Coinbase and Gdax Reiterate Their Position on Bitcoin Cash: Njet!

Who would have thought Bitcoin Cash would most strongly be opposed by none other than Coinbase, an exchange whose CEO has so tirelessly, so loudly, advocated for bigger blocks over so many months.

Just if anyone was slightly unclear or had any doubt whatever, Gdax has made a reiterating statement, largely mirrored by Coinbase, which says in definitive terms:

“If there are two separate digital currencies  – bitcoin (BTC) and bitcoin cash (BCC)  – customers with bitcoin stored on GDAX 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).”

Astonishing. Coinbase bitcoin holders, unlike any of the other bitcoiners, will not receive around $400-$500 worth of BCC per bitcoin. Angering both small blockers and big blockers because regardless of their views, money is money, so who on earth wouldn’t want some.

As such, we’ve previously speculated they may change their position, which they do sort of imply in stating the reason for their decision is because “it is hard to predict how long the alternative version of bitcoin will survive and if this will have future market value.”

But it is probably safer to take them on their word and withdraw as soon as possible to a wallet you hold or to one of the many bitcoin exchanges that will either give you Bitcoin Cash or allow you to trade it.

Current exchanges and wallets that support Bitcoin Cash

But why is Coinbase, and its exchange Gdax, taking such a hardline approach? An approach that would probably not stand in any court of law as they are in effect appropriating property that belongs to another.

We don’t know and find the complete u-turn very puzzling. You could say they are trying to keep things simple and not confuse their new customers, but if their customers understand the difference between BTC, LTC and ETH, all three traded there, it’s hardly rocket science for them to understand BCC has value too.

Moreover, not listing it for trading is one thing. Appropriating assets that are currently valued at some $400 each is quite another. So, perhaps the reason might be more cynical as, after their efforts to increase the block-size failed, they seemingly started backing ethereum.

As such, they may consider BCC as a competitor to ETH, although the two are very different in many ways and can be quite complementary. But in a different line of reasoning it is easy to see why they might reach different conclusions.

Although it may well be the case they are playing some clever chess, whether they know it or not, as their first statement on Bitcoin Cash had the effect of everyone suddenly realizing there is this Bitcoin Cash thing.

Moreover, their reiterating statement emailed to some 5 million customers might also act as a double advertisement for Bitcoin Cash.

But, we’re not sure whether they’re that clever. So simplistically taking them on their word, their astonishing statement shows just why Bitcoin Cash is so strongly supported by many.

The bitcoin “elites” have declared “consensus” after a closed door meeting of some ten guys in New York, but ten people doesn’t make a “consensus.”

Consensus is what we will see on August 1st and shortly after when everyone is to be shown that bitcoin is truly decentralized, that no secret meeting can order its direction, that no group or individual can call the shots.

That there are no “elite” bitcoin developers that steer or control bitcoin’s direction, only code. Code that anyone can write and launch, giving the free market the choice it wants, with the ultimate 51% thus passing judgment, and they alone.

 

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