A recent article by Misha Guttentag created a stir, urging Coinbase to halt the trading of bitcoin cash on its platform. As a recent graduate from Yale Law, Guttentag argues that bitcoin cash is engaged in deceptive practices and consumer fraud.
Bitcoin cash was abruptly added to the Coinbase exchange last year, which resulted in a price surge and an unexpected platform outage. The sudden announcement caught many in the cryptocurrency community off guard.
Engaged in a continuous “civil war” with bitcoin, its predecessor, bitcoin cash has been since its inception. Proponents advocate that the variable block size inherent to bitcoin cash aligns with Satoshi Nakamoto’s vision for cryptocurrency, allowing for efficient transaction processing. Detractors, however, argue that bitcoin cash leverages bitcoin’s established brand, aiming to replace its market dominance.
To substantiate his allegations against bitcoin cash, Guttentag presented several instances where the currency has either imitated bitcoin or misled investors into believing they were dealing with the original bitcoin.
For instance, Roger Ver, an outspoken supporter of bitcoin cash, owns the domain bitcoin.com. This site might be a preliminary stop for new investors eager to learn about cryptocurrencies.
Eliminating bitcoin cash would serve a dual purpose for Coinbase, Guttentag argued. Firstly, it would rectify their error in adding support for bitcoin cash without appropriate pre-announcement. Secondly, it would signal to other coins considering Coinbase listing that such behavior might be tolerated elsewhere, but not here.
Guttentag asserts that by enabling the purchase of bitcoin cash, Coinbase indirectly endorses its portrayal as the original bitcoin. He suggests that removing bitcoin cash is vital to protect Coinbase’s brand integrity. This action would not only rid Coinbase of a problematic association but also strengthen its regulatory image.
Engaging in cryptocurrency or Initial Coin Offerings (“ICOs”) involves substantial risk and uncertainty. Nothing in this article should be considered a recommendation by any party or the writer for investment in cryptocurrencies or ICOs. Individual financial situations vary, and consulting a professional is essential before making financial decisions. The author holds a minor stake in bitcoin as of this article’s writing.
The cryptocurrency discourse reveals this to be a contentious topic, as responses to Guttentag’s post show. Opinions range from strong support to sharp criticism of bitcoin cash, with extensive discussions on both sides. From the start of the year, where bitcoin cash was priced at $2510, it plummeted to $783 by Tuesday morning. However, as of 3:11 UTC, the price had rebounded to $1240.85, marking a 24.4% increase over the previous day’s value.
