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Coinbase CEO here - apologies for the confusion on that.

I certainly wouldn't say we are treating it as a "shitcoin". I tweeted out a few thoughts here to share how I think about it:


Hope it helps. Thx!

Meanwhile, Kraken supports Bitcoin Cash from minute one:



Here's Coinbase's original statement, which seems to be exactly what the grandparent comment was saying: https://twitter.com/coinbase/status/890986442674941953

"Coinbase does not intend to interact with the Bitcoin Cash blockchain."

Thank you for linking the prior statement. I read it, and disagree with your conclusion that it's the same as the grandparent.

It simply says, not supporting BCC now, but might in the future -- we will not acquire the BCCs for Coinbase.

There is nothing to "acquire" - the private keys are the same, they and they alone already have control over the funds.

"Wait and see" is usually a reasonable stance for companies to take, but in the case of securities splitting in two, withholding the new securities until their value changes - potentially even keeping them yourself - really shows your hand.

Among other things, this split has thrown into relief the stances various exchanges take with regard to their clients, and anyone researching which exchange to use should take a good hard look at moves like this when considering who to invest with.

Then go to Kraken!

The point is, splits and civil wars cause customer confusion and are harmful for bitcoin adoption. Coinbase is throwing some political weight around by saying "We won't support BCH." Their competitors do, so are customers supposed to think it's a technical challenge to support BCH?

It's just strange that Coinbase either wasn't prepared or sees BCH as a threat. Balkanization of bitcoin is unnecessary. Why refuse to support what everyone else supports? https://twitter.com/Yelka_Pineda/status/891020902066003968

In my view, as a bystander with no skin in the game, the BCH fork is very much political, so there's no reason why exchanges should not take a political stance in response. It's hardly a question of supporting what "everyone else" supports, Bitstamp has the same position for instance.

>the BCH fork is very much politica

There are political elements, for sure, but the overall reason for it is there are a genuine segment of people who believe segwit is kludge, and on chain scaling is the way forward.

Whether or not those people are correct, this chain represents their version of the bitcoin vision, dismissing it as a political move is a tad arrogant.

If you believe that splits cause customer confusion, and balkanization is unnecessary, then one way to help this problem is to use all your weight to ensure that BCH fails, not only to fix this split but also to demonstrate for any future splits that they will have little to gain.

Helping the split in any way (e.g. by making the split easier to use or by acknowledging it as a reasonable alternative) means facilitating future splits and future balkanization, driving down long term value of BTC.

> splits and civil wars cause customer confusion and are harmful for bitcoin adoption

I agree with this point, and I see Coinbase's comm as trust-building with their (perhaps nonvocal majority?) customers.

The future of this technology cannot work if you must understand the jargon and consequences of a fork (and whatever else can happen), and then form an opinion of your exchanges as a mainstream adopter based upon how they deal with these intricacies. Most people just want something easy to use. Coinbase has allowed that happy path to continue, and I trust them as a result of the manner in which they handled this event.

(Now, for people in-the-know, things are different. But I'd bet that Coinbase's target audience is not blockchain hackers.)

Why exactly should Coinbase support every new altcoin? I seriously can not understand your point.

Doesn't Coinbase reduce the amount of customer confusion by offering fewer cryptocurrencies to purchase?

It perhaps makes sense from a business standpoint: why support a new coin from day 1 instead of waiting for the ecosystem to mature? Coinbase already doesn't support other coins like XRP or Monero or whatnot.

It's a little different in the case of BCH, as it is with ETC. They aren't mere altcoins. They're forks, and if you owned coins on the chain before the splits, you now own those coins on both forks. Coinbase offers the illusion that you owned actual coins. To be fully faithful to the illusion, coin you owned on Coinbase before the split should have the same properties it would have if you owned the coins on their blockchains.

This is completely off topic, but does it bother anybody else that we live in a world where the CEO of any technologically savvy company disseminates announcements as a picture of text?

Well, that's kind of the de facto standard for tweeting large blocks of text that don't read well as a sequence of tweets.

I think the idea was more along the lines of "Remember blog posts?"

Do any screen readers do OCR or read the comment of a picture for sight impaired users?

It's better than the old days of hearing nothing except press releases.

An executive's Twitter is a press release. Let's not pretend they don't realize we're watching.

