Bitcoin Cash (BCH): Scam from the start? by drabs

bitcoin · @drabs · Aug 2 '17 (edited)

$1.64

Bitcoin Cash (BCH): Scam from the start?

<html>
<p>While I believe the following to be true, it may not be the case. Please explain if I am mistaken</p>
<p><img src="https://s2.postimg.org/4fqgl9deh/Bitcoin_Cashes.jpg" width="672" height="461"/></p>
<h1><strong>The most obvious aspects of the scam:</strong></h1>
<p>Bitcoin wallets which referenced "they would not support the BCH fork", many wallets claimed that they "did not see the value of the currency" meanwhile BCH futures were supposedly listed at 200-400 dolars so the assertion of not seeing value clearly seems to be a lie. While class action lawsuits are being drawn for users to receive their share of BCH from these wallets like Coinbase. Exchanges and wallets owners have had time to dump their BCH and even set to repurchase should the market price fall.&nbsp;</p>
<h2><strong>Users were restricted access to their coins</strong></h2>
<p>During this period of "volatility", some sites were supposedly closed from access whereby individuals couldn't remove their BTC keys for redeeming BCH. It is my understanding that the exchanges would have been able to utilize the users BCH during this time period.&nbsp;</p>
<h2><strong>Bitfinex exchange funny business</strong></h2>
<p>Supposedly as described by Emin Gün Sirer, According to the Bitfinex guidelines for calculating BCH, those with BTC would be able to redeem BCH. Those with short or long positions would not owe or receive BCH, and BTC lenders would receive BCH. In other words Short 1 btc. Buy 1 btc. Get 1 bch free.&nbsp;</p>
<p>While many wallets supported a 1 BTC to 1 BCH exchange. According to twitter user and a steamit user &nbsp;over 20,000 BTC or $55 million worth of short positions opened on bitfinex. Likely repurchased with USD in order to receive their free BCH. After the fork Bitfinex exchange would determine a coefficient to multiply your redeemable BCH by to cover their funny business practices. &nbsp;This coefficient to my knowledge turned out to be in the .3 range to cover all of the lent out BTC and removed BTC. To avoid the coefficient and redeem full value of BCH all one had to do was remove their keys to a private wallet prior to the fork whereby those who chose not to do so would incur the loss. It is my understanding that these users would then sell High their essentially free BCH and than repurchase when the price is low. All the while rope a doping unsuspecting investors. Any subsequent rise of BCH could partially be sold off and subsequently repurchased at a lower price as others drop their shares as well. Is this what people refer to as Pumping and Dumping?</p>
<h3><strong>Assorted Musings</strong></h3>
<p>I'll admit I am not the most knowledgeable on block chain technologies, or the process by which miners accrue previously unaccessed Bitcoin. That being said, to me, there is clearly a scam at hand. I won't even attempt to explain or pretend to comprehend how the change in block size affects the possibility for these transactions, nor any resulting drop in the USD exchange rate, nor the future value of a potentially undervaluated Dinar(RSD). Nor of the inherent value of BCH before and after miners start working on the (smaller blockchain?) or (future block size increases?) Whether these same individuals and wallets and exchanges are stockpiling BCH or simply profiting on the exchange, or both. Any supporting info in the comments bellow would be greatly appreciated</p>
<p>&nbsp;</p>
</html>

👍 teamsteem, pharesim, sift666, minnowsupport, elyaque, berkah, someguy123, pnc, lastminuteman, pheonike, fivefiveeleven, steemprentice, doyouknow, stephen.king989, panossant, greenstar, raymondspeaks, ogochukwu, shellyduncan, shawnfishbit, lauralemons, diana.catherine, jhermanbeans, gindor, rycharde, bluchr, sharoon, pomperipossa, banjo, edrivegom, aarellanes, marcusxman, n1kofi, raizen, hitmeasap, starrkravenmaf, gohba.handcrafts, cloh76, pusteblume, lamech-m, ch00fy, cryptohustler, eyegasm, loreennaa, mondeja, burnedpixel, endaksi1, detlev, myday, taica, worldtraveler, resiliencia, markfitzgerald, sportsprediction, whatamidoing, qwasert, numpypython, outerground, andrewgenaille, luismy, ophelion, timbalabuch, sellergenius, tjtrusty, and 18 others

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@minnowsupport · Aug 3 '17

<p>Congratulations!  This post has been upvoted from the communal account, @minnowsupport, by Drabs from the Minnow Support Project.  It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, and someguy123.  The goal is to help Steemit grow by supporting Minnows and creating a social network.  Please find us in the <a href="https://discord.gg/HYj4yvw">Peace, Abundance, and Liberty Network (PALnet) Discord Channel</a>.  It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.</p>

<p>If you like what we're doing please upvote this comment so we can continue to build the community account that's supporting all members.</p>

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@sharoon · Aug 3 '17

very nice

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@panossant · Aug 3 '17

Great article, The whole BCH situation looks shady, a lot of people make money out of thin air and this is what worries me, as I outlined on my post https://steemit.com/bitcoin/@panossant/bit-coin-cash-seems-like-the-best-con-job-of-the-last-couple-centuries

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@sift666 · Aug 7 '17

$0.07

I'm fully into exposing scams, but I disagree with you on this one...

When Steemit was starting out last year a lot of people said it was a scam. But the thing was, it cost nothing to join and they gave you $5.

That is not how scams work.

Bitcoin cash is the same - I had Bitcoin, so after the hardfork I was given some bitcoin cash. For nothing. My Bitcoin then went up in value, so even if the Bitcoin cash crashes and burns I'm still ahead. 

 Actually the Bitcoin Cash is holding a reasonable amount of value and I just ignore it and hope that like a lottery ticket, it goes up. I can't lose and don't have any attachment to the outcome.

https://steemit.com/cryptocurrency/@sift666/was-the-bitcoin-fork-just-an-excuse-for-americans-to-freak-out

![](https://steemitimages.com/DQmcmsnCy7JJi2bVEF8deZJm9rLFLAoDRV5h4ExFicUcfgy/image.png)

This is not how scams work either!

👍 sift666

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@finleyexp · Aug 10 '17

I don't know that BCH is a scam. Any time there's a hard fork possibility, the exchanges have to decide which chain they'll follow. They also have to decide if they're going to honor the 1:1 creation that arises from the split. That's why they tell people to move their crypto to a private wallet before the split. Anyone who wants full control over their old crypto and their new crypto (split) shouldn't leave it in an exchange.

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@drabs · Aug 10 '17 (edited)

That's the problem. Only scammers won't support the 1:1 creation, and only scammers would allow for the buying of a short position to count as an additional coin when no such coin exists. Then decide afterwards how much to penalize individuals not smart enough or able to take out their coins. Meanwhile traders get to sell imaginary coins while others don't even have access to the market.

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@finleyexp · Aug 11 '17

For that matter, it's possible for an exchange to keep the new coins to dump on a competitor's exchange.

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