Coinbase suffers outages amid bitcoin surge
The recent Bitcoin bull run has been pretty impressive.
Bitcoin exchange service Coinbase suffered outages throughout the week due to a sudden surge in usage of the cryptocurrency, which is now floating at a record high. Unfortunately, this sharp increase has come to an abrupt halt.
Cryptocurrencies have some way to go before they are a viable alternative to traditional currencies – gold for example has a value of around $8.2 trillion. “The demand has risen phenomenally and there is scarcity in supply”, said Sandeep Goenka, CEO of Zebpay, India’s largest Bitcoin exchange by volumes traded.
Smith does not recommend buying bitcoin on an exchange and instead points to platforms such as eToro as the best way for newbies to dip their toes into the cryptocurrency arena.
On Coinbase, one Bitcoin is now selling for $2667.53 as of press time on Thursday. The coin is traded 24 hours a day and the value fluctuates by 50 percent within a couple of hours, one of the few reasons that is it’s tough to set clear rules to levy taxes on it. The exchange said it was working to resolve the issues. Marketwatch published one portfolio manager’s “regret” chart, showing that an investment of $1,000 United States dollars in Bitcoin in July 2010 would be worth more than $35 million today. Coinbase is not alone in this regard by any means.
Users have presented various theories as to why South Korea’s exchange market is so varied, these ranging from capital controls to en masse arbitrage and even a “debt-fuelled bubble” economy. In the absence of bad actors, trading in bitcoin is too.
If you had bought into the cryptocurrency back in August 2015, when the Money Observer bitcoin round-up argued that the currency had bottomed after falling to a comparatively lowly $230 on the Coindesk bitcoin index, you would now be sitting on a return of 1,000%.
While this may seem like alien-speak to some, one thing is for sure. This explains why some people can place an order yet have it canceled within minutes.
According to Michael Harris, author of “Fooled by Technical Analysis”, bitcoin tends to be uniquely volatile, prone to extending periods of inaction followed by sometimes protracted periods of jarring price swings.