Coinbase And Bitstamp Will Not Support BCC - My Thoughts On The Situation
BTC Up On This News?
The bitcoin price has notably moved up today - the current value is around $2800.
It is hard to say exactly why it has increased but one contributory factor may be that 2 major exchanges, Coinbase (GDAX exchange) and Bitstamp, have come out against Bitcoin Cash (BCC).
BCC is the hard fork that ViaBTC (a mining pool and exchange) are planning on August the 1st. The release of the news about BCC a few days ago caused a mini crash in the bitcoin just as the price seemed to be recovering on the locking in of BIP 91.
According to the Bitstamp statement on their website:
"In the event of a User Activated Hard Fork (UAHF) on 1 August or thereafter, it is important to clarify that Bitstamp would not be in a position to support Bitcoin Cash (BCC), the coin associated with the Bitcoin Cash proposal. In Bitstamp’s view, BCC is an alt-coin and the decision to list BCC tokens remains at our sole discretion at all times.
If Bitstamp chooses to list BCC, we would decide at our own discretion on what course of action to take with balances deriving from the hard fork. BCC would also be subject to the same due diligence processes as for any other alt-coin, which requires time and careful planning. For this reason, Bitstamp is not in a position to support BCC, nor will Bitstamp be liable for any BCC sent to Bitstamp."
According to the email from Coinbase:
"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)."
So far most of the other exchanges have not actually talked specifically about BCC and have only put out statements saying that they will disable deposits and withdrawals of Bitcoin to protect their customers.
My Thoughts
The Kind Interpretation
If we interpret the motives of the creators in a positive light we might say that it is a bluff that is designed to create further impetus for an actual block size increase.
Although, Segwit will almost certainly activate in the next few weeks, there is doubt to how much scaling room it will create.
What is truly needed is an increase in bitcoin block size - this is the 2x part of Segwit 2x and will come in the form of a hardfork in mid November.
A kind interpretation of BCC may therefore be that it is an opening salvo in trying to put psychological pressure on those who might resist larger blocks, i.e. to see the 2MB block size of Segwit 2x as a compromise.
(BCC goes straight to an 8MB block size).
People may more readily accept 2MB blocks in November to avoid the risk of other splits.
The More Cynical Point of View
I am more cynical though. I see BCC as a ploy to make money when the market is in a vulnerable position.
This is confirmed by the way that ViaBTC is trading Bitcoin Cash futures.
I also reject the idea that BCC will be free money for holders of Bitcoin.
Any value that it has will come it's association with Bitcoin (even though I agree with the sentiment that it is little more than another altcoin which just happens to have the same transaction history as bitcoin).
Further there is a strong possibility that BCC will have a much shorter life than the average altcoin. - For one thing it will be much less secure than Bitcoin and a 51% attack on the network is a real possibility.
Secondly we already have a whole host of altcoins that can actually scale, have real world proven value and in many cases have superior technology.
Seen as an altcoin BCC is just not a serious contender. So in my opinion BCC will not last very long.
Free Money?
When BCC does collapse it will leave those naive investors who bought it thinking it had a future, holding an asset that has little or no value.
Indeed there is a strong possibility that it will be worthless as mining for it could completely collapse.
These people will ultimately pay the price for ViaBTC's money making scheme.
Those who think that the split will be giving them free money should take this into consideration. We already have a reputation for scams and this will play into that.
For this reason I have no plans to split my BTC off for free BCC.
That may be a poor financial decision but I would rather not contribute to people being scammed and that is essentially how I see it.
At some point we need to consider what is best for the community as a whole rather than just our own pockets.
I think it is, to some degree, the selfish mercenary attitude of parties like those involved with BCC that has held back greater cryptocurrency adoption and the more it continues, the longer we will hold ourselves back from going mainstream.
As always I may be completely wrong and BCC may become the next Litecoin. What do you think?
