Bitcoin Fork: Kraken is Crediting Users with Bitcoin Cash, Other Exchanges Aren't

in bitcoin •  last year

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So if you want Bitcoin Cash the easiest way to get them is to send Bitcoin to Kraken or another exchange that will credit you Bitcoin Cash. (Remember there is always more risk leaving Bitcoin on centralized exchanges.) Otherwise if you control your private keys before the fork you can claim Bitcoin Cash by following a few instructions and setting up a new Bitcoin Cash wallet with the same private keys you have for your Bitcoin. You don't need to claim Bitcoin Cash right away either.

I just wanted to share my thoughts about the upcoming Bitcoin fork and its implications and some wild guesses about what's going to happen to prices. A fork of Bitcoin can happen when miners who run the Bitcoin software decide to use different software with different rules and want to accept different kinds of transactions as valid. Miners can essentially create a clone of the existing network, add new rules and allow everyone who owned Bitcoin in the existing network to spend transactions in the new network. Owners will own both Bitcoin and the new token -- in this case Bitcoin Cash. Users will be able to spend transactions in both networks, but after the fork each network will generate its own record of new transactions independently. Fundamentally the core Bitcoin network should remain as robust as it has been in the past. Bitcoin is more than just the code. It's the network, the brand, the ecosystem, the security, the hash rate/electricity etc. that gives it value. However outsiders and the media may perpetuate the idea that Bitcoin just doubled its supply of coins and scare new people away.

(Note: Forks also happen on a regular basis. Bitcoin miners receive transactions from users at different times than other miners and they all attempt to add a different set of transactions to the chain of blocks on the 'blockchain'. In this case the miners come to a consensus about what transactions are valid simply by determining who is on the longest chain and accepting that as the legitimate chain and rejecting others.)

So what's going to happen?
-Bitcoin Cash seems to have generated enough interest to have fairly significant perceived value. ~$300 or (10% of Bitcoin)
-Some large exchanges will be able to profit from Bitcoin Cash because they hold the private keys on behalf of customers. It is almost certain most exchanges will claim Bitcoin Cash.
-Customers may get upset and demand Bitcoin Cash from large exchanges especially if prices continue to go up
-There may be significant positive momentum for Bitcoin after Segwit locks in, but may not be enough to push Bitcoin passed its all time highs even though it's very close right now.
-The confusion surrounding Bitcoin Cash and the media making a big deal of it may create more tension and confusion. The media may generate the meme that Bitcoin's supply just doubled.
-The value of Bitcoin Cash and Bitcoin combined should be more than the value of Bitcoin.
-The recent price surge was probably based on people buying Bitcoin to get both Bitcoin & Bitcoin Cash, and will sell one or the other after Aug. 1st.
-We seem to be in a broader crypto bear market

In my opinion we still will experience downward pressure on general crypto prices because we seem to be on the downside of one of those typical Bitcoin boom/bear cycles. There will also be short-term confusion about Bitcoin & Bitcoin Cash. The recent surge in interest in getting Bitcoin before the fork to get Bitcoin Cash will stop. Segwit may be great, but may not help ease transaction loads much until the expected hard fork in November. The upside is Bitcoin seems to finally be moving past a multi-year standstill on Segwit & hardforks. That may be a huge relief to the Bitcoin community. Will that be enough? I don't think so, but I'll change my tune if Bitcoin breaks all-time highs with some good strength.

In the long run the value of Bitcoin + Bitcoin Cash combined should be more than if it didn't fork similar to how Ethereum & Ethereum Classic turned out. When you have two communities with a strong passion behind different visions, both systems are better off separate. That's part of the power of decentralization. In the short term the network effect may take a hit, but there will be more clarity of exactly what Bitcoin is and in the long run that's positive.

