The Tale of Bitcoin Cash – from SegWit2x Cancellation to Coinbase Scandal
Back in early November the Segwit2x proposal, intended to increase Bitcoin’s block size limit to 2Mb through a hardfork, was cancelled. Mike Belshe, BitGo CEO, announced that SegWit2x would not be taking place due to lack of community support. This led to the price of Bitcoin and most altcoins to go down with the exception of Bitcoin Cash, a coin that was forked from Bitcoin at the time of SegWit activation.
An image explaining the most recent hardforks to the Bitcoin network
The Artificial Rise of Bitcoin Cash
After the unsuccessful attempt to hardfork the Bitcoin network, the SegWit2x supporters ended up joining sides with Bitcoin Cash. Together with this newfound support Bitcoin Cash price went up to almost $2000 a few days after SegWit2x cancellation was announced. The fact that Roger Ver, CEO of bitcoin.com and Bitcoin Cash supporter, dumped 25,000 Bitcoins on Bitfinex also had its impact on the price surge.
But it seems the price manipulation didn’t end there. Just yesterday Bitcoin Cash was listed for exchange in the Coinbase platform, a former SegWit2x supporter, leading to a massive Bitcoin Cash price pump. Without any specific previous announcement, Coinbase launched Bitcoin Cash at about $3,500 and just four minutes later the trade was suspended as Bitcoin Cash prices were quoted at about $8,500. Coinbase has since resumed the trade of Bitcoin Cash and stated that an insider trading investigation of its employees will take place.
Bitcoin Cash price manipulations have not interfered with the altcoin gaining support from users and is now probably one the fastest cryptocurrencies in terms of adoption. Some users and retailers have moved to Bitcoin Cash stating that Bitcoin is too expensive and slow to transact on. This indeed is true, as Bitcoin has become more a store of value that an electronic peer-to-peer cash system as Satoshi Nakamoto intended. Regardless of how the Bitcoin drama unfolds, the Coinbase incident could easily be prevented if people moved their cryptocurrencies to decentralized exchanges. By doing so users would regain ownership of their own money, just like Satoshi originally intended, and illegal activities such as insider trading would be prevented.