Thank you for reading
You've clearly not been on the bitcoin forums on reddit or bitcointalk for the last two years.
The bitcoin community has been screaming for a blocksize increase for years and recently the blocks got full and bitcoin went from being almost 90% of the total crypto cap to less than 40%. This was because blocks were full and transactions weren't going through unless you paid really high fees.
What makes this worse is that it by design of the Blockstream team that hijacked Core development. If you're not aware, Blockstream is funded by AXA, a multinational insurance giant and bail-out recipient and 3rd largest company in the world. AXA is absolutely against bitcoin as a p2p cash system. They are paying Blockstream to "block the stream"of transactions and build a patented system on top that only uses the real blockchain as a settlement layer for the banks and/or very rich. This isn't my opinion, they openly state it.
Bitcoin Cash is the result of the actual community that wants to scale bitcoin the way it was intended to. Its not a scam or trick to make money. Its regular people like myself that want bitcoin to become the p2p digital cash that frees us from ever having to use the banking system and their fake money again.
You clearly only see and read what you want to read.
No it's not. It's a cash grab. If the community were really interested in this they would have supported BU. They didn't. It may be in your interest to pretend otherwise but it is nothing to do with the ideals you are professing.
Well, its clear you're a shill when you are just making arguments that aren't backed by any facts.
Like this:
Argument: The community DOES support BU and BCC
Facts: BU has support of ~%50 hashpower and has almost 900 active nodes. BCC is trading at 20% of bitcoin's price PRE-FORK and already has more nodes than the segwit2x implementation, btc1.
Use facts, otherwise you're just trolling.
The only troll here has consistently been you. Either learn how to disagree with people in a civil manner or get muted and flagged.
That's nice. Disagree and you'll get kicked out.
Especially if you bring facts to an argument. ;)
ROFL FACTS? Nobody has a right to act like a troll. Sad that you don't understand the distinction, that said I wouldn't be surprised if you are just the same guy using a different account.
Facts. Do you know how to use them?
I invite you to come to the investing site http:btcpop.co
Drop on in, and say something along these lines, about bitcoin cash. You'd get torn to shred in minutes. :)
Why would that bear any relevance to anything? Hardly surprising that people on your chosen forum would have the same opinions as you. That does not make them right or correct. If you had anything of relevance to add you would have done it by now. Instead you have made two pointless comments.
My thoughts exactly...
I opened this article looking for a conversation about BCC not being supported by coinbase, and it turns out it is a small blocker looking to FUD on BCC...
Small transaction fees, fast confirmations. It astounds me that there are people who don't want that.
Sorry bud. I don't know if you are agreeing or disagreeing.
I don't have enough time for an hour long video. :D
Lol what bullshit. I am not a small blocker but to be honest it is hardly surprising that you guys would spread your crap here.
I completely agree with your sentiment. BCC will derive any of its value from association with BTC and BTC will suffer. Its extremely unlikely that both will be sucessful longer term. There is no new use case for BCC and it is just basically saying it is a better version of BTC. However, BTC has first mover advantage, which is also why it is so far ahead in terms of capitalisation, compared to other alts. The only real world dealings with crypto are via BTC and whilst I dont think it will continue like this indefinately, it will in the near term and that gives BTC a major advantage.
I expect either BCC to crash through the floor as everyone sells their 'free' coins, or for it to stumble along for 6months or so, slowly losing value until it eventually dies. This is not a comment on the standard of the product, rather on the economics of the situation!
I think it is a mone grab by ViaBTC that will blow up in their face.
Once everyone sell off their Bitcoin, its value will be near zero
which unfortunately might drag down the price of BTC
But BCC will survive for 6 months if only as leverage to make sure the 2x part of Segwit2x get implemented
I'm beginning to think you are right. I hope it does not damage
What a slap in the face to their customers. They are saying point blank "we will take all new coins you should get August 1st" or at least that's what it sounds like. These are exchanges we should never consider doing business with again. Financially unforgivable. Shame on you guys!
http://www.FlippyCoin.com is the #1 Cryptocurrency Exchange!
