In the course of yesterday’s wild ride on the crypto market, in which the Bitcoin shot several times in succession through the ceiling, it has apparently come to isolated problems on the market. So the crypto trade did not always run smoothly and everywhere. What does that mean for the mass adaptation of crypto currencies?
The Bitcoin put on a rally beyond compare yesterday. Starting at just under $ 12,000, the cryptocurrency hurled one barrier after another and climbed to $ 18,300 by Thursday night before cooling off a bit. It was reported yesterday at 15,000 already possible reasons.
The extreme development on the crypto market posed some massive problems yesterday, Thursday. This was probably most evident in the Coinbase Exchange GDAX. As the company confirmed via its Twitter account , technical issues were a major challenge for the operator. Among other things, customers had trouble completing transactions that took extra time and logging into their CoinBase accounts. In the night from Thursday to Friday, the site was not reachable for about an hour. The reason given for this was the overload caused by a record transfer at Coinbase.
Coinbase is the largest platform for buying and selling crypto currencies in the US, and therefore the first point of entry and subsequent trading with Bitcoin and Co. This outstanding position has now been fatal to operators, as Coinbase and GDAX reach the limits of their technical capabilities met.
Also in other places there have been problems in the wake of the Bitcoin boom. Thus, the purchase prices of the crypto currency differed drastically. The Bitcoin price was listed at over $ 19,000 at the South Korean crypto exchange Bithumb at one time, while at the same time it traded on Taiwan’s bitfinex for under $ 15,000.
The infrastructural problems raise the question to what extent crypto currencies such as Bitcoin actually already have suitability for the mass market. As of today, neither the crypto currencies themselves nor the stock exchanges that operate on them provide the prerequisites to function without any compromises in the event of high fluctuation. If the currency itself is primarily the scaling problem, which is primarily due to high transaction costs and low transaction time, an incident like yesterday proves that the problem of the crypto exchanges is infrastructural. As of today, even market leaders do not yet have the capacity to ensure the flow of money beyond what they have been accustomed to. Only when this problem can be addressed, crypto currencies are really mass suitable.
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