The world’s most popular digital currency exchange, Coinbase, is under fire from angry customers over its decision not to support a new version of bitcoin that could also make it vulnerable to ruinous legal trouble.
The creation of the new currency means every existing bitcoin holder is entitled to an equal amount of what the breakaway miners call “Bitcoin Cash.” Coinbase’s decision against supporting the new version, however, means its customers will not receive this benefit.
This has led customers to post angry messages on Coinbase message boards, accusing the company of stealing their property and threatening class action lawsuits.
Common law property rules mean that the newly issued Bitcoin Cash belongs to the Coinbase customers in the same way a newborn calf belongs to the owner of a cow.
Coinbase, however, has been conspicuously advising its customers that it does not intend to support any new currency that emerges from a bitcoin fork.
My bottom line is that, if you’re holding cows for someone else, I’m not sure it’s enough to say "we don’t sell veal."
As for Coinbase, a spokesperson stated that the company has no intention of keeping customers’ Bitcoin Cash for itself or even access the “cash” at all. He added that, if Coinbase decides to support Bitcoin Cash in the future, it will distribute the balances that accrue at the time of the August 1 fork.
All of the controversy over the August 1 fork, however, appears to have done little to spook crypto-currency. As of Monday evening, bitcoin prices were around $2,850, not far from its all-time high of just over $3,000.