Bitcoin

Bitcoin Dropped 10% After Coinbase Added Support for Bitcoin Cash

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The world of cryptocurrency just got a little bit more interesting.  We wrote an article on the unknown “inventor” of the currency the other day.  Which gives the currency a ton of mystery.  Now, the online platform Coinbase is adding support for Bitcoin Cash.  Which isn’t necessarily a good idea in this case.  Let’s talk about Coinbase for a moment.  If you aren’t familiar with it, Coinbase is a secure online platform for buying, selling, transferring and storing digital currency. If you go to Coinbase’s website, you will see that you can buy – Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.   Coinbase is available in a ton of countries – 32 to be exact – I am not going to list them in here, but I do want to make mention that support for Bitcoin Cash wasn’t available until now.

Also, Coinbase has been near the top of the charts on the App Store for a while now.  Back in August, Coinbase created a Bitcoin “fork”.  What is a fork you ask? Coinbase describes it as:

A “fork” is a change to the software of the digital currency that creates two separate versions of the blockchain with a shared history. Forks can be temporary, lasting for a few minutes, or can be a permanent split in the network creating two separate versions of the blockchain. When this happens, two different digital currencies are also created.

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Essentially, by adding support for Bitcoin Cash, you will now be able to withdraw your Bitcoin before 2018.  Which isn’t good news for Coinbase.  This is what they announced yesterday.  If you’ve been using Coinbase since it launched, you wouldn’t have received any Bitcoin Cash for every Bitcoin that you owned.  If you used a different wallet, however, you would have.  What’s incredible about Coinbase is that they’re crediting accounts with a Bitcoin Cash balance, which is equal to their Bitcoin wallet – at the time of the fork.  On their website, they state:

Bitcoin Cash was created by a fork on August 1st, 2017. All customers who held a Bitcoin balance on Coinbase at the time of the fork will now see an equal balance of Bitcoin Cash available in their Coinbase account. Your Bitcoin Cash balance will reflect your Bitcoin balance at the time of the Bitcoin Cash Fork, which occurred at 13:20 UTC, August 1, 2017.

Bitcoin

Due to this news, Bitcoin actually dropped by over 10%.  However, Bitcoin Cash actually skyrocketed.  Now, some are describing Bitcoin Cash as the “clone” of the original Bitcoin.  Except Bitcoin Cash has some added improvements, which allows for faster processing. This is leading some to call it the “true” Bitcoin.  Coinbase’s servers are struggling to keep up with the traffic, since the announcement.  In order to keep the servers running, the company has currently disabled buying and selling of Bitcoin Cash for some users.  As soon as the traffic on the server settles down a bit, Coinbase will bring back those features. I mentioned in my previous post that I think this particular currency is a bit volatile and unknown at the moment, and this supports my theory behind that.  What do you think of it?

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