Bitcoin Cash crazy price spikes

What stands behind crazy gains and losts of Bitcoin Cash price recently? Let's try to figure out
13 November

Created via hardfork, the Bcash cryptocurrency shows real crazy price jumps. From Saturday to Sunday, the BCH was able to takeover the 2nd place in Coinmarketcap ranking; Ethereum was locked on the 3rd. At that time, the average price of Bitcoin Cash reached $2426.20.

Top Ten Cryptocurrencies, 12.11.17
Top Ten Cryptocurrencies, 12.11.17

As you can see on the pic above, the marketcap of BCH reached almost $40B with $10B 24h volume. Let's look at the press time situation.

Top Ten Cryptocurrencies, 13.11.17
Top Ten Cryptocurrencies, 13.11.17

As you can see it now, Bitcoin Cash lost about 50% of its price and $17B of its marketcap. 

Bitcoin Cash Price chart
Bitcoin Cash Price chart

On the chart above, you can see the peak of BCH price, that exceeded the $2400 mark. But still, if we check the 7 day gain of Bitcoin Cash price, we will find out that it gained almost 100%.

On 12.11.2017, Bitcoin Cash accounts for more than 40% of the total trading volume in the cryptocurrency market. At the same time, the most actively traded BCH South Korean exchanges, especially Bithumb. Today, it is on the 2nd place with 31.68%, and still, South Korean exchanges are leaders. 

Bitcoin Cash trading volume
Bitcoin Cash trading volume

At the time of price spikes, the Bitcoin Cash production accounts for more than half of all hash capacities.

Absolute hashrate in exahashes per second
Absolute hashrate in exahashes per second 

Bitcoin Cash was and is actively mined by the F2pool, Antpool, Viabtc, BTC.com, Bitcoin.com, BTC.top, Supernova, Bitclub and number of unknown pools.

Latest Bitcoin Cash Blocks by Mining Pool (last 1000 blocks)
Latest Bitcoin Cash Blocks by Mining Pool (last 1000 blocks)

Along with the growth of hash-capacities aimed at mining Bitcoin Cash, the price, and with it the profitability of production of this "young crypto currency", grew significantly.

Daily Bitcoin Cash Profitability Against Original Chain
Daily Bitcoin Cash Profitability Against Original Chain

As you can see on the graph above, the significant spike of this parameter came along with price spike.

All this crazy jumps came along with the rapid growth of unconfirmed transactions in the bitcoin network, the number of which at some points exceeded 150.

Bitcoin transactions
Bitcoin transactions

Giant amount of unconfirmed transactions led to the decrease of Bitcoin network performance. Large number of transactions for small amounts with high system commissions. As a result, ordinary translations are moved to the end of the queue for confirmation.

In addition to slowing the operation of the bitcoin network, the accumulation of unconfirmed transactions has led to an increase in the average size of commissions. In the hope of a faster confirmation, some users assign commissions for transactions in the region of $ 15-20 and higher. Can this be an attack on Bitcoin network?

Reaction

Vitalik Buterin, co-founder of Ethereum, sincerely congratulated Roger Vera and Jihan Wu

According to some users of Reddit, the current growth of Bitcoin Cash is not healthy, but is "the greatest in the history of the Pump & Dump":

Some people are convinced that the main tool for manipulating the Bitcoin Cash exchange rate is the largest South Korean exchanges.

 

No Gold for you: wallets, that don't support BTG

List of the cryptocurrency companies, that does not support Bitcoin Gold
20 November

Bitcoin Gold hardfork implemented recently. As we all know, as always with new Bitcoin hardforks, those, who had original Bitcoin coins of their wallets, will be charged with new coins. Or they won't?

The most of the popular Bitcoin wallets support Bitcoin Gold. Among them:

  • Bittrex
  • YoBit
  • HitBTC
  • pool.gold
  • BitStar
  • BitBay
  • Coinomi
  • Freewallet
  • Guarda
  • bitFlyer
  • Coinnest
  • Minergate
  • Bitfinex

But there some wallets, that refuse to support Bitcoin Gold for some reasons:

  • Wex. nz
  • Poloniex
  • Jaxx
  • Shapeshift
  • Coinbase
  • Luno

Let's try to figure out, why these companies doesn't support BTG.

Wex

Wex is the reborn version of "well-known" BTC-e cryptocurrency exchange, which got a $110M penalty from US authorities for “for willfully violating U.S. anti-money laundering (AML) laws”. 

WEX. nz does not plan to charge Bitcoin Gold, but continues to closely monitor the development of Segwit2x.
 

Wex. nz statement (translated from Russian)

There are no additional details or reasons why the exchange took such a decision. 

Poloniex 

According to official statement of cryptocurrency exchange, BTG won’t be supported unless it had implemented replay protection.

We've stated in the past that the safety of our users' tokens is our chief concern. As such, we have refused to support a forked token unless it had implemented replay protection. We would like to further urge our users to be immensely cautious of any token that expects to be given private keys that control value on another blockchain. This is dangerous and unnecessary, even for an alt like BTG that seeks to distribute tokens using the state of an existing blockchain.
 

Poloniex Statement

It is worth noting that Bitcoin Gold team had already implemented replay protection, but still no BTG support by Poloniex.

Jaxx, ShapeShift

Jaxx, the popular multi-currency crypto wallet and the ShapeShift platform are not going to support Bitcoin Gold due to the lack of  fully formed consensus code, as well as the lack of implemented replay protection. Jaxx, however, is “monitoring the situation closely and with great interest”.

We do not currently have plans to support BTG in Jaxx. However, we will continue to monitor the BTG situation and will notify you of decisions we make here on our blog.
 

Anthony Di Iorio

Jaxx Team

Coinbase

Popular US exchange does not support Bitcoin Gold too.

We operate by the principle that our customers should benefit to the greatest extent possible from hard forks or other unexpected events. However, safety and security are also important considerations for any asset supported by Coinbase.

At this time, Coinbase cannot support Bitcoin Gold because its developers have not made the code available to the public for review. This is a major security risk.
 

Coinbase Team

Luno

Luno is cryptocurrency company, with exchange and wallets.

The Bitcoin Gold code is not currently in a sufficiently secure state, there was a suspicious private premine of tokens, it does not adequately support two-way replay protection, and it isn’t publicly available for review and auditing by Luno or other developers. For these reasons, Luno won’t support Bitcoin Gold.
 

Luno Statement