy
As with most hard forks involving a prominent cryptocurrency, this one has come with its fair share of controversy. Earlier this week, Ver and Wright, each side’s largest proponents, exchanged strong words.
Wright, who has claimed to be the creator of Bitcoin, Satoshi Nakamoto (hence the nickname) – is believed to have written an email accusing Ver of hating Bitcoin and being an “enemy.”
Side with ABC; you hate bitcoin, you are my enemy. You have f–king no idea what that means. You Will. I AM Satoshi. Have a nice life. You will now discover me when pissed off. And, no. You Could have had proof. Your choice. F–k you.
Ver later claimed that he had been fooled by Wright, who led him to believe that his intentions with BCH were genuine and aligned with Ver’s, when in fact they were not. Ver released an explanatory video of his feud with Wright on YouTube and Bitcoin.com.
The Outcome of Bitcoin Cash’s Hard Fork
Due to the rivalries between the divided BCH community, it seems unlikely that they will resolve their differences and prevent the hard fork on November 15.
The BCH hard fork will most likely happen, and unlike Bitcoin’s hard fork last year, only one coin is expected to survive.
Which coin do you support in the impending BCH hard fork? Do you think both BCHABC and BCHSV will survive for quite some time? Or will one or the other die off shortly after the fork? Let us know in the comment section below.
Bitcoin is a very new technology, even though the concept that it brings to life is decades old. The double spending problem has been solved; this …
Bitcoin is a very new technology, even though the concept that it brings to life is decades old. The double spending problem has been solved; this means that it is possible to use a digital certificate to stand in the place of money and be sure that no one else can spend that certificate other than you as long as you hold it. This is an unprecedented paradigm shift, the implications of which are not yet fully understood, and for which the tools do not yet exist to fully take advantage of this new idea.
This new technology requires some new thinking when it comes to developing businesses that are built upon it. In the same way that the pioneer providers of email did not correctly understand the service they were selling for many years, new and correct thinking about Bitcoin is needed, and will emerge, so that it reaches its full potential and becomes ubiquitous.
Hotmail used familiar technologies (the browser, email) to create a better way of accessing and delivering email; the idea of using an email client like Outlook Express has been superseded by web interfaces and email ‘in the cloud’ that provides many advantages over a dedicated client with your mail in your own local storage.
Bitcoin, which will transform the way you transfer money, needs to be understood on its own terms, and not just as an online form of money. Thinking about Bitcoin as money is as absurd as thinking about email as another form of sending letters by post; one not only replaces the other but it profoundly changes the way people send and consume messages. It is not a simple substitution or one dimensional improvement of an existing idea or service.
As I have explained previously, Bitcoin is not money. Bitcoin is a protocol. If you treat it in this way, with the correct assumptions, you can start the process of putting Bitcoin in a proper context, allowing you to make rational suggestions about the sort of services that might be profitable based on it.
If Bitcoin is a protocol and not money, then setting up currency exchanges that mimic real world money, stock and commodity exchanges to trade in it is not the sole means of discovering its price. You would not set up an email exchange to discover the value of email services, and the same thing applies to Bitcoin.
Staying with this train of thought, when you type in an email on your Gmail account, you are inputting your ‘letter’. You press send, it goes through your ISP, over the internets, into the ISP of your recipient and then it is outputted on your recipient’s machine. The same is true of Bitcoin; you input money on one end through a service and then send the Bitcoin to your recipient, without an intermediary to handle the transfer. Once Bitcoin does its job of moving your value across the globe to its recipient it needs to be ‘read out’, i.e. turned back into money, in the same way that your letter is displayed to its recipient in an email.
In the email scenario, once the transfer happens and the email you have received conveys its information to you, it has no use other than to be a record of the information that was sent (accounting), and you archive that information. Bitcoin does this accounting on the block chain for you, and a good service built on it will store extended transaction details for you locally, but what you need to have as the recipient of Bitcoin is services or goods not Bitcoin itself.
Bitcoin’s true nature is as an instant way to pay (despite not being money) anywhere in the world. It is not an investment, and holding on to it in the hopes that it will become valuable is like holding on to an email or a PDF in the hopes it will be come valuable in the future; it doesn’t make any sense. Of course, you can hold on to Bitcoin and watch its value go up, and its value willgo up, but you need to have guts to weather the violent waves of selling and buying as the transition to an all Bitcoin economy gets under way. Remember also, that businesses that have a need to store Bitcoin need to be concerned about its value if their models are open ended and are exposed to the market. “Closed Circuit Bitcoin” models have control over everything and never need to worry about prices at exchanges. They can do all their business moving an unlimited amount of fiat with just a few Bitcoin.
Despite the fact that you can’t double spend them and each one is unique, Bitcoins have no inherent value, unlike a book or any physical object. They cannot appreciate in value. Mistaken thinking about Bitcoin has spread because it behaves like money, due to the fact it cannot be double spent.Misrepresentation of Bitcoin’s true nature has masked Bitcoin’s dual nature of being digital and not double spendable.
Bitcoin is digital, with all the qualities of information that make information non scarce. It sits in a new place that oscillates between the goods of the physical world and the infinitely abundant digital world of information, belonging exclusively to the digital world but having the characteristics of both. This is why it has been widely misunderstood and why a new approach is needed to design businesses around it.
All of this goes some way to explain why the price of buying Bitcoins at the exchanges doesn’t matter for the consumer. If the cost of buying a Bitcoin goes to 1¢ This doesn’t change the amount of money that comes out at the other end of a transfer. As long as you redeem your Bitcoin immediately after the transfer into either goods or currency, the same value comes out at the other end no matter what you paid for the Bitcoin when you started the process.