No more than a world where college-educated professional programmers communicate using memes and emojis.

It's merely what passes as presidential these days.

Bitcoin cash represents 7-8% of the value of a bitcoin pre-split. How is it user friendly to "tax" coinbase bitcoin holders by that amount? Is coinbase just going to sell those bitcoin cash for its own profit? Some transparancy would be greatly appreciated. Thanks

Answered here: https://twitter.com/coinbase/status/892499250273107968

Will Coinbase keep BCC coins for itself?

No. Coinbase does not intend to support or interact with the new blockchain in any way. If this were to change, Coinbase would make those coins available for customers to withdraw, not keep them.

Makes sense but if the value BCC is at sustains itself, it would make sense that customers see that value as considerable and lost if they can't reclaim it later on.

Ironically, not "interacting" with that chain only serves to create more dead coins and thus push up value. Imagine if the value grows considerably... customers might be changing their tune if they feel that they lost out and feel they were misinformed.

You can bet I'll be removing every last coin I have from coinbase as soon as all of this is over. They gave a whopping three days notice. For those of us who had our coins in a vault, which adds a 48 hour delay to any transfers, this gave almost no time at all to react. In my case, I wasn't able to get it out in time and it essentially means I just lost money. Coinbase of course has no way to get a hold of anyone. I just have to watch my money swirl down a drain.

3 day notice? Did you check your emails from coinbase? I got an email on 7/19 warning about the fork.

The email laid out the process if you want access to the fork.

I got an email mid July

Can you fix your exchange/company?

Downtime should be unacceptable and exceptional for a financial marketplace.

On Coinbase however, downtimes and unexpected behavior are common place, and happen multiple times a week.

It's outright fraudulent when you allow your employees to trade during those downtimes.

What the hell.

Appreciate your statement.

Many that left their BTC assets on CB in interest of your core benefits - simplicity, security - will watch with interest for further communication in the coming weeks as price of bt cash stabilizes.

That's fine but there is obviously demand for BCH trading and by not supporting it, Coinbase/GDAX is forcing otherwise happy customers onto competing platforms.

Definitely wish Coinbase had just taken care of it for me. Instead, I withdrew everything to a personel wallet and will be depositing my BCC to Kraken. I'll probably just deposit my BTC to Kraken as well since I'm going through the trouble. I like that Kraken will give me access to a bunch of other coins to get exposure to. On the plus side, all this is motivating me to deepen my understanding of the cryptocoin tech/ecosystem.

Did the same, but from. Bitstamp to Kraken (Bitstamp took the same position as Coinbase). Kraken supports USD now, which it didn't used to last time I traded there, so I'll probably just stick with Kraken.

I imagine most of the exchanges that didn't support BCH are going to lose a lot of customers over it.

Folks like us voicing this stuff may make them rethink things and they retroactively make it right for the people who didn't bother to be proactive. Which would then just add insult to injury for us! Well at least I got some good experience out of it...

Honestly this seems like an off shoot thread to try to submarine and try and give legitimacy to the fork while taking swipes at those that opposed it.

I didn't know much about the fork up until a few days ago, but I did know to make sure I unloaded everything off of Coinbase if I wanted to benefit and double my tiny little bit of BTC since there had been a notice for weeks now about how they won't support it and a cursory Google search showed what you needed to benefit.

...so update -- it came true. Coinbase has buckled under the backlash and will make everyone's BCC available to them. Your welcome to everyone who was too lazy to withdraw their funds. You didn't have navigate the byzantine manual process to claim your coins. :)

The same can be said for other cryptocurrencies besides BTC, ETH, and LTC...

But will you hand over the private keys for the wallets your customers have with you so that they can use the BCH, or will you only transfer money to another BTC wallet and so the ship has sailed?

Except it really is a shitcoin. A scam to ensure that the mining pools can keep exploiting ASICBOOST. Ignore it and move on in life.

Nice drive-by propaganda comment that ignores a massive amount of context and subtlety.

Except it doesn't, really. Cuts straight to the point.

Right, because leveraging efficiencies should be a prohibited activity in a "Free" Market system, where said efficiencies cannot be enjoyed by incumbents. Clearly the correct action in such a case is to limit innovation and remove advantages developed by non-incumbents.

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