On August 1, Bitcoin cash, a hard fork concept led by Chinese bitcoin mining pool ViaBTC, was forked and hours later, ViaBTC mined the first Bitcoin cash block. Bitcoin cash, which was created by a bitcoin mining device producer, struggled to gain acceptance from the industry, exchanges and organizations. However, its marketplace cap has fallen below five billion dollars while the bitcoin price has installed its new all-time high at $3163.
Joseph young posted in Twitter on August 5:
“#bitcoin price formally breaks all-time high at $3111: new worldwide average is $3060. Likely factors: SegWit + institutional investors.”
For all bitcoin holders which have had bitcoin on non-custodial wallet systems have already been credited with Bitcoin cash. For customers on exchanges and custodial systems, which deal with personal keys for their customers, every bitcoin and cryptocurrency exchange is dealing with the Bitcoin cash hard fork otherwise. Coinbase as an example, the world’s biggest wallet platform and the operator of main cryptocurrency exchange GDAX, introduced that it will credit Bitcoin cash to all consumer accounts by January of 2018.
David Farmer, the director of communications at Coinbase, stated:
“During the last several days, we’ve tested all the relevant problems and have decided to work on including support for bitcoin cash for Coinbase customers. We are making plans to have assist for bitcoin cash by January 1, assuming no extra dangers emerge during that time. As soon as supported, customers might be capable of withdraw bitcoin cash. We’ll make a determination at a later date about including buying and selling assist. Within the meantime, customer bitcoin cash will stay properly stored on Coinbase.”
Many customers and traders remain unhappy with the selection of Coinbase to credit consumer accounts with Bitcoin cash after almost five months since the execution of the Bitcoin coins hard fork. However, in step with bitcoin analysts and professionals such as Tone Vays and Paxos principal architect Jimmy song, such precaution is important and investors have to be extraordinarily cautious throughout the process of claiming Bitcoin cash. Tone Vays, a distinguished bitcoin trader and nicely respected analyst within the cryptocurrency sector, mentioned that claiming Bitcoin cash with non-custodial wallet systems including hardware wallets, paper wallets and on-line wallets could impose protection dangers as they involve private keys of bitcoin wallets. When private keys are exposed, bitcoin may be stolen from customers wallets.
If the Mt. Gox hacking incident is taken as an example, WizSecurity found out that a hacker operating carefully with Alexander Vinnick, the owner of now-defunct bitcoin exchange BTC-E, stole the wallet.dat file from the centralized systems of Mt. Gox and like that, $2.21 billion in bitcoin were stolen. Therefore, because the manual claiming process of Bitcoin cash requires the managing of private keys, traders need to alternatively keep onto bitcoin, anticipate the Bitcoin cash marketplace to stabilize, more Bitcoin cash wallets to emerge after which cash out or exchange their Bitcoin cash.
Tone Vays mantioned:
“Right now, my backup is pretty secure. I know there’s one backup in a Mac that doesn’t activate, and another back up on a couple of USB thumbdrives. I’m not in a rush to get this bitcoin private key out because now I realize it is safe. The moment I plug this USB drive to some computer, the moment I get it out, the moment, I change the wallet.dat file, I bring this bitcoin into the world and that scares me. I’m actually maintaining my bitcoin private.”
For customers and traders that stay unclear and insecure about Bitcoin cash, all customers of bitcoin already have been credited with Bitcoin cash. The difference among exchanges and non-custodial wallet systems is that because exchanges manage the private keys of customers, they control Bitcoin Cashof their customers and may decide when to credit them to consumer accounts. For customers on non-custodial wallet systems, Bitcoin cash has already been credited. Another main motive to wait until the Bitcoin cash marketplace stabilizes is that as of modern, there exists no valid and secure Bitcoin cash wallet. Therefore, whilst Bitcoin cash is withdrawn from a wallet or an exchange, there’s no opportunity Bitcoin cash wallet that customers can use apart from exchanges that assist Bitcoin cash and Bitcoin buying and selling to store Bitcoin cash.
A few main bitcoin exchanges such as Kraken based within the United States and South Korea’s second biggest bitcoin exchange Korbit support Bitcoin cash and Bitcoin trading and provide wallet services. Trezor, the most famous and extensively used bitcoin hardware wallet, has additionally integrated beta Bitcoin cash wallet for customers to withdraw or store their Bitcoin cash but none of the abovementioned Bitcoin cash wallets are secure as of now. To sum up, for investors and traders of bitcoin, it will be more secure to really hold onto Bitcoin cash and wait until the Bitcoin cash marketplace stabilizes