Bitstamp Comes Out Against Bitcoin Cash

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Bitstamp, currently the fourth biggest bitcoin exchange with trading volumes of around $30 million, hast stated they will not support Bitcoin Cash.

“If Bitstamp chooses to list BCC, we would decide at our own discretion on what course of action to take with balances deriving from the hard fork,” they say, before adding that “Bitstamp is not in a position to support BCC, nor will Bitstamp be liable for any BCC sent to Bitstamp.”

Whether they would be liable or not remains to be seen since Bitstamp does not make the law, does not interpret it, nor enforce it, but they have used some of the strongest language yet, stating “BCC is an alt-coin and the decision to list BCC tokens remains at our sole discretion at all times.”

Bitcoin Cash is different from any other digital currency as it chain-split hardforks bitcoin into two coins, Bitcoin Core, which is to retain the bitcoin brand and BTC ticker, at least for now, and Bitcoin Cash.

The planned split follows years of debate on bitcoin’s scalability, with the two very different visions seemingly irreconcilable, so they are apparently going their own way.

Numerous exchanges have come out in support of Bitcoin Cash, including the second biggest bitcoin exchange, Bithumb, potentially Kraken, ViaBTC, OKex, and many others.

Coinbase, however, has stated they will not give Bitcoin Cash to their customers, although Brian Armstrong, its CEO, added some nuance today in asking bitcoiners to trust him on the Bitcoin Cash matter.

Bitstamp now seemingly joins them, but the matter here is a bit more complicated because Bitstamp recently signed an agreement with a Swizz bank to allow the bank’s customers to trade bitcoins.

As such, the bank may be liable if they do not provide customers with their BCC assets, as probably would be Bitstamp, which is a regulated exchange.

Especially as BCC currently has considerable value at around $400-$500 on ViaBTC futures. So they may have little choice but to allow BCC withdrawals, although of course they have full discretion regarding its listing for trading.

However, considering BCC has trading volumes of some $10 million on ViaBTC before the asset even exists, volumes that amount to 1/3rd of Bitstamp’s, they may eventually list it.

Because BCC appears to have strong support among bitcoiners who want the option to directly transact on-chain in a peer-to-peer manner rather than through bitbank intermediaries as Bitcoin Core plans following the activation of segregated witnesses (segwit).

Multibit, one of the oldest bitcoin wallets, has today announced they are closing down, citing segwit as one of the reasons in a statement:

“Bitcoin has gone through a fundamental change in regards to the way fees work. The addition of SegWit in the coming weeks will mean the Multibit software has fallen still further behind.

Unfortunately, KeepKey simply does not have the resources to support the current issues… Thus, KeepKey will discontinue support and maintenance of Multibit, effective immediately.”

The complexity of segwit and the time it would take for the network to upgrade its capacity through segregated witnesses has been one of the main criticism from Bitcoin Cash supporters.

Therefore, they’ve decided to provide the market with a choice on whether they’d prefer to follow Nakamoto’s method in increasing bitcoin’s capacity, or the fundamental change to the way bitcoin operates which segwit provides.

A choice that is to go live in just four days when the bitcoin network undergoes its first hardfork chain-split, opening the decision to the free market, the ultimate 51%.

 

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