Bitcoin Cash Plummets, Bitcoin Soars, Coinbase Offers Clarification

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After seeing its price increase to around $700 in the immediate aftermath of its arrival on the cryptocurrency scene, Bitcoin Cash quickly shed roughly a third of that value. Prices declined again on Friday, and the new coin is currently trading at $238 - with a market capitalization of just under $4 billion. As that currency’s price slipped, Bitcoin’s showed renewed strength as its price soared past the $3,100 mark late in the evening.

That action all occurred a day after Coinbase announced that it will now move toward offering support for Bitcoin Cash. The exchange had faced scrutiny and criticism from many customers who were upset about its decision to not provide them immediate access to the Bitcoin Cash that all current Bitcoin holders were provided when the coin was created. There were reports that several individuals and groups were considering lawsuits as a result of that decision.

In a blog post published yesterday, the company assured its customers that they would eventually get access to that digital currency. Coinbase's David Farmer attempted to ease customer concerns:

“1. Both bitcoin and bitcoin cash remain safely stored on Coinbase.

2. Customers with balances of bitcoin at the time of the fork now have an equal quantity of bitcoin cash stored by Coinbase.

3. We operate by the general principle that our customers should benefit to the greatest extent possible from hard forks or other unexpected events.

Over the last several days, we’ve examined all of the relevant issues and have decided to work on adding support for bitcoin cash for Coinbase customers. We made this decision based on factors such as the security of the network, customer demand, trading volumes, and regulatory considerations.”

Farmer also provided the company’s customers with an estimated time frame for receiving access to their allotment of Bitcoin Cash: January 1, 2018. Coinbase will apparently hold the currency until that date, and then plans to allow those clients to withdraw their coins.

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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