Joint initiative against fraudulent practices in connection with Bcash (Bitcoin Cash)
More than 600 crypto enthusiasts (Update 30th April – 975+ crypto enthusiasts), among them some influential industry leaders and other members of the Bitcoin community, are planning to file a class action lawsuit against Roger Ver in connection with Bitcoin Cash, better known as Bcash. According to the statements on http://bitcoincomlawsuit.info/, which announced the class action lawsuit, those members are people who: “…invest their time and money to protect users from fraudulent businesses and to help victims regain lost assets.” Additional details will be published after the suit is filed.
Bitcoin Cash, Bcash or also called Bash or even Shitcoin by some
Bcash, i.e. Bitcoin Cash, was created through a so-called hard fork – i.e. a copy with small changes to the software code – on 1st August 2017 and is very controversial. For various reasons, I am explicitly warning people from buying this cryptocurrency. I am far from the only one who does so, and not the most prominent person either.
After Bash advocats have tried to position their coin on the market with many dirty tricks over the last few months, it looks like Bitcoin fans and supporters have had enough and want to press charges against the self-proclaimed representative for Bcash. The reason is not only the many nebulous marketing attacks, but also the recent exercises taken by Mr. Ver and consorts to create confusion among users. They own the domain bitcoin.com, and they modified it in such a way that inexperienced prospective buyers are tricked into buying Bitcoin Cash instead of Bitcoin. This is obviously extremely misleading to new users, maybe it’s even fraud.
Bcash is one of hundreds of alt coins
Bcash is one of many hundred alt coins and therefore not Bitcoin. The fact that the initiators used the same computer code to create this cryptocurrency doesn’t change anything about that. This is entirely legal and is being done again and again. There is nothing wrong with that either. However, a few people profit massively when the market value of Bcash goes up, and these perpetrators manipulate the markets with clever marketing. It looks like this time they went to far.
This is how Bitcoin Cash / Bcash was created
In general, hard forks are used to create a new cryptocurrency. This begins with the first block, the genesis block. Miners help with building up the network because they are hoping for financial success, and a group of activists and participants use this new cryptocurrency from that point. That is what happened with LiteCoin, Monero, Zcash and many others. It was not so for Bcash, which was assigned the ticker symbol BCH instead of BTC, like the original Bitcoin.
Bcash branched off from a certain block in the main chain. The same code was used, and that led to the historic inventory of the chain being transferred as well, or every Bcash coin having its beginning in the original chain. That in turn meant that everyone who had a Bitcoin at the time of the branching off now also owned a Bcash coin. Everyone suddenly had exactly as many Bcash as they had previously had Bitcoins. This gave rise to a host of problems.
Problems upon Problems
For one thing, there was the problem of the high difficulty already described. A much bigger problem, however, was the question of how a user could get at the Bcash. To do that, you had to log into a Bcash wallet with a private key and transfer the Bcash. Anyone who has read this book this far will understand immediately that that is an absolute no-no. No one with half an understanding of how important the private keys are would ever use them in a strange wallet that is new to the market. You would still use the private key for your Bitcoins, but what if the Bcash wallet had an error and then all the Bitcoins disappeared?
Exchanges were facing big technical tasks
The wallets of the exchanges were plagued by the same problems except, in this case, it would be customers’ money that disappeared. For that reason, some exchanges announced that they would not be supporting Bcash. Period.
But that would not do either because it would mean that customers would be deprived of Bcash’s value. This was a completely new situation. Some exchanges have enabled payments, while others are still working on it. Nobody is enthusiastic about it because there are additional costs for the programming that is required of the exchanges and wallet-producers.
The Bcash rate was very volatile and reached US $700 at its peak, sometimes with a low volume of trading. It then underwent a succession of losses. At the time of printing this book, the Bcash rate was hovering at about $2.000
Although the rate is only 10—15 percent of that of Bitcoin, it is gifted money for most Bitcoin hodlers. The question is how can you change this Bcash into Bitcoin without running the risk of Bitcoins being lost. In this case, as always, it is crucial to keep your own private keys. Absolutely crucial
Securing forked coins
Securing forked coins requires some effort, but it is the safest way to make a little more money—about 10—15 percent more.
The first and most important step is to secure your Bitcoins.
First, you transfer your Bitcoins to a new address, so that they are safe so long as you have the private key for this new address. Next, you take the old private key and use it in a Bcash wallet so that the Bcash coins are displayed and can be transferred from there. Nothing can happen to the Bitcoins because they are no longer under the old address generated with the old key.
The next step is to send the Bcash to an exchange and change them into Bitcoins. You then send these Bitcoins to the new Bitcoin address. Done!
Mix up the addresses and you’ll lose everything
You must be careful to do it exactly like this, because if you accidentally send the Bitcoins to a Bcash address due to a faulty Bcash wallet, or a faulty exchange function, they are irretrievably lost.
Different people follow different philosophies
In public systems, different people follow different philosophies. That is a good thing and means a little freedom. But people need to be assured that nothing is lost, and it needs to be easy for everyone to manage. But the blockchain will not disappear, and more and more specialists are developing systems that can be operated easily and conveniently. Just like the internet itself. In its early days, the internet was very complicated, and then came the world wide web simplified things. Today almost everyone uses the internet and most people can manage it well.
Conscious deception goes against the fundamental ideas of blockchain
However,then professionals such as Roger Ver and consorts are trying to consciously mislead and trick people, then this isn’t exactly helpful. We can only hope that the people behind Bcash act in a fair manner and not because of pure greed for profits. That surely wasn’t the intention of Bitcoin founder Satoshi Nakamoto, and neither that of the many hundreds of thousands of Bitcoin fans.