The world of cryptocurrencies is one where tumult is the norm, and calm is unusual. Such has never been truer than it has been over the past few weeks, as Bitcoin and its byproduct—Bitcoin Cash—set out on entirely new paths.
For those who might be blissfully unaware of what is going on, there is a new cryptocurrency of sorts that was borne out of Bitcoin. The need for the additional form of currency came about as transaction times for Bitcoin became bogged down due to popularity combined with the fact that retailers were scared off by these longer transaction times. In need of retail adaptation and more widespread use, something had to be done.
Since the launch of Bitcoin Cash earlier this week, a lot has happened, but perhaps one of the biggest developments is that massive cryptocurrency exchange, Coinbase, has decided it will not yet support Bitcoin Cash. Though the site has received ceaseless backlash since announcing the decision last week, Coinbase investors feel as though it is the right move.
Naturally, the question on the minds of investors and bystanders alike is what will happen to Coinbase now that it has made the decision to not support Bitcoin Cash. As of now—only a few days after the hard fork—it is tough to say with any amount of certainty what the future holds for Coinbase. Having made this decision, one that has angered countless numbers of people, the site risks losing a major chunk of users. Not only that, the site runs the risk of missing out on a huge opportunity should Bitcoin Cash come anywhere near the level of popularity currently claimed by Bitcoin. Despite these potential risks, investors in Coinbase support the decision and think that it might be one that will pay dividends further down the line.
Barry Schuler, an investor in Coinbase that recently spoke to Business Insider, is not worried about the decision and wholeheartedly supports it. In a statement, he was quoted as saying, “There’s no one on the board or any investor who doesn’t completely back the point of view that we should err on the side of safety and trust. From an investor’s point of view, we invested in Coinbase because they have made a voluntary commitment to be regulated.”
The fact of the matter is that all of this anger very well might be displaced, at best. The reason for this is due to the fact that while Coinbase announced they would not deal with Bitcoin Cash, they did not say that the decision is one that will last in perpetuity. In fact, there are many people out there who think that Coinbase may make an announcement in the near future regarding their acceptance of the new Bitcoin spin-off. Though this is pure speculation, it drives home the point that Coinbase can change their mind at any point in time.
As of right now, Coinbase seems to be biding their time and letting this whole situation play out. Though the world of cryptocurrencies is often filled with a bunch of unknowns, this recent Bitcoin fork has presented more question marks than one could have ever imagined.
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