As the price of bitcoin continues to soar ever higher ($2806 high on Coinbase by the last count), reports are beginning to circulate of interface problems at some of the bigger exchanges — perhaps due to the sheer volume of punters wanting to get in on the frenzy, or perhaps due to the fact that some are bona fide broker dealers who clear the bulk of their trades off-blockchain and in so doing potentially run up not insignificant exposures.
Who knows. “Down right now” is not an exclusive crypto currency phenomenon (we’re looking at you Natwest). But Coinbase has been intermittently down for at least two days.
With an unprecedented amount of leverage in the bitcoin and altcoin market, a runaway rally that doesn’t seem to know when to stop, the biggest exchange still not facilitating dollar withdrawals and incremental reports about other exchanges encountering service disruption, it could just be there’s more to this than first meets the eye.
(Remember from 2008 how liquidity issues tend to cause a spike in the currency that’s in hot demand?)
Initial coin offerings risk damaging your financial health – FT
Why is bitcoin’s value surging – FT on Air (via Facebook)