Major Etherium Wallet Parity Freezes Funds - Daily Analysis - 11/7/17
General Daily Trends
Bitcoin
Today was a suprisingly stable day for Bitcoin given yesterday’s downward trend. Today’s high was $7,154, and the low was only around $7,045, a difference of only $109. The market cap also made a recovery today, surging to over $119 billion before dropping down back near today’s low of $117 billion. As of right now, the market cap seems to be increasing again.
Bitcoin is looking like it will bounce back from yesterday’s almost $500 drop in price relatively quickly, at least temporarily. Bitcoin’s market dominance is also remaining stable at about 60%.
The SegWit2x Fork is still the greatest short term threat facing Bitcoin, with there being a large chance of altcoins spiking in value as the fork grows ever closer. With any luck, the fork will not have a long term impact on Bitcoin, and either the 1x or 2x chain will emerge as the clear winner after a short period of time.
If this does not occur, and both chains are forced to struggle for dominance, the values of both could plummet as transaction fees and confirmation times continue to rise.
Bitcoin Cash
Today was another rather uneventful day for Bitcoin Cash, with the value slightly lowering, as Bitcoin Core made its recovery. Bitcoin Cash’s short term future regarding the fork could be extremely promising. The more unstable Bitcoin becomes due to the fork, the more growth and success Bitcoin Cash will see.
The high for the day was a modest $626. The low was $602, occuring near the beginning of the day. The market cap also saw nothing more than modest decline throughout the day, as expected.
It is important to note that Bitcoin Cash is the only Bitcoin branch relatively guarenteed to survive the fork, making it an extremely viable option to hold funds in. Given the large block size (8MB), nowhere near as much hashpower is needed to run effectively as is needed for either the Bitcoin 1x or 2x chains.
Etherium
Etherium is continuing to experience difficulty breaking the $300 resistance, seeing a steep drop in price from $304 to $290. This trend remains consistant with the past week or so, with Etherium continuing to test $300, before dropping back down to the low $290s.
In the news, Etherium has had a pretty bad day. The popular Etherium wallet Parity has uncovered a major bug in their system that could have led to funds being wiped from wallets. It affected all wallets deployed after July 20th. As a result, all funds (at least 600,000 ETH, or $150 million) have been frozen. This likely explains the sharp drop in price seen this afternoon.
DASH
DASH had a big day today, seeing growth of over 5% for the day (at the time of writing), finally breaking the $300 mark for the first time in more than half a month.
I don’t claim to know a ton about DASH at this time, so there’s not much I can confidantly say about it. However, you can be assured I am researching it extensively and it will begin showing up in more and more daily reports.
Major Events/Miscellanious
Parity Wallet Bug
The bug found in Parity should bring all of us down to Earth, in that while cryptocurrency is extremely secure, it is not yet perfect, and may never be. We must take individual precautions, and never put 100% trust in our wallets or exchanges.
Regardless, I feel like this issue will be resolved somewhat quickly due to its severity (probably within the next 24 hours) and Etherium will see nothing more than minor drops in price as some frightened users blame the currency instead of the wallet, which was at fault.
Bittrex on SegWit2x Fork
For those who don’t know, Bittrex, the third largest Bitcoin exchange, released a statement today regarding the upcoming fork (scheduled for November 16th).
“In the event of a chain split, ‘BTC’ will remain the existing Bitcoin chain with 1 MB blocks until the industry and ecosystem demonstrates a clear chain preference for Bitcoin. Bittrex will take all reasonable steps to ensure that customer funds can be preserved on both chains. Bittrex will make all reasonable attempts to credit our users chain split tokens. We will not recover incorrectly made cross chain deposits under any circumstance due to the lack of replay protection.”
No suprise here. Like many other miners and exchanges, Bittrex is remaining relatively neutral and is letting the market decide what the real Bitcoin is. As far as the statement says, however, Bittrex does not look like they will be freezing use of their service during the fork. Coinbase, on the other hand, clearly stated that “[they will disable buys, sells, sends, and receives for bitcoin approximately 8 hours before the fork. [they] will re-enable bitcoin services as soon as possible afterward” in order to protect users from SegWit2x’s lack of replay protection.
Further Reading
https://www.cryptocoinsnews.com/goldman-sachs-analyst-bitcoin-could-near-8000-mark/
https://paritytech.io/blog/security-alert.html
https://www.cryptocoinsnews.com/crucial-issue-central-bank-cryptocurrency-asap-pboc/
Final Note
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