Coinbase's Position On Bitcoin Hardfork
Update for customers with bitcoin stored on Coinbase
by David Farmer, Director of Biz Ops @ Coinbase, published on Coinbase's Medium blog
Full text:
This post explains what customers can expect from Coinbase in the event of a split (or fork) in the Bitcoin network. You can read more about what a digital currency fork is here.
Our first priority is the safety of customer funds. In the event of a fork, customer fiat currency (USD, EUR and GBP) and digital currencies (bitcoin, ether and litecoin) are safe.
On August 1st, 2017 there is a proposal to make changes to the bitcoin software. This proposal, known as Bitcoin Cash, is likely to create a fork in the Bitcoin network. This means that after August 1st, 2017 there are likely to be two versions of the Bitcoin blockchain and two separate digital currencies.
In the event of two separate blockchains after August 1, 2017 we will only support one version. We have no plans to support the Bitcoin Cash fork. We have made this decision because it is hard to predict how long the alternative version of bitcoin will survive and if Bitcoin Cash will have future market value.
This means if there are two separate digital currencies — bitcoin (BTC) and bitcoin cash (BCC) — customers with Bitcoin stored on Coinbase will only have access to the current version of bitcoin we support (BTC). Customers will not have access to, or be able to withdraw, bitcoin cash (BCC).
Customers who wish to access both bitcoin (BTC) and bitcoin cash (BCC) need to withdraw bitcoin stored on Coinbase before 11.59 pm PT July 31, 2017. If you do not wish to access bitcoin cash (BCC) then no action is required.
We plan to temporarily suspend bitcoin buy / sells, deposits and withdrawals on August 1, 2017 as the fork is likely to cause disruption to the bitcoin network. This means your funds will be safe but you will be unable to access your bitcoin (BTC) for a short period of time.
We will keep you updated on this event through our blog, status page and twitter.
Read the comments neloow the article. Also read Bitstamp's Position On Bitcoin Hard Fork.
Two major exchanges have decided not to support BCC.
What is your opinion?
Makes sense. Everything could get unstable or confusing for a minute, so the exchanges want to wait and see what happens for a day or so.
Closing transactions randomly and without warning is bad, but in this case doing it with plenty of advance warning seems reasonable to me.
It certainly makes sense from provider's point of view. They keep their service operational and stability.
On the other hand, commenters are stating that Coinbase is keeping their BCC. There are also reports that bitcoin withdrawals are not carried out.
Coinbase has stated that they are gonna keep their BCC, yeah. And they'll be closed for BTC on August 1st.