I'm not sure I agree. For example, an exchange that changes bitcoin to fiat would have to implement new wallets, processes and change its way of operation to habdle new coins, of which this is. It will open them up to more risk etc, all for a coin they may well thinknis going to tank and disappear. If BCC becomes dominant (unlikely in my view) then I'm sure they will be forced to start trading it.
For now, people should not be keeping coins in exchanges anyway, so it's a non issue. After 1 Aug if you want to exchange your BCC coins, just transfer to an exchange that will accept them and sell. No issue!
I think you are right. Excellent points.
I believe that this is all just an opportunity to buy current beaten down Altcoins.
I agree.
It seems like everyone is pumping bitcoin so they have an opportunity to benefit from exchanges like bittrex who are offering bitcoin cash to a 1:1 ratio.
What I'm fearful is the backlash and the rubberband effect it will have. I feel like people see no value in BCC, they only want it as they see it as a way to get free money so it will almost inevitably get dumped.
I guess we will have to wait and see but at the moment there is a huge altcoin dump and squeeze as people are craving to get them hands on some 'free money'.
However, with all this new money generated (if there is any) I think people instead of converting it to fiat may just convert it to all the altcoins that have dropped dramatically in value due to this bitcoin dominance growing.
Let's hope everything turns out to be a positive @thecryptofiend but I think it is pretty sketchy how people are willing to risk keeping their coins in exchanges just so they can benefit from BCC.
Bitcoin will rise until Aug 1st. The altcoins will fall at the same time as people transfer.
After the shapshot, btc will probably rise a little more when investers realise the sky didn't fall.
Btc-c will drop as people sell off their free money and the other alt coins will stabilise to the levels they were previously at.
I think that is exactly what will happen. Further long term holders who have huge amounts of bitcoin from the early days will likely dump it at any price in order to protect their investments.
Further I think there is a strong possibility of a 51% attack.
That is a possibility but it could also lead to a massive rise in Bitcoin too.
I think it will be positive except for the people who buy into to BCC - they could well lose their money.
Bitcoin Cash is going to die! Sell it as soon as you get it!
Great for bitcoin. But I wonder why mostly all altcoins moved down..
@hansen7... It is being suggested that owners of alt coins are selling so that they can buy Bitcoin AND receive "free" BCC on Aug. 1st. However I tend to agree with the author, @TheCryptoFiend, that BCC will fade away and perhaps very quickly.
Time will Tell... Cheers !!
Use HitBTC.com and I'll trade you my Bitcoins for your Bitcoin Cash.
Good point!
Good point. They may well be selling alts for this reason.
I think after Aug 1st you'll see the opposite as people sell BTC and BCC to get back into their original altcoin positions. Probably a few months later you'll see a slightly weaker BTC and a collapsing BCC.
Alt-coins are going to become a lot less relevant now that Bitcoin is being freed.
How's it being freed?
Bitcoin Cash is forking back to the original vision of bitcoin, rather than adopting govt-sponsored Segwit.
He believes that BCC will solve all the world's problems.
that's true people thinking they going to get free alt coins bitcoin is going to blow up in price I think over next couple days as everyone tries to get in and there all going to loose out in the end pure speculation that there going to be on the band wagon
Not sure but it does happen sometimes when bitcoin rises.
looks loke bittrex will support both or make sure btc hilders have both coins if there is chainsplit.
If BCC is worth anything significant, I'd like for Coinbase to sell and credit me a portion of the profits made off my Bitcoin. We'll see if that happens
I doubt it will on both points.
There is only one Bitcoin.
Exactly.
Thanks for sharing this great post. I hope this will help lot of people to take smart decision about weather or not they will keep their BTC in coinbase or any other site before 1st August.
Me too.