In the wake of the recent commotion and frenzy, Coinbase has issued a message on the blog. Despite Bitcoin's craziness, one could argue that the San Francisco-based cryptocurrency exchange is having more problems such as: failures, IRS threats, tens of thousands of new user requests per day, entering 500 sites The most important web in the world and for a glorious afternoon, becoming the most downloaded application in Apple's online store. However, its Gdax institutional platform fell or was disconnected when bitcoin was trading at $ 19,500, causing widespread panic at the worst possible time.
Titled "An important message from the Coinbase team", the exchange wishes to start on a positive note. "I could not be more excited about the explosion of interest in digital currencies." However, with success comes the ability to manage success as it "creates extreme volatility and stress in our systems".
The trading days of December 6 to 7, 2017 will be remembered. Approximately every hour, the new bitcoin quote prices reached record highs: $ 13,000, 14,000, 15,000, 16,000; until the reports announced a maximum of more than 19,000, and then retreated. Gdax fell or disconnected, but so did Kraken, and even the solid cold storage wallet Trezor apologized.
Bitcoin had a jump of $ 3,000 on December 7, causing the service to customers of the stock market to fail even in the possibility of logging into the accounts. It was a repeat of a few weeks ago when Bitcoin reached $ 11,000. The problems are frustrating for customers, but they also caused a surprise on Wall Street, which is seeing Gdax and others approaching Sunday's market debut.
"There may be a downtime that can affect your ability to trade," said the general manager of the exchange, Brian Armstrong. He "wanted to remind customers that access to Coinbase services could degrade or be unavailable at times of high volatility or volume. This could result in the inability to buy or sell for periods of time, "he wrote, encouraging customers to read their User Agreement.
The exchange that began six years ago now has more than 13 million users.
In an effort to urge investors to be more proactive, he reminded Cryptos users that "they are volatile and prices can go up and down". Due to the rapid change in the price of digital currencies, it is possible that some customers do not have sufficient sales limits in relation to the value of the total digital currency they store "in the stock market". The note ends with some fairly basic safety precautions and the usual commitment to improve next time.
Not to be left behind in the change warning game, Bitmex CEO Arthur Hayes was recently interviewed by Alice Lloyd George. When asked about volatility and the introduction of futures in the coming days and weeks, "Initially, due to the way these contracts are structured, they will actually increase the volatility of Bitcoin," he said. Next, Mr. Hayes detailed a scenario in which futures, which normally stop trading during weekends, are usurped by physical trading, the underlying transactions, which causes possible price confusion.
Ultimately, he explained, "people have been lulled by complacency with a market that keeps going up every day. They do not understand that this is an extremely volatile asset. It is not limited by national borders, "he said.