coinbase

Bitcoin exchanges Coinbase and GDAX added full support for bitcoin cash on Tuesday evening, and the rollout did not go smoothly.

Bitcoin Cash Price Explodes After Coinbase Listing

Earlier today, Coinbase announced in a blog post that it had added full support for bitcoin cash, the third-largest cryptocurrency by market cap, enabling users to buy, sell, send, and receive the coin on both Coinbase and GDAX, its professional trading platform. Customers who had coins stored on the exchanges at the time of the fork also received access to their airdropped funds.

The bitcoin cash price surged to record levels in response to the announcement, reflecting the fact that Coinbase’s brokerage service is one of the primary ways in which new users in many countries — the U.S. in particular — purchase cryptocurrency. Some analysts attribute the recent litecoin and ethereum rallies, for instance, to their presence on Coinbase amid an explosion of new user registrations.

bitcoin cash price
Source; CoinMarketCap

Within hours, the global average bitcoin cash price had jumped from $2,300 to $3,000, and it swelled as high as $3,813 before settling down to a present value of $3,224, according to the BlockExplorer price index. This movement represented a single-day increase of 47 percent and lifted bitcoin cash’s market cap to nearly $55 billion.

A Messy Rollout

The news was a huge boon for bitcoin cash proponents, as it further cemented the coin as a top-tier cryptocurrency and made it more accessible to new investors, many of whom likely remain unfamiliar with it.

However, for the company, the rollout could not have gone much worse.

Coinbase’s pricing data comes from GDAX, where the bitcoin cash price quickly — and inexplicably — shot up to $8,500 before the exchange shut down BCH trading and cleared the order books just minutes after their launch.

bitcoin cash price
Source: Coinbase

At press time, GDAX’s BCH markets remained offline, with the last posted trade priced at $9,500. Coinbase, however,  had adjusted the bitcoin cash price down to $3,193, a level that corresponded to the global average.

The rollout left users confused — and enraged — and scores of frustrated users took to social media channels to vow that they would cease to use either Coinbase or GDAX.

It is likely that cooler heads will prevail once GDAX corrects whatever issue caused the price to leap to $9,500 and launches stable BCH markets. Nevertheless, the incident marks yet another public relations headache for Coinbase following a year of unprecedented expansion that has been accompanied by significant growing pains.

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bitcoin cash price

The bitcoin cash price climbed approximately 20% on Wednesday following the announcement that its network will undergo a hard fork on November 13 to update its consensus algorithm.

Bitcoin Cash to Hard Fork on November 13

Earlier this week, Bitcoin ABC announced that it would release bitcoin cash software that would activate a hard fork — a protocol upgrade that is incompatible with legacy software versions — on November 13. This will be the cryptocurrency’s first official hard fork since August 1, when it was created by forking the bitcoin blockchain.

During its first three months, bitcoin cash has been plagued by severe hashrate and blocktime fluctuations, problems that stem from the structure of the network’s difficulty adjustment algorithm (DAA). Under the network’s current consensus rules, miners have been able to exploit the DAA to ensure maximum profitability, causing inconsistent blocktimes and a rapidly-inflating coin supply.

The proposed hard fork updates the DAA to adjust dynamically to rapid hashrate shifts and target a mean block interval of 10 minutes, with the intent of bringing stability to the network — and the cryptocurrency’s economic prospects.

Although there is agreement that the DAA needs to be upgraded, there has been some dissension within the community about the process through which Bitcoin ABC proposed the fork. Bitcoin Classic developer Thomas Zander was particularly critical, accusing Bitcoin ABC of favoring the DAA proposed by one of its developers and making the decision behind closed doors.

Bitcoin Cash Price Posts 60% Weekly Gain

Nevertheless, consensus appears to be coalescing around Bitcoin ABC’s proposal, preventing a disastrous situation in which bitcoin cash would undergo a blockchain split and splinter its community into competing portions. This development restored trader confidence in the bitcoin cash price’s short-term prospects and enabled the cryptocurrency to resume the bullish trend it began last week.

After beginning the day at $440, the bitcoin cash price rose nearly 20%, fueled by heavy volume on South Korean exchanges. Before long, bitcoin cash crossed the $500 threshold,  and it has since extended to a present value of $521. Bitcoin cash has now posted a 7-day gain of nearly 60%, enabling its market cap to swell to $8.7 billion. Bolstered by this advance, bitcoin cash seized the third spot in the market cap rankings from ripple, which is currently valued at $7.4 billion following a daily decline of 4%.