Bitcoin and Bitcoin Cash are back at it again as Coinbase / GDAX launch Bitcoin Cash trading. In the first 3 minutes of trading, Bitcoin Cash spiked over $9000 to $9500 before GDAX halted trading. At the time of writing this description, trading is still halted and Bitcoin has recovered above $17,000.
In this video, I expected to make a recording just talking about the flash crash that Bitcoin experienced down to $14k, but instead was treated to watching these first trading minutes live while recording.
Many people speculate that the Cashening 2.0 might happen as the Bitcoin network is being 'attacked' and there is a coordinated effort to make Bitcoin seem awful surrounding its difficulty adjustment. While this is possible, it wasn't particularly difficult to manipulate Bitcoin Cash's price given the thin order books (low liquidity), offering a great manipulation opportunity by whales regardless of coordination.
Once trading resumes, Bitcoin Cash will likely crash on GDAX to the levels it is trading on other exchanges. While a pump might happen again, there is very low probability of a Cashening. While Bitcoin Cash is currently more useful as a transaction medium (purely in that it has lower transaction fees, not that it is accepted by more businesses), Bitcoin has way more capital inflows from traditional investors in addition to crypto enthusiasts.
I hope you all took advantage of the opportunity to make some quick money. Buffett's quote always holds true - Be greedy when others are fearful and fearful when others are greedy.
On a side note, Bitcoin is becoming a more attractive RELATIVE purchase as its dominance continues to decline below 50%. As such, I have taken this opportunity to increase my position in Bitcoin slightly, shifting some funds from some altcoins I own. Thank you for watching as always.
Note: I will respond to most relevant comments here on Steemit if you were interested in starting a discussion.