If you want more details about the Bitcoin Fork please read this article from Jian Li, the former CTO of 21.co He covers a lot of what I wrote in more detail. We'll also likely include a pre-recorded presentation about Bitcoin from Jian at the 100x Blockchain Investors Summit online webinar I'm organizing.
(Feel free to use coupon code: JDSTEEMIT20)

steemitimg.jpg

I'll also be running most of the workshops that will cover:

  • Blockchain Investing 101 -
    Getting started investing & trading / Basics of fundamental analysis
  • Trading Altcoins – Bittrex
  • Making Money Shorting in Bear Markets – Kraken
  • Trading Into Crypto Dollars in Bear Markets – Bitshares
  • How To Invest in Token Sales/ICOs
  • Trading with 0x/EtherDelta

We also have a beginner's course:
-How to buy your first Bitcoin/Ethereum

And also a workshop presentation on:
-How to Launch Your Token Sale/ICO

Hope you can make it. Please resteem this and let others know!

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I just wonder what Coinbase is going to do with all their Bitcoin Cash they kept from everyone.

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I agree that's the BIG question. I think if Bitcoin Cash prices go up and people realize how much value they could have gotten, there's going to be great pressure on Coinbase to give users Bitcoin Cash. I bet a supermajority of Bitcoin users on Coinbase aren't paying attention.. but that's probably going to change. When that does it's possible Coinbase will have to relent. That's big money and potential for lawsuits.

Just wanted to point out steemit has had at least 16 forks as documented in the white paper, and possibly up to 19 from what I've heard most recently. And we all obviously love steemit so there is no need to fear, nothing to see here really as far as "the fork" goes lol

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Yeah I agree that forks are not all that bad for most systems, but for Bitcoin it's probably better to minimize forks because it's seen as the most secure system. Less change is better and backwards compatibility is important.

Bitcoin is currently too slow and too expensive for general use. The plans presented do little to alleviate those issues. Those folks who promoted Segwit did so on behalf of vested interests which failed to correct the outstanding issues. $3 and 2 hours to transfer .15 BTC is rediculous. So bravo to the BTCC folks.

Personally, aside from holding some BTC for large purchases and wealth storage, I see LTC, DASH, and Monero as much better suited for daily transfer and privacy use.

Roger Ver, Tone Veys and the rest of the pompous indispensibles can do as they please. BTC served it's purpose of acclaimating the public to the concept of crypto currency. Now, it's time to put it out to pasture and let the innovators take over. BTC price will be five or six figures over the next several years, but the big profits will be with the alt coin innovators, or possibly even a new coin still in the barroom napkin stage!

Hey @steemrollin
I haven't seen much of you around lately. Hope your doing well and I haven't missed to much of your content. Great to see you keeping us up to date with the bitcoin developments.
SteemON!

I'll be interested in what the price of BTC is in the few days! It's over $2800 right now, which is crazy! I just hope everything doesn't correct to much after this spike.

I am impressed with you .. thanks information.semoga we can be friends well .. follow me @riansteem

That's very crazy.

valuable info i upvoted , thanks for keeping us up to date

This deserves some attention. Upvoted and resteemed :]

Don't take it to serious, just wait what happen. I bet, everything remains the same. In fact every time you make transaction transferring coin from your wallet to another, you are creating a new set of instruction in the network. And I agree, forks happen on a regular basis.

we need a decentralized exchange not run by a large company where we can sell p2p with protections, but still maintain control of our own private keys.

I'm getting 4 bitcoins on my wallet

Bittrex claim they are going to credit BCC to accounts holding BTC on their exchange:

If you have a Bitcoin (BTC) balance on Bittrex during the BCC UAHF time on August 1st, 5:20am PT (12:20pm UTC), you will be additionally credited the equivalent amount of Bitcoin Cash (BCC) on a 1:1 basis. i.e. 1 BTC on Bittrex held during the on-exchange snapshot will get you 1 BCC. BTC held on orders will also be credited. Only the BTC held on your account is eligible for BCC. Full details below.

https://support.bittrex.com/hc/en-us/articles/115000808991-Statement-on-Bitcoin-Cash-BCC

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Yes Bittrex should be fine too. Just not sure you can deposit new BTC there right now.

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Yeah that's right, transactions in and out have been suspended for the time being.

I cant sleep, Ill be up all night lol

Followed and upvoted, if you like my content pls follow me🌼

Good post, I can see a blood bath over the next few hours with wild swings all over the place

Bittrex is too

I thought bittrex was crediting accounts as well..

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Yes Bittrex will as well, but deposits may be disabled already.

Good postt my friend @steemrollin
upvote