Bitcoin Cash Support Produces 10% Drop in Bitcoin
Bitcoin’s value decreased this Tuesday right after Coinbase, the leading Bitcoin trading platform in the United States, announced that it will offer support for Bitcoin Cash.
“Sends and receives are available immediately. Buys and sells will be available to all customers once there is sufficient liquidity on GDAX. We anticipate that this will take a few hours,” posted Coinbase on its blog Tuesday.
But Coinbase also stated in a following tweet at 11:15 p.m. ET, that purchasing and selling will be unavailable until Wednesday. Trading with Bitcoin Cash was suspended on GDAX until noon ET Wednesday. The trading platform has had issues with keeping up with high demand rates.
Bitcoin Cash came from a split that occurred in the original Bitcoin on the 1st of August after major developers wanted to improve the speed and costs of Bitcoin transactions. Roger Ver, an early bitcoin investor, is an avid supporter of Bitcoin Cash.
The developers that backed up the original bitcoin failed to reach a consensus this fall on their own upgrade proposal, SegWit2x.
Bitcoin cash’s value shot up 70% Tuesday evening ET reaching a record high of $3,813.70, and was trading around $3,339 as of 11:37 p.m. ET, according to CoinMarketCap
Bitcoin investors that were at the time of the split, should have been given an equivalent amount of Bitcoin Cash, but Coinbase did not do so, saying that they will offer support by January. They went on to say that all customers at the time of the split would receive their Bitcoin Cash.
This statement comes after the recent news in which BitPay, a large bitcoin payment service provider, and important cryptocurrency storage company Blockchain said that they would support Bitcoin Cash.