Clearing Up Some Misconceptions and FAQs About Bitcoin Cash

in #bitcoin4 years ago

Bitcoin cash forked yesterday when they mined their first block away from the main bitcoin chain. There seems to be a lot of confusion about some basic questions, so I wanted to clear them up in a post here.

The ticker for bitcoin cash is either BCC or BCH depending on the exchange, because BCC was the ticker for a different coin listed on some exchanges so they needed to use a different one. Currently most exchanges are not opening up outside deposits of Bitcoin Cash onto them , but if you held your bitcoin on the exchange, you would probably have been credited. They probably won’t open up deposits until the difficulty has fallen and more blocks can be confirmed.

The price that people are seeing is really meaningless because it only represents the internal market of the specific exchange you are looking at. Because outside coins cant get in, you will see many exchanges trading at vastly different prices. Until arbitrage can happen and coins can be deposited/withdrawn, we will continue to see this. The liquidity is also very small so one big person can knock out a large part of the order book.

Like I talked about before, the reason the blockchain is functional technically, but it is very “slow”. Because they forked off the original bitcoin code, they kept the same difficulty and until it adjusts block times will be very off. For example at the time of writing this, there hasn’t been a block found for hours, this means no transactions are going through. Every 12 hours, if 6 blocks or less are found, the difficulty will drop 20%, which happened in the last 12 hours, so in 6 blocks it will drop 20% and each block could potentially lower another 20% until the difficulty is sufficient to mine blocks at the targeted block time.

Getting the difficulty down could day a few days or a week depending on the luck of finding blocks, or the amount of hash power mining the chain. Until then, expect Bitcoin Cash to be mostly unusable and exchanges to not allow withdrawals. If they do allow withdrawals, they will probably require 6 or so confirmations (seems to be the standard) so it might take a day or 2 for exchanges to actually credit your coins.

If you held the coins on an exchange that credited them , you should have them, if you have bitcoin on a trezor or nano, their blogs have directions on how to claim them, although trezor seems to have a bug for the time being, but they are fixing it. Like I said before, it doesn’t matter much anyway because the chain itself isn’t processing transactions.

While bitcoin cash technically launched, it will realistically be a week or two until it is functioning to the capacity people want it to. To avoid bugs in exchanges codes or on wallets, I would probably just sit back and wait a few days if you are looking to sell. The price will most likely fall heavily when the chain becomes functional, but it will probably get less volatile in a month or so.

Thanks to @Elyaque for the badges


@calaber24p I am sure that there are those that think that because this is a fork, it will behave differently from an ICO. But, like an ICO, there will be upside for now, then the cruel truth that reality delivers will be reflected in price, followed by good ol' market forces.

Yes a lot of people don't realise that the currenct price really doesn't matter and it will most likely fall when it becomes fully functional.

Do u know good wallets to use to hold claim bcc now?

Trezor or electrum. But now that the split is over you can just send them to an exchange suppoting BCC (BCH). Like Bittrex, for example.

I agree with @alan1. I'm using Jaxx and Bitcoin Unlimited (From here until I can buy my own hardware wallet.

Good information. But if people are looking to sell, shouldn't they try to take advantage of the current high price instead of wait a month? or do you expect it will go up much higher still?

You cant sell unless you had your bitcoin stored on an exchange. If you could get into a market now, yeah I would say sell it and if you wanted to buy back in, do it later. However realistically you wont be the first to an exchange when people start dumping so its better off to wait it out until the price recovers a bit.

No one really knows what will happen with the price. Right now you can't buy them from any of the exchanges. You can only trade them if you already had them there, so I'm sure things will get bumpy for a while. Either way it was "free money." Me, for instance, I can't sell them yet. So, I'm waiting and seeing.

nice information and really i have some confusions but u really solve all but sir i saw bcc is very up today than others what u think about this is it many go up in short time or not

It is really hard to tell yet since most common belief was that BCC (BCH), wouldn´t succeed as most people wanted to "dump it" buy some altcoins, and wait for SegWit 2x, even Bitsatamp called it another altcoin, certainly it is but no doubt it has beaten most expectations in the first hours

People arent able to dump it though. They havent mined a block in over 11 hours and you cant get it to an exchange.

Where are the prices and volume coming from, then?

First block was mined yesterday at around 2:15 Central Time. I don´t know how long for the next block to be mined
@idealsceneprod good question I am not able to trade my Bitcoins on Bittrex.


hahahaha thats a GOOD question :)) The Dollars Dollars where are the Dollars coming from?

good information i hope i make a plan from ur inform about this but many of them sell in the current prize and it is big issue we purchase up than real prize,,and whats ur opinion which is best wallet now of bcc sir?

Well, I'm using 2 wallets. Jaxx who will natively support BCC/BCH soon, and Exodus. Since Exodus won't support it, I had to download the Bitcoin Unlimited wallet from here:

Yup, so true. Thanks for the post. A lot of people fail to realise that the dumping will happen once everyone is able to start withdrawing from the exchange

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I wonder if now is a good time to buy since it dipped so low. Seems to have found resistance at 190 area

Great advice everything will be super volatile until the markets have a chance to open up across the board. plus, once that happens you can almost guarantee youll see a mass sell off and profit taking.

Upvoted & RESTEEMED!

This is great information. Very good to know. Thanks for sharing :)

Its simply another coin i think

Thanks. It helps to understand the situation deeply.

Thanks for the insight knowledge. Now i know when to invest.