Bitcoin Cash (ViaBTC) - User Activated Hard Fork (UAHF)

Hard-fork happening on August 1st

ViaBTC Chinese exchange who is allegedly financed by Bitmain has announced Bitcoin hard-fork on August 1st to create new altcoin called Bitcoin Cash. They have taken the Bitcoin's name like it's theirs to take and clam that it will have low fees and reliable confirmations.

All the Bitcoin holders who own their security keys will automatically own Bitcoin Cash. So everyone who holds their Bitcoin on the exchanges should know that the exchange will make the decisions on your behalf and you can end up without the altcoin counterpart in your possession.

No way to avoid it

This hard-fork seems to be here to stay, as the Electrum wallet is already working on the version that supports new altcoins. So my suggestion is to get your Bitcoins off the exchanges, to your offline wallets and don't give your security keys to anyone.

Essentially it is the same BitcoinABC solution that was posted by Bitmain (link) with 8MB blocks being the main feature that allows more transactions per second. Replay and Wipeout Protection is in there so that both chains can coexist safely.

ViaBTC has released the statement on their site:

Statement on the Release of “BCC/CNY, BCC/BTC” Trading Pair

Recently at “The Future of Bitcoin Conference 2017”, big block supporters presented a BitcoinABC solution (bitcoinabc.org). We have since received many inquiries from miners and users, asking if we would be supporting BitcoinABC mining, especially from those with ViaBTC S9 cloud mining contracts, who are eager to support BitcoinABC with their mining hashrates.

1. We will designate the token “Bitcoin Cash”（BCC）to the possible split coin led by the activation of UAHF.

2. From 22nd July 2017, ViaBTC exchange users can trade your “BTC” assets against 1:1 ratio into both “BCC” and “BTC_FROZEN2” assets. Namely, you can trade 1 “BTC” into 1 “BCC” token and 1 “BTC_FROZEN2” token, or vice versa. Deposit and withdrawal are not available for “BCC” and ”BTC_FROZEN2”.

3. On the same day, “BCC/CNY，BCC/BTC” trading pair will be released.

4. BTC_FROZEN2 represents all tokens besides BCC that may split from the original BTC chain, and is not available for trading.

5. After UAHF activates at 12:20 1st August 2017 (UTC time), all your “BTC_FROZEN2” assets will be redeemed to your “BTC” assets (no need to own the same amount of BCC) and are available for trading.

6. We will decide on the best timing to allow deposit and withdrawal for “BCC”, based on the functioning of its chain. And we will allocate all other (possible) split “BTC” tokens to your accounts then.

I would not suggest investing in these futures and trusting these shady Chinese guys with your Bitcoin at all. As you would not be able to control your Bitcoin and we don't know what are their intentions at this time. I will sell my BitcoinCashCoins as soon as I am able to do so, because price most likely will melt in hours.

Bitcoin price

Bitcoin price should not be affected too much as only 4% of the Bitcoin's hashing power is expected to be dedicated for Bitcoin Cash mining. That is a very small fraction and with BIP91 (clean SegWit) being just locked in, we might not even experience the price drop at all. Only if we could avoid spreading the FUD!

BTC-USD daily chart

Sources:

• Bitcoin Cash:
https://www.bitcoincash.org/
• ViaBTC Statement:
https://www.viabtc.com/convert/bcc
• BitcoinABC:
https://www.bitcoinabc.org/
• Bitmains UAHF contingency plan:
https://blog.bitmain.com/en/uahf-contingency-plan-uasf-bip148/

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