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