Think about it this way. Let us suppose that you want to send a long text file to another person. You can either send it as it is, or you can compress it with zip. The size of a document file when it is zipped can be up to 87% smaller than the original. When we transpose this idea to Bitcoin, the compression ratio is the price of Bitcoin at an exchange. If a Bitcoin is $100, and you want to buy something from someone in India for $100 you need to buy 1 Bitcoin to get that $100 to India. If the price of Bitcoin is 1¢ then you need 10,000 Bitcoin to send $100 dollars to India. These would be expressed as compression ratios of 1:1 and 10,000:1 respectively.
The same $100 value is sent to India, whether you use 10,000 or 1 Bitcoin.The price of Bitcoins is irrelevant to the value that is being transmitted, in the same way that zip files do not ‘care’ what is inside them; Bitcoin and zip are dumb protocols that do a job. As long as the value of Bitcoins does not go to zero, it will have the same utility as if the value were very ‘high’.
The current business models of exchanges are not addressing Bitcoin’s nature correctly. They are using the Twentieth Century model of stock, commodity and currency exchanges and superimposing this onto Bitcoin. Interfacing with these exchanges is non-trivial, and for the ordinary user a daunting prospect. In some cases, you have to wait up to seven days to receive a transfer of your fiat currency after it has been cashed out of your account from Bitcoins. Whilst this is not a fault of the exchanges, it represents a very real impediment to Bitcoin acting in its nature and providing its complete value.
Imagine this; you receive an email from across the world, and are notified of the fact by being displayed the subject line in your browser. You then apply to your ISP to have this email delivered to you, and you have to wait seven days for it to arrive in your physical mail box.
The very idea is completely absurd, and yet, this is exactly what is happening with Bitcoin, for no technical reason whatsoever.
It is clear that there needs to be a re-think of the services that are growing around Bitcoin, along with a re-think of what the true nature of Bitcoin is. Rethinking services is a normal part of entrepreneurialism and we should expect business models to fail and early entrants to fall by the wayside as the ceaseless iterations and pivoting progress.
Bearing all of this in mind, focussing on the price of Bitcoin at exchanges using a business model that is inappropriate for this new software simply is not rational; its like putting a methane breathing canary in a mine full of oxygen breathing humans as a detector. The bird dies even though nothing is wrong with the air; the miners rush to evacuate, leaving the exposed gold seams behind, thinking that they are all about to be wiped out, when all is actually fine.
Bitcoin, and the ideas behind it are here to stay. As the number of people downloading the client and using it increases, like Hotmail, it will eventually reach critical mass and then spread exponentially through the internet. When that happens, the correct business models will spontaneously emerge, as they will become obvious, in the same way that Hotmail, Gmail, Facebook, cellular phones and instant messaging seem like second nature.
In the future. I imagine that very few people will speculate on the value of Bitcoin, because even though that might be possible, and even profitable, there will be more money to be made in providing easy to use Bitcoin services that take full advantages of what Bitcoin is.
One thing is for sure; speed will be of the essence in any future Bitcoin business model. The startups that provide instant satisfaction on both ends of the transaction are the ones that are going to succeed. Even though the volatility of the price of Bitcoin is bound to stabilise, since it has no use in and of itself, getting back to money or goods instantly will be a sought after characteristic of any business built on Bitcoin.
The needs of Bitcoin businesses provide many challenges in terms of performance, security and new thinking. Out of these challenges will come new practices and software that we can only just imagine as they come over the horizon.
Finally, when there is no more fiat, and the chaotic transition zone between fiat and Bitcoin has been abolished, then everything will be priced in Bitcoin, and there will be no volatility, because no one uses anything other than Bitcoin to buy or sell. If you know any chemistry, this will be like a reaction’s reagents reaching equilibrium; you can shake it and stir it all you like; the reaction is over, and you’re left with the inert product. Right now, compared to the amount of fiat in the world, Bitcoin can expand and contract very rapidly over a large range, because it is small in volume. It can expand to what for many is an unimaginably high price, and then shrink down again. As it gets bigger and accumulates more mass (its price expressed in fiat), these fluctuations will become smaller and smaller. Through all of this, Bitcoin remains exactly the same; it is its users that are publishing numbers as a signal to react upon.
Today, Slovenia-based logistics startup, CargoX, launched its new blockchain-based platform. The company says its platform is the first open, neutral …
Today, Slovenia-based logistics startup, CargoX, launched its new blockchain-based platform. The company says its platform is the first open, neutral and accessible system in the shipping industry. While the startup platform is aimed at trucking and maritime interests, there is potential for future application down the road for airports and airfreight. According to CargoX, the […]
Bitcoin was getting demolished Wednesday afternoon, down more than 13% and at its lowest level in over a year.
The world’s largest cryptocurrency touched a low of $5,322 a coin, its weakest since October 2017, as widespread selling wreaked havoc on the crypto space ahead of the coming fork in the rival bitcoin cash.
On Thursday, bitcoin cash, the fourth-largest cryptocurrency by market cap, is set to experience a hard fork amid a fight that is playing out between its two biggest proponents, Craig Wright and Roger Ver.
“Both Roger and Craig are advocating a different version of Bitcoin Cash,” according to Mati Greenspan, the senior market analyst at eToro.
“The end result will most likely be a split in the network resulting in two different versions of Bitcoin Cash when both upgrades go into effect this Thursday.”
It has been a tough year for digital-currency investors, who saw prices explode in 2017 as cryptomania swept over the world. Bitcoin, for example, began 2017 worth less than $1,000 a coin before soaring more than 2,000% to a high of $19,511 a coin.
This year has been a different story, however, with the cryptocurrency’s value having plunged by 60%.