Coinbase has announced full support for Bitcoin Cash (BCH) on its iOS application, enabling users to buy, sell, send, and receive the cryptocurrency. This rollout follows the platform’s earlier commitment to credit users with BCH equivalent to their Bitcoin holdings at the time of the fork.
The integration arrives months after the Bitcoin Cash network split from Bitcoin in August 2017. While initially hesitant to support the forked asset, Coinbase reversed its stance and began processing user balances accordingly.
What Is a Bitcoin Fork?
A cryptocurrency fork occurs when a blockchain undergoes a significant protocol change, resulting in two separate versions with a shared transaction history. As Coinbase explains:
A “fork” is a change to the software of the digital currency that creates two separate versions of the blockchain with a shared history.
Forks can be temporary or permanent, potentially creating two distinct digital currencies.
Bitcoin Cash emerged from such a permanent divergence, intended to offer larger block sizes and faster transaction processing compared to Bitcoin.
Crediting User Balances
Since Bitcoin Cash was not initially supported on Coinbase, users did not automatically receive BCH for their BTC holdings at the time of the fork. The company has now rectified this by crediting eligible users:
All customers who held a Bitcoin balance on Coinbase at the time of the fork will now see an equal balance of Bitcoin Cash available in their Coinbase account.
This credit reflects each user’s Bitcoin balance as of 13:20 UTC on August 1, 2017.
Market Impact and Performance Issues
The announcement had an immediate effect on cryptocurrency markets. Bitcoin (BTC) experienced a drop of over 10%, while Bitcoin Cash (BCH) saw significant gains.
Additionally, user excitement led to technical challenges. Coinbase temporarily disabled BCH buying and selling for some users to maintain platform stability. However, sending and receiving BCH remained operational throughout.
Accessing Bitcoin Cash on Coinbase
Users can manage their Bitcoin Cash through the Coinbase iOS app or the company’s website. Due to high demand, some users may experience intermittent performance issues.
For those looking to diversify their crypto portfolio with altcoins like Bitcoin Cash, explore more trading strategies to make informed decisions.
Frequently Asked Questions
What is Bitcoin Cash?
Bitcoin Cash is a cryptocurrency that originated from a hard fork of the Bitcoin blockchain. It was designed to enable faster and cheaper transactions by increasing the block size limit.
How do I claim my Bitcoin Cash on Coinbase?
Eligible users—those who held Bitcoin on Coinbase during the fork—are automatically credited with the corresponding BCH amount. No additional action is required.
Why did Bitcoin’s price drop after the announcement?
Market analysts suggest that the addition of BCH trading led to some investors reallocating funds from Bitcoin to Bitcoin Cash, contributing to a short-term price decrease.
Can I currently trade Bitcoin Cash on Coinbase?
While full support has been added, temporary service interruptions may occur due to high demand. Check the app or website for the latest status updates.
Is Bitcoin Cash the same as Bitcoin?
No. Although they share a transaction history up to the fork, Bitcoin and Bitcoin Cash are separate assets with different technical structures and market valuations.
Where can I learn more about managing forked assets?
Understanding how forks work can help you navigate similar events in the future. For a deeper dive into handling forked cryptocurrencies, get advanced methods from reliable educational resources.