It has been a very busy last couple of weeks in Cryptoland. Bitcoin (BTC) has been fighting desperately with Bitcoin Cash (BCH), this fight is a fight of value which in turn attracts Miners who have the hash power that runs the system in the background.
Everyone saw the result of what happens when the majority of hashrate leaves BTC for BCH during November 12th, the BTC network mempool increased dramatically, peaking at nearly 180,000 transactions waiting to be processed. Alongside this, the average BTC fee rose drastically during this time breaking an all-time high average of $19 (£14.35).
This caused a bit chaos, on the BTC network and customers were prone to delays in service. SatoshiPoint apologizes for the inconvenience and hassles this caused you if you were trying to use the services at the time, unfortunately, it was beyond their control.
Since then the BTC network has calmed down a bit, the mempool has grown smaller and the average fee has shrunk to $12 per transaction.
CME coming to Bitcoin?
News of the CME (Chicago Mercantile Exchange & Chicago Board of Trade) coming to bitcoin might have also sparked new interest. The CME will allow traditional investors and entities to margin trade BTC which provide traders with more equity than they would have otherwise.
“Margining such a product in a reasonable manner is impossible” said Mr. Peterffy, the chairman of Interactive Brokers, the largest electronic brokerage firm in the US.
However, Mr. Peterffy believes that bitcoin futures could destabilize the “real” economy. With commentary from the Bank of America stating that any sharp value increase of Bitcoin (BTC) can be met with shorting it (selling against it), potentially with other derivatives. And that sharp declines in value can also be met the other way.
Interestingly this seems to indicate that some people think BTC can be held at a certain value. For whatever value Wall Street will place on Bitcoin (BTC), it seems that they will try to keep it at that value, or at the minimum try to keep BTC value growth at a steady slow pace against any sharp rises.
Bitcoin a Fraud?
Calling bitcoin a “fraud” is kind of like calling gold a “fraud”, or a stone a “fraud”. They are inanimate (non-living) objects, or in the case of bitcoin a digital object with no physical form unless you integrate it into something physical, such as a coin or a paper wallet or similar. Fraud is something that an individual or an entity (normally a business) does.
However, this did not stop JP Morgan CEO, Jamie Dimon from recently calling Bitcoin a “fraud”. A few days later it was reported that JP Morgan finally settled with the Department of Justice (US) for $13bn for its own massive fraud during the 2008 scandal.
Whereas bitcoin is not a “fraud”, users and potential users should make sure they do their due diligence and are fully aware of fees and congestion. This way you will not be caught by surprise if either affect you.
If there are future high levels of congestion then Satoshipoint will do its best to serve its customers in as timely a manner as possible, but please be aware that some things are beyond their control (such as the miners). In further instances of this we ask for patience and apologize ahead, all customers will be served as soon as possible.
And as always, only invest into cryptocurrency what you safely can.
Date Published: Tuesday November 21, 2017
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