What happened with Bitcoin Cash and Coinbase?

Posted December 23, 2017

To think investors weren't confused enough with the significant Bitcoin drop, Coinbase, a San Francisco-based digital currency exchange, announced Friday morning that had "temporarily" disabled all purchasing and selling.

Buys and sells on Coinbase, the largest cryptocurrency exchange in the U.S., were disabled for a little over two hours Friday amid a massive cryptocurrency sell-off. At that point, it was already well below the $19,783 all-time high it had hit the week before.

With that being said, I'm sad to report that it's not just Bitcoin struggling on Friday.

Chances are that if Bitcoin gets brought up in conversation, that conversation will go one or two ways: either the people discussing it will love it or they will hate it; either they will want to invest all of their money in the digital currency or they will argue that it is a speculative bubble. After its morning low, Bitcoin began to climb again on Coinbase. The company had said for months it would allow withdrawals of bitcoin cash on January 1, 2018, and notify customers of other changes beforehand. On Tuesday, Coinbase surprised many by announcing it was launching trading in the bitcoin offshoot, bitcoin cash.

Bitcoin's price has climbed back up to around $12,800 as of the time of publishing, and Coinbase noted that buying and selling may still be blocked.

As of 1:30 p.m. EST Coinbase is still down for most users. This week's losses in the cryptocurrency world represent a major test for the blockchain and cryptocurrency community.

On its status website, Coinbase said that the freeze was caused by high traffic.

Bank of Japan Governor Haruhiko Kuroda called the surge in bitcoin prices "abnormal" at a media conference on Thursday. The stock closed 11.2% lower at $24.52 a share Friday.