The real reason Bitcoin's price is falling: Coinbase pegged Bitcoin's price to Bitcoin Cash !!
I didn't want my first post after introducing myself on Steemit to be quite so controversial. However, today we have seen a massive downward movement of the price on Bitcoin and many are saying that it's a 'correction' or the 'Bitcoin bubble finally breaking'.
To anyone that is concerned over Bitcoin’s price going down, I urge calm and research. This is what has caused the price of Bitcoin to go down to the 15000$ range. And it’s very serious:
For the last 9 hours or more, Coinbase / Gdax have been pegging the price of Bitcoin to Bitcoin Cash at a rate of 0.2 BTC
- $3000 BCH : $15,000 BTC
- update 5pm: $3100 BCH : $15,500 BTC
- update 5:30pm: $3200 BCH : $15,900 BTC
- update 6:30pm: $3100 BCH : $15,500 BTC
One of the largest exchanges in the world is currently manipulating the market, by pegging Bitcoin’s value to another currency and, therefore, preventing the two markets from resuming their natural growth.
If this is intentional, then it is very serious and questions the ethics and motivations of both Coinbase / GDAX and Bitcoin Cash. No official statement has been released as of yet, but the damage has already been done.
Anyone with a conscience would boycott Bitcoin Cash and Coinbase now.
EDIT: here is a discussion on Reddit with both for and against arguments to whether the pegging on Coinbase affected the price of Bitcoin yesterday here and here
Research the background and activities of Roger Ver, the man pushing Bitcoin Cash together with Jihan Wu, the co-founder of the company Bitmain. Bitmain is :
- the world’s largest mining equipment company
- based in China
- and owner of two large Bitcoin mining pools
- including Antpool that commands 13%, a large chunk of the hashrate in the world
You will discover many interesting links and realise the dangerous power struggle between Bitcoin and Bitcoin Cash.
Especially the close ties between Roger Ver and Bitmain, the mining company - which now only accepts Bitcoin Cash as payment for their products. A clever push, considering how much influence they already hold in the cyrpto-verse.
Bitcoin Cash is a hard fork of Bitcoin, supported largely by Chinese miners and as a result:
This centralisation gives them a lot of power over the blockchain’s behaviour. In addition to that, they have control over a lot of wealth from years of Bitcoin mining with which they are now serving their own agenda.
ANTBLEED scandal
Not only that, Bitmain has openly admitted to using potentially harmful code in their mining equipment that makes miners vulnerable to having their machines turned off by Bitmain. The company tried to sell it as an improvement. But it can easily be used to target certain customers and groups for financial gains (see the article for details).
This happened in April, a long time ago for the internet to remember and bring to the attention of the thousands of new investors since November who don’t know this.
ASICBOOST scandal
If that wasn’t enough, Bitmain also openly admitted to using AsicBoost in their miners. AsicBoost gives an unfair advantage to miners that use it and Bitmain and its mining pools have rejected the Segregated Witness soft fork (SegWit), because it is prevents the covert use of AsicBoost technology embedded in their chips.
Bitcoin Cash is not Bitcoin
Roger Ver has now been on CNBC, where where he claimed that Bitcoin Cash is the real Bitcoin. Nowhere did they indicate during the interview the clear bias Roger Ver has.
During the same interview, he also told millions of Americans that Bitcoin holders should send their BTC to exchanges to be ready for the Bitcoin bubble bursting. Today, the price of Bitcoin Cash was pegged to Bitcoin on Coinbase, making the price go down. Interesting, right? What a self-fulfilling prophecy. And many shaky hands will likely follow, helping the downward trend.
Even if it were true that Bitcoin Cash offers some advantages over Bitcoin, the shady activities of its backers is a serious cause of alarm and a threat to the sustainability of cryptocurrencies and what they stand for.
Forbes March 21:
“certain technical upgrades, including a block size increase, require what’s called a hard fork, which runs the risk of creating two versions of bitcoin if not done with the full support of the community. Many consider this type of hostile hard fork a potential nuclear option in bitcoin — one that could destroy, or at least damage, the industry that, until last Thursday, had a $20 billion market cap”
Is This Massive Power Struggle About To Blow Up Bitcoin?
Max Kasier on RT November 18:
“Bitcoin cash is an alt-coin that has its fans just like many alt-coins. I don't think anyone who uses bitcoin's name and applies it to an alt-coin like bitcoin cash does is adhering to acceptable business practices. In other words, bitcoin's brand is being stolen by a competitor that calls itself bitcoin cash and this is outright fraud in my opinion, just like it's fraudulent to use Coca-Cola and Nike's name to sell soft drinks or shoes,” said Max Keiser
'Bitcoin is a gift from God to help humanity sort out mess it has made with its money' – Max Keiser
In conclusion: please research
- the creation story of Bitcoin Cash (Bitcoin ABC/Bitcoin Unlimited)
- the relationship between Roger Ver and Jihan Wu
- and the background of Bitmain, the mining company
And make an ethical decision about supporting them
I gave many links to get you started with.
The technological drawbacks of Bitcoin / Bitcoin Cash are out of the scope of this article. But if the technological drawbacks are your concern, then there are dozens of cryptocurrency projects without such ethical stains out there that deserve your support.
To anyone critical of this post, I want to say this: the point of Steemit and Quora is to offer quality content, so I'm not going to repeat everyone else - in all likelihood, you already heard all of the mainstream arguments like corrections, bubbles, Christmas, panic sellers, etcetera. In this post, I am offering balance to the views on what's going on, especially since the majority of people don't have time to closely follow the massive flow of information on the internet. The internet has a memory that is way too short anyway. So let's revisit and research the issues from our recent past.
"Those who do not remember the past, are condemned to repeat it"
George Santayana
If you like my work and appreciate the effort I put into writing my articles, you can upvote or send me a "token" of your appreciation :
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I would recommend you look at both sides of this story. Have you listened to any interviews with Roger Ver? He has a YouTube channel where he recently did an AMA answering many questions about Bitcoin Cash. The r/btc subreddit is also a good place to get an alternative perspective.
The Core developers and the company that fund them, Blockstream, have plenty of their own scandals.
Question everything.
Thanks for the link @adamantine, I will check it out. I agree on questioning everything, hence my article. I make the case to choosing more ethically, which could result in neither Bitcoin or Bcash being favoured. Merry Christmas!
I appreciate your openness, and your willingness to listen to another perspective. Please can I ask you to not use the term Bcash though. It's Bitcoin Cash. I think as you dig deeper and learn more about this whole situation, you will realise that it's really unfair and insulting.
Thank you for this post! I made a mistake, even after researching the prediction analysis of the BCH increase. On the day of the BCH hard fork (?), I actually sent a deposit to Coinbase, thinking it was a wise decision. There was a $31+ fee charged, and if I transfer it to anywhere, it will be another fee accessed of the same+- (Yesterday's fee amount. Which it will basically leave nothing from the deposit.
My attentions were to have it deposited in my BCH wallet, but the vendor could only send it to my BTC wallet. I am confused and do not know what to do. I feel that I will make another mistake, and basically came to the conclusion to leave it as is, or sell it real soon before my balance depletes more. And, with hopes of a u-turn happening soon.
Is there a particular exchange platform that you recommend?
I have enjoyed reading your post. You definitely have my up-vote, and another follower.
Hi @share4angels, thank you for your comment and I'm sorry to hear you are having this problem. It's very confusing times on Coinbase right now. You can keep an eye on BCH related updates on Coinbase here : https://status.gdax.com/incidents/51pnkvm843hq
You asked a good question. There are many new exchange projects coming out soon. I support Mothership, the Estonian ICO startup for a crypto exchange. I hope they do well and knowing Estonians, they are quite tech savvy, so I believe they will come out with a great product. It would be tied with the e-Residency system of the country and become the gateway to the EU.
Out of the exchanges right now, I like KuCoin. Small and up and coming, and they handled the Confido exit scam very sincerely. They don't do cash deposits though. For cash deposits, I would suggest localbitcoins, they operate globally and use Escrow to secure your funds while you wait for your BTC
Thank you for your upvote and follow (although I think the upvote didnt come through)
Thank you so much for your reply and information.
Thank you @gric
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Great job.Thanks for sharing.upvote from @stephenpaul
Thank you for your support, friend! Happy new year
Thats good to hear from you dear. With this post i can really tell some info about bitcoin
Right you said.
Thanks for the support, happy new year!
After reading this piece, I end drawing my take home from this statement "those who do not remember the past, are condemned to repeat it" thanks for this post, really you have touched something in me.
Im so glad to hear that @royalheir
Keep in touch and a happy new year!
Your post was upvoted and resteemed on @crypto